Construction activity in Hong Kong remain robust as the government’s plan to boost housing supply and to improve the city’s transport links moves into full swing. We expect the construction sector to continue to grow relatively robustly and have revised up our 2012 construction real growth estimate to 10.1%. For 2013, we are cautiously optimistic towards the sector as the large pipeline of projects and the launch of another round of quantitative easing in the US should provide a solid base to support construction activity.
Key developments in Hong Kong’s Infrastructure Sector:
- In July 2012, South Korea’s Samsung Construction & Trading (Samsung C&T) won a construction contract in Hong Kong as part of a consortium with Hong Kong-based builder Hsin Chong. The HKD589mn (US$350mn) contract has been awarded by Hong Kong’s rail operator Mass Transit Railway (MTR) and includes the construction of the 2.2km subway section of the Shatin to Central Link, and two stations. Samsung C&T holds a 60% stake in the project, which is likely to be completed in 69 months.