Hong Kong Construction Sector to Grow by 2.6% Annually Through 2029
Hong Kong, Tuesday, 16 September 2025.
Despite current challenges, Hong Kong’s construction industry is projected to grow at 2.6% annually from 2026 to 2029, driven by significant investments in transport and infrastructure.
Current Economic Challenges
The Hong Kong construction industry is presently facing a slowdown, with growth decelerating from 3.7% in 2024 to a projected 0.7% in 2025. This decline is attributed to a weak housing market, high inflation, and a significant fiscal deficit, which is expected to reach HKD87.2 billion ($11.2 billion) for the fiscal year 2024-2025. The first quarter of 2025 also saw a 2.3% year-on-year decrease in gross domestic fixed capital formation in building and construction, impacted by reductions in both the private (3% YoY) and public (2% YoY) sectors [1].
Investment-Driven Growth
Despite these challenges, the construction sector is poised for recovery, supported by the FY2025-26 Budget and significant investments in transport, energy, and commercial sectors. The ‘Skytopia’ infrastructure project, announced in January 2025 by Hong Kong’s Airport Authority, is a major undertaking with an estimated investment of HKD100 billion ($12.8 billion), of which HKD70 billion ($7 billion) is expected to come from international investors. This project includes an arts hub, yacht facilities, driverless transportation, and a mixed-use development, highlighting a strategic push towards modern infrastructure [1].
Future Outlook and Economic Impact
Looking ahead, the Hong Kong construction industry is projected to achieve an annual average growth rate of 2.6% from 2026 to 2029. This growth is primarily driven by planned investments in transport, electricity, housing, and industrial projects. The total investment in the construction sector is anticipated to reach HKD1 trillion by 2029, creating approximately 40,000 jobs over the next four years. These developments are expected to contribute significantly to Hong Kong’s economic recovery and sustainability [1][2].
Conclusion: Resilience Amidst Challenges
While the immediate economic landscape presents hurdles, the strategic investments planned for the Hong Kong construction sector underscore a long-term vision of resilience and growth. These initiatives not only aim to boost economic activity but also to lay the groundwork for sustainable development, positioning the construction industry as a pivotal component of Hong Kong’s broader economic recovery strategy [1][2].