〈Hong Kong Business, Dec 21,2024〉The total gross value of construction works (GVCW) by main contractors rose 4.8% year-on-year to $73.1b in the third quarter of 2024, according to the Census and Statistics Department (C&SD). After adjusting for inflation, the increase was 3.8% in real terms.
Private sector construction dropped 9.2% to $20.2b in nominal terms and fell 11.2% in real terms. Public sector construction increased 29.8% to $30.4b nominally and 30.8% in real terms. Construction at locations other than sites, such as minor works, repairs, and electrical installations, declined 6.6% nominally and 7.0% in real terms to $22.5b.
〈Asian Post, Dec, 20,2024〉Hong Kong's GDP may grow at 2.1% in 2025, driven by weak private consumption from falling real estate and equity prices, according to Natixis.
It also said deflationary pressures in mainland China are driving cross-border spending, which is further dampening local consumption.
Natixis noted Hong Kong’s real estate market remains under pressure despite government interventions aimed at stabilising the sector. Whilst lower interest rates may offer some support, a significant recovery is unlikely without broader economic improvement.
〈Hong Kong Business, Dec19,2024〉The emerging trend of converting underperforming or distressed hotels into student housing in Hong Kong presents a growing investment opportunity, Knight Frank said.
Knight Frank noted this shift is driven by the significant shortfall in student accommodation and the growing demand for affordable living spaces among non-local students.
It also reported a sharp increase in the non-local student population, fuelled by Hong Kong’s initiatives to promote international education.
For example, the admission quota for non-local undergraduates at UGC-funded universities has risen from 20% to 40%. In 2023 alone, 62,079 student visa applications were approved, but only 35,720 on-campus beds were available, leaving a gap of 23,389 beds.
〈RTHK News, Dec18,2024〉Officials said 833 bankruptcy applications were made in November, slightly lower than the 877 petitions logged in October.
November's figure, released by the Official Receiver’s Office, was up 2.3 percent from a year before.
The number of bankruptcy court orders issued last month rose 23 percent year-on-year to 674.
The office also received 72 compulsory winding-up petitions in November, marking a 76 percent year-on-year rise. There were 32 court-issued winding-up orders.
In the first 11 months of the year, 8,409 bankruptcies were logged.
〈Asian Post, Dec17,2024〉Hong Kong's strong household demand is driving the growth of mini storage services as the household-to-business usage ratio has held steady at 76%:24% compared to last year, according to a JLL report.
Despite Hong Kong’s subdued economic growth outlook, 44% of operators expect rental and profit growth of 5% to 10% over the next three to five years.
Moreover, this contrasts with trends observed in Singapore, where business demand for self-storage services has surged by 14%, reflecting a shift in market dynamics.
