Hong Kong SAR issues latest policies to support its construction industry

The latest policy address by Hong Kong SAR’s chief executive includes key developments set to impact Hong Kong SAR’s construction industry. Among the developments announced are changes to legislation to improve building safety and management, with proposed amendments to the Buildings Ordinance expected before the end of the year. An amendment bill to further improve building safety is also expected to be introduced in the first half of 2026 after public consultation.

Plans to enhance security of payment in the construction industry were also announced, with the administration confirming it had introduced the Construction Industry Security of Payment Bill. Prohibiting the use of unfair payment terms such as ‘conditional payment’ in contracts, the Bill will also introduce an adjudication mechanism to support the resolution of payment disputes in the construction industry.

Further developments mentioned in the policy address include plans to increase housing supply, with the administration announcing its intention to complete construction of roughly 9500 units in 2025, as part of its plan to complete 30,000 units by 2028.

The administration also confirmed plans to further develop Hong Kong SAR’s Northern Metropolis, intended to be “the new engine” of Hong Kong SAR’s economic development. Development of the region includes the completion of 60,000 units within the next five years and the construction of transport infrastructure - including the Northern Link Main Line, which is scheduled for completion in 2034, and the Northern Metropolis Highway, scheduled for completion in 2036.

Alvin Ho of Pinsent Masons said the recent policy announcements affirmed the Hong Kong SAR government’s commitment to the construction industry.

“The key focuses of the infrastructure investment are to enhance the linkage between Hong Kong SAR and Shenzhen and the city's waste-to-resource capabilities,” he said. “By introducing measures to enhance building safety, streamline payment processes, and boost housing supply, the administration is laying a foundation for growth. These initiatives demonstrate a clear commitment to supporting the construction sector and ensuring its readiness for future challenges and opportunities.”