Government projects give lift to construction sector
THE construction sector recovered last year despite uncertainties over the airport project as the number of public works approved by the Government rose.
The gross value of construction work by main contractors in the third quarter of the year, at $19.2 billion, was 13.2 per cent higher than a year earlier.
As well as an increase in public sector construction, the growth was fuelled by a rise in off-site construction works, according to the Census and Statistics Department. The pace of major infrastructure projects also picked up.
Construction output in 1992 was hit by the row between Britain and China over the funding of the new airport.
The hold-up in the awarding of contracts for the airport's core projects delayed the approval of other government projects.
The gross value of construction work performed by main contractors was 5.9 per cent higher in the third quarter than in the second.
The gross value of public sector work totalled $6.4 billion, 49 per cent higher over the year and 5.6 per cent higher over the quarter.
Private sector work, however, was 8.7 per cent lower, at $7.2 billion, than a year earlier.
Renovation work also increased, with general contractors' output $3.9 billion or 14.1 per cent higher than a year earlier.
In terms of value, the most significant type of work continues to be residential projects, including combined residential and non-residential building.
However, output on residential sites, at $4.7 billion, was 8.3 per cent lower than a year earlier.
Transport projects were again the second largest category, accounting for work worth $3.6 billion, 128.6 per cent more than a year earlier.
Commercial building was third. The gross value of work was $1.7 billion, up 5.3 per cent.