Overview   

Table: Trade data for building materials, hardware, and equipment in Hong Kong.   
      .   

Units: US$ Thousand
Data Sources: Hong Kong Census & Statistics Department  
  
As one of the most densely populated cities in the world, Hong Kong’s construction industry is characterized by compact high-rise residential buildings and office towers.  Hong Kong developers are experts in slope and high-density design, design within tight space constraints design-and-build methods with innovative building materials and land reclamation. 

The U.S. Commercial Service in Hong Kong has met with several top developers in Hong Kong who have expressed willingness to work with U.S.-based architecture, construction, and engineering firms. In addition, U.S.-made construction equipment and technology has potential in Hong Kong, particularly higher value-added products. Interested U.S. firms should work with a local distributing company to enter the market as most construction companies will source supplies through local distributors. For some major projects, however, Hong Kong contractors may seek suppliers directly from manufacturers for specific types of products and equipment.

Leading construction companies and developers are interested in engaging with foreign companies that understand the most cutting-edge construction and design practices. Currently, European construction and design firms have a larger presence than U.S. firms.  The U.S. Commercial Service believes that there is potential for the U.S. to gain more market share.

While 2023 marked the end of the pandemic for Hong Kong, and the construction industry was set to play a central role in advancing the city’s renewed development, it experienced mixed performance with some areas showing declines and others maintaining resilience. The industry is projected to slow down from an estimated 4% growth in 2024 to 0.7% in 2025, due to a number of factors including high interest rates, geopolitical tensions, and a slump in the property market, partially driven by reduced demand for commercial office space. However, the fit-out sector remains resilient, and the government is committed to infrastructure and housing development.

Areas of Development

Increased connectivity with the Greater Bay Area (GBA), which consists of nine cities in Guangdong province and the Hong Kong and Macau SARs, is a major priority for the Hong Kong government and a key motive behind the many construction projects Hong Kong is implementing.

It is estimated that annual capital works expenditure will exceed HK$100 billion (or US$12.8 billion) in the coming years, and the annual total construction output is expected to increase to around HK$300 billion (or US$38.5 billion). Please see here to access the full list of infrastructure projects the Hong Kong government is focused on, from railway projects to the Hong Kong International Airport expansion to artificial island reclamation to a system of wetland conservation parks.

In the Chief Executive’s 2024 Policy Address, a strong emphasis was placed on increasing land availability, with a target of 440,000 housing units over the next ten years to maintain a 70:30 public-to-private ratio. Of that target, 308,000 units will be dedicated to public housing while 132,000 will be allocated to private housing.  Regarding the latter, the Hong Kong Government plans to make land available for roughly 80,000 units via land sales and railway property developments in the next five years.    

Furthermore, in March 2025, a total of 22 Hong Kong and Chinese property developers submitted proposals to develop large land parcels in the Northern Metropolis, to turn 30,000 hectares (or 74,000 acres) of land in the New Territories, near the mainland China border, into a new housing area and economic hub, composed of a logistics hub, an innovation & technology zone, a boundary commerce & industry zone, a recreation, tourism and conservation circle.  

Design and Engineering Firms

U.S. construction design and engineering firms can partner with local developers and construction firms to bid for various projects. Many major projects are still under planning and can be found on the website of the Hong Kong Civil Engineering and Development Department.  Foreign construction professionals such as architects, engineers and surveyors or local partners must register with the Development Bureau to be on the approved list for consideration. 

To enhance efficiency and minimize material waste in the construction sector, the Hong Kong government has strongly encouraged industry to engage more in automation technology, prefabricated parts, and innovative construction methods such as Building Information Modeling (BIM) and Modular Integrated Construction (MIC) to increase productivity.  In 2018, the government mandated the use of BIM for all government projects over US$3.9 million.   

Opportunities/Leading Sub-sectors

1.    Green building materials and equipment  
2.    Low/zero carbon design and technologies   
3.    Building efficiency optimization systems and equipment  
4.    Building automation and management systems   
5.    Carbon assessment tools   
6.    Building information modeling software and modular integrated construction solutions  

Green Building and Design

In response to the Paris Agreement on climate change, the Hong Kong government-initiated policies aimed at achieving carbon neutrality by 2050. These policies include investing in the development of green buildings as a top priority. There are over 42,000 private buildings and more than 8,000 government buildings in Hong Kong. These buildings account for 90 percent of the total city’s electricity consumption and generate 60 percent of the city’s carbon emissions. To save energy and reduce emissions, the government has introduced BEAM Plus, a set of strict green certification standards to drive sustainable building performance and it has saved over 700,000 MWh of electricity each year.

Buildings that achieve certain energy savings with BEAM Plus or other internationally recognized standards such as LEED, BREEAM, and EDGE will be eligible for tax deductions. The government also allows private buildings to increase floor areas when green design elements are incorporated into buildings. With these incentives, property developers are increasingly willing to invest in green buildings.  Prominent buildings with top green rating include K11 (New World Development), Taikoo Place (Swire Properties) and the International Commerce Centre (MTR and Sun Hung Kai Properties).  These developers have established strong partnerships with foreign green design and engineering firms.  

According to the Hong Kong Green Building Council, more than 2,300 buildings are now certified by BEAM Plus. This presents opportunities for U.S. companies not only in architecture, design, and construction, but with relevant Environmental Technology solutions as well.

Current Market Assessment  

According to ResearchAndMarket.com, the Hong Kong construction market is expected to grow at a CAGR (Compound Annual Growth Rate) of 4% from 2022 to 2027 to reach total revenues of US$ 38.2 billion (2027) from US$ 31.3 billion (2022).  However, private land sales for the 2024/2025 period have only totaled to 9,600m² which is about 10% of the average annual land sales done over the last five years, from 2019/20 to 2023/24. Indeed, there are still 114,000m² of land under tender, meaning that developers are cautious and that construction expenditure will expectedly decline. That phenomenon has led the Hong Kong Government to double its budget deficit forecast for the financial year 2024/25, as it is extremely reliant on revenue generated from land sales, stamp duty and corporate taxes.  It has also led experts to revalue Hong Kong construction industry’s output at an annual growth rate of 2.6% from 2026 to 2029, with the public sector supporting that growth thanks to investments in transport projects, through a program entitled “Railways and Major Roads beyond 2030.”

Foreign construction companies are attracted to the Hong Kong market as the city also serves as a springboard to gain access to the vast mainland market and the greater Asia-Pacific region.  U.S. exporters of design and build technology and equipment enjoy a good reputation of high quality, advanced and innovative products.   They are well known for providing strong project management skills and sophisticated engineering services.  U.S. construction and engineering firms have successfully participated in major projects in Hong Kong. 

Resources  

Major Trade Shows  
 
Build4Asia, May 6-8, 2026: Build4Asia is a trade show for the Building, Electrical Engineering and Security Industries in Hong Kong which covers every facet of the construction industry from building materials and automation, smart city technologies to total surveillance system. 

Associations and government agencies   

• Hong Kong Construction Association  
• Construction Industry Council  
• The Hong Kong Institute of Architects  
• The Hong Kong Green Building Council  
• Development Bureau  

For more information about this industry sector, please contact:

U.S. Commercial Service, Hong Kong 
Michael Wajntal, Commercial Specialist  
Email: michael.wajntal@trade.gov