ebulletin

April 1, 2026
Construction Activity Stabilizes Amid Cautious Development Pace

Recent building statistics indicate that overall construction activity remained stable in the latest three-month period, while residential supply continued at a consistent level. However, development momentum showed a shift from a slower start to a more active pace toward the end of the period, reflecting a more measured approach by developers.

Between November 2025 and January 2026, a total of 29 building plans were approved, with residential and mixed-use developments accounting for the majority at 17 projects. The remaining approvals included nine community service developments and three industrial-related projects. In January alone, eight plans were approved, down from 11 in December and 10 in November, suggesting a more cautious stance by developers during the approval stage.

Construction starts presented a more dynamic picture. Over the three-month period, 14 projects commenced, representing approximately 82,370 square meters of residential gross floor area and providing around 1,884 units. Notably, January saw a marked increase in activity, with construction beginning on projects totaling about 1,403 units and over 63,000 square meters of residential floor area. This indicates a degree of acceleration in project execution after a relatively subdued earlier phase.

In terms of completions, 50 occupation permits were issued during the period, covering approximately 3,808 residential units and 115,952 square meters of residential floor area. These figures suggest that overall housing supply has remained stable. Non-residential completions were more volatile, with November recording over 300,000 square meters of floor area, largely driven by the completion of several large-scale projects.

Compared with the preceding three-month period (August to October 2025), the number of approved building plans declined slightly. However, there was no significant drop in residential supply. Instead, construction activity showed a transition from a slower start to a stronger finish, indicating a rebound in execution following earlier adjustments.

Market participants note that these shifts may be linked to the prevailing interest rate environment and broader property market sentiment. Developers appear to be adopting a more cautious and flexible approach in both project launches and construction scheduling.

Overall, the data points to a construction and housing sector that remains resilient despite external uncertainties. While the market has yet to show clear signs of contraction, it is currently characterized by stability accompanied by a cautious, wait-and-see approach among industry stakeholders.

(Reported by Building.hk)