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1. Construction Output for the First Quarter of 2005

2. Drainage improvement works in Yuen Long

3. Harbour lobby calls for halt to atrium expansion

4. Land policy looks fine to surveyors

1. Construction Output for the First Quarter of 2005
Hong Kong Government, 17 June 2005

1. The total gross value of construction work performed by main contractors increased by 0.1% in nominal terms from a year earlier to $23.1 billion in the first quarter of 2005, according to the preliminary results of the Quarterly Survey of Construction Output released today (June 17) by the Census and Statistics Department.

2. After discounting price changes, the total gross value of construction work performed by main contractors increased by 1.2% in real terms over the same period.

3. Gross value of construction work in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the 2000 price level.

4. Analysed by type of construction work, the gross value of construction work performed at private sector sites totalled $6.7 billion in the first quarter of 2005, down by 3.3% in nominal terms from a year earlier.  In real terms, it decreased by 2.3%.  The decrease was mainly due to completion of work at some large residential building sites.

5. The gross value of construction work performed at public sector sites decreased by 8.7% in nominal terms from a year earlier to $6.9 billion in the first quarter of 2005.  It decreased by 6.0% in real terms.

6. The gross value of construction work performed by contractors at locations other than construction sites amounted to $9.5 billion in the first quarter of 2005, up by 10.6% in nominal terms over a year earlier.  In real terms, the increase was 10.9%.  Construction work at locations other than construction sites includes minor new construction activities and renovation work at erected buildings and structures; and electrical and mechanical fitting work at locations other than construction sites.

7. Analysed by end-use category, residential building projects accounted for the largest share in the gross value of construction work performed at construction sites in the first quarter of 2005.  The gross value of construction work performed for these projects amounted to $4.8 billion, down by 13.2% in nominal terms from a year earlier.

8. Transport projects constituted the second largest category of construction site work. The gross value of construction work performed for these projects totalled $2.9 billion, representing a decrease of 4.5% in nominal terms from a year earlier.

9. Commercial building projects represented the third largest category of construction site work.  The gross value of construction work performed for these projects was $2.4 billion, up by 42.3% in nominal terms over a year earlier.

10. On a seasonally adjusted basis, the gross value of construction work performed by main contractors decreased by 0.7% in nominal terms in first quarter of 2005 compared with the fourth quarter of 2004.  In real terms, it increased by 0.7%.

11. Table 1(text version of table 1) shows the gross value of construction work performed by main contractors in the first quarter of 2005.  Table 2(text version of table 2) and table 3(text version of table 3) show the revised figures for the whole year of 2004 and the fourth quarter of 2004 respectively.

12. Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time.  The gross value of construction work performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor.  However, sub-contractors' contribution should have been included in the gross value of construction work performed by main contractors for whom they worked.

13. More detailed statistics are given in the "Report on the Quarterly Survey of Construction Output, 1st Quarter 2005".  The report is now on sale at HK$17 per issue.  Both print version and download version of the publication can be purchased online at the Statistical Bookstore, Hong Kong (http://www.statisticalbookstore.gov.hk).  Download version of the publication can be purchased at 75% of its original price exclusively at the online Statistical Bookstore.  Print version if purchased online is also offered a discount, at 85% of its original price at the Statistical Bookstore as well as the Government Bookstore (http://www.isd.gov.hk/eng/bookorder.htm).

For purchase of print version, this can be done through mail order by returning a completed order form which can be downloaded from the C&SD's website (http://www.info.gov.hk/censtatd/eng/prod_serv/forms_index.html). Purchase can also be made in person at the Publications Unit of the C&SD (Address : 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).

2. Drainage improvement works in Yuen Long
Hong Kong Government, 17 June 2005

The Government plans to construct a drainage channel at Cheung Chun San Tsuen, Kam Tin, Yuen Long, to alleviate flooding problems in the area.

The works, which will affect about 6,810 square metres of foreshore and sea-bed, are scheduled to begin around mid 2006 for completion around mid 2009.

A notice describing the extent of area affected is gazetted today (June 17).

The notice together with a related plan can be seen on notice boards posted near the site. The plan can also be inspected at the Lands Department Survey and Mapping Office, 23rd floor, North Point Government Offices and the Yuen Long District Office, Public Enquiry Services Centre, ground floor, Yuen Long District Office Building, 269 Castle Peak Road.

3. Harbour lobby calls for halt to atrium expansion
CHLOE LAI , SCMP 18 June 2005

Two harbour protection lobby groups have called on the Trade Development Council to stop the planned $1.3 billion expansion of the atrium at the convention and exhibition centre.

The groups - Designing Hong Kong Harbour District and Citizen Envisioning @ Harbour - said the expansion would severely damage the Wan Chai waterfront.

Meanwhile, members of the government's advisory Harbourfront Enhancement Committee have reportedly expressed concerns about the expansion - saying it may pre-empt public consultation on the Wan Chai and Causeway Bay waterfront.

Paul Zimmerman, convenor of Designing Hong Kong Harbour District, said: "The waterfront will never be the same: the sea view the public enjoys will be gone forever. It is against the integrated harbour-planning principle."

The proposed extension of the annex highlighted the lack of co-ordination in the government on developments affecting the waterfront, he said.

The Executive Council's approval of the plan was announced on Thursday.

The trade council's plan calls for the atrium to be enlarged to make room for three levels of exhibition space, making the waterfront part of the convention centre. The proposal will be submitted to the Town Planning Board next week.

4. Land policy looks fine to surveyors
FOSTER WONG , SCMP 18 June 2005

The government is unlikely to alter the land application list system after a review expected to be released next week, according to the Hong Kong Institute of Surveyors.

The institute, which has regular meetings with the Lands Department, said it did not expect the government to turn around on its land policy because it would not want to risk destabilising the market.

Its comments follow calls from developers to revamp the system after repeated failures to trigger land sales recently.

But the institute believes the existing system works well and does not think reform is urgent.

"We don't encourage any government intervention in the property market and the market-driven land application list system is a suitable mechanism for Hong Kong," institute president Cheung Tat-tong said yesterday.

"However, we do suggest the government slightly adjusts the system by putting some luxury residential land sites in the list, which have strong demand, up for auction to improve market efficiency."

Under the application list system introduced in 1999, a site is put up for auction only after a developer submits a bid that meets an undisclosed minimum reserve price set by the government.

Thirty-five sites have been offered for auction by the government this financial year, but so far no developer has successfully triggered an auction.

As a result, developers have urged the administration to disclose its reserve price for a site to speed up the sales process.

Yu Kam-hung, chairman of the general practice division council of the surveyors' institute, agreed there was a need to enhance the system's transparency, but he warned that disclosing the reserve price could increase market volatility as the government might be seen to be guiding prices.

A spokeswoman for the Lands Department said: "We are considering various options to facilitate smoothening of the land application list system. An announcement will be made after the review is completed."