Property & Construction Market Update 2018 – Hong Kong & Macau
In recent years, due to the limited space in Hong Kong and high demand for residential property, home prices are ever increasing and showing no signs of slowing down.
The emergence of Mainland developers within the last year, such as Country Garden, China Vanke, China Evergrande Group and Agile Property, have not only created fierce competition for land acquisition in Hong Kong but has also driven up home prices to record highs for 23 consecutive months, which was by far the longest ever upward trajectory in a quarter of a century.
Aside from residential development, the iconic project dubbed “Victoria Dockside” by K11 Executive Vice-Chairman and General Manager of New World Development, Adrian Cheng, is set to officially open in 2019. The US 2.6 billion, three million square foot project will comprise of premier art and design facilities, combined with office space, offering a panoramic view of Hong Kong’s dockside.
Moving on to the Construction sector, there are many exciting projects on-going and near completion phase. The Hong Kong-Zhuhai-Macau (HKZM) mega bridge was set to open in July this year, but with delays on its structural integrity it may not commence for mobilization until late 2018. The 29-kilometre section will be one of the world’s longest bridge, connecting to Zhuhai China, and to Macau.
Construction of The Hong Kong Third Runway (3RS), comprising of over 650 hectares of land, commenced in 2016 and is expected to be complete by 2024. The 3RS will include a new runway, taxiway system and a passenger building. The project itself will generate over 139,000 jobs during the construction phase, especially in the years 2022 – 2023.
The first half of 2018 in Macau was filled with promising news of upcoming and ongoing project expansions. These projects include the Galaxy, Phases 3 & 4, which are scheduled to complete by 2019/2020, with a budget of no less than HKD 43 billion by the firm’s deputy chairman Francis Lui Yiu Tung.
Sands Group, owned by U.S. billionaire Sheldon Adelson, is one of the most well-known resort operators globally. They are currently undergoing a redevelopment of the Sands Cotai Hotel, transforming it into a London-themed resort. This will be an estimate of MOP 8.9 Billion which includes expansion, renovation and rebranding scheduled to complete by 2020.
Other hotel groups planning project completion include The Grand Lisboa Palace project with Sociedade de Jogos de Macau (SJM). Aside from various delays over the years, CEO Ambrose So is aiming for to open next year, in 2019.
With the vast number of projects currently under construction, the demand for talented individuals from design and build to construction will remain a high priority for developers in both Hong Kong and Macau.
For further information on the Hong Kong Property and Construction industry please get in contact with Jacky Lee.
Jacky Lee contact details;
Phone; + 852 3796 3121
Web; https://www.redpathpartners.com/hk office
Linkedin; https://www.linkedin.com/in/jacky-lee-57b86841/ Back to news