Construction activity in Q3 2023 shows growth, reaching HK$69.0 billion

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11th December 2023 – (Hong Kong) The Quarterly Survey of Construction Output, released today (December 11) by the Census and Statistics Department (C&SD), reveals that the total gross value of construction works (GVCW) carried out by main contractors in the third quarter of 2023 increased by 13.2% in nominal terms compared to the same period last year, reaching a total of $69.0 billion.

When accounting for price changes, the provisional results indicate that the real terms growth of GVCW performed by main contractors was even higher, standing at 14.3% over the same period. Real terms GVCW is obtained by adjusting the corresponding nominal value using an appropriate price index based on the price level in the base period of 2000.

Analyzing the data by type of construction works, the GVCW performed at private sector sites amounted to $21.9 billion in the third quarter of 2023, representing a significant increase of 31.4% in nominal terms compared to the previous year. In real terms, this figure rose by 29.4%. Meanwhile, the GVCW performed at public sector sites experienced an 11.5% nominal increase, reaching $22.8 billion in the same quarter of 2023. In real terms, it grew by 12.7%.

The GVCW carried out by main contractors at locations other than construction sites, which includes activities such as minor new construction, building maintenance and repair, as well as electrical equipment installation and maintenance, amounted to $24.3 billion in the third quarter of 2023. It recorded a nominal increase of 1.9% compared to the previous year, while in real terms, the growth was 3.1%.

When examining major end-use groups, the GVCW related to residential building projects at construction sites amounted to $18.7 billion in the third quarter of 2023. This represented a substantial nominal increase of 60.0% compared to the same period last year. Additionally, the GVCW for transport projects at construction sites experienced a nominal growth of 2.3% and reached $8.7 billion in the third quarter of 2023.

On a quarter-to-quarter basis, after adjusting for seasonal variations, the GVCW performed by main contractors showed a slight nominal decrease of 0.3% in the third quarter of 2023 compared to the second quarter of the same year. However, in real terms, it slightly increased by 0.3% during the same period, demonstrating overall stability in construction activity.