After experiencing the riots in 2019, due to the economic weakness caused by the Covid-19 pandemic, the construction industry in Hong Kong is expected to shrink by 9.2% in 2020.
According to a report by the South China Morning Post, the Hong Kong Architectural Services Department reported that no new projects have been started in the first two months of this year. This is the first time since it was recorded in 2002.
At the same time, international design consulting firm Arcadis said that due to work stoppages and supply shortages after the Lunar New Year holidays, workers were unable to return to Hong Kong from the mainland, and more than 90% of the city ’s project progress was delayed in February and March. According to the report, it was pointed out that Hong Kong is the city with the second highest construction cost in the world.
According to a report in March, Hong Kong's construction industry is expected to shrink by 9% in 2020, making it the fourth consecutive year of decline.
According to the latest news from data and analysis company GlobalData, tourism and exports are the two main pillars of the Hong Kong economy, but the Covid-19 outbreak caused the number of Hong Kong tourists to fall by 80.9% year-on-year in the first quarter. The number of arrivals in March alone fell by 98.6% compared with the same period last year.
The economy of Hong Kong, China, was hit twice, as merchandise exports fell by 9.7% in the first three months of 2020.
GlobalData's construction analyst Dhananjay Sharma said: "Due to the outbreak of coronavirus, the commercial sector is facing a high risk of a sharp decline." Investment in the market is expected to be affected by the decline in tourist numbers in the short term. Retail sales are also facing the impact of a pandemic. By March 2020, sales were down 42% year-on-year.
Sharma concluded: "Although construction projects can gradually resume pace as the government relaxes social alienation measures, investment in major infrastructure projects may be affected due to funding issues and continued Covid-19 impact.
