• 11/10/2024

Hong Kong architect industry group urges gov’t to roll out more projects amid job shortage, layoffs

Hong Kong Free Press

Architect industry group appeals to government to roll out projects amid job shortage, layoffs

A group representing Hong Kong architects has appealed to the government to speed up capital works projects and outsource more work to compensate for a dearth of jobs and widespread layoffs in the construction sector.

Construction workers taking rest.
Construction workers taking rest. Photo: Kyle Lam.

“The local architectural practices are undoubtedly facing an extremely difficult time and some of them are already at the tipping point of their survival battle,” chairman of the Association of Architectural Practices (AAP) Dennis Lau wrote in a letter to Secretary for Development Bernadette Linn.

In a reply to HKFP, the bureau said the government would continue to allocate resources to take forward capital works projects, adding that it believed the architectural industry’s woes were a “short-term situation.”

Dennis Lau. Photo: DLN Architects.
Dennis Lau. Photo: DLN Architects.

Citing unfavourable economic conditions and local market challenges, Lau said local architects were facing a “very difficult time” in the wake of the Covid pandemic.

The AAP’s appeal came after it was reported that Lau’s firm, DLN Architects, issued a notice requiring employees to take three unpaid days off each month.

Despite the lifting of property cooling measures this February, the property market had remained “extremely cautious,” with few private projects being launched.

Market sentiment

The government in February axed all extra stamp duties in a bid to revive the city’s property market, following a nine-month losing streak in home prices and mounting pressure to lift the duties imposed a decade ago to curb demand.

Amid a bleak market outlook that curbed developers’ appetites for new plots, Hong Kong saw a record number of six failed land tenders in the 2023-24 fiscal year. The six sites have been rolled over to this year’s land sales programme.

Lau said in Wednesday’s letter that job opportunities were “virtually non-existent,” pointing to China’s embattled property sector.

Secretary for Development Bernadette Linn meets the press on October 30, 2023. Photo: Kyle Lam/HKFP.
Secretary for Development Bernadette Linn meets the press on October 30, 2023. File photo: Kyle Lam/HKFP.

“Many of the local architectural firms have to fight for survival by laying off employees,” Lau said, with some being forced to adopt “unreasonably low fees” when tendering for projects.

See also: Hong Kong suspends residential, commercial land sales amid sluggish market

“This has created a vicious cycle in pushing the consultancy services to a more unhealthy and unsustainable level,” he said.

“At this critical juncture, I would like to urge the government to outsource more consultancy services, resume the suspended projects and speed up the outsourcing procedures to help the local architectural practices.”

‘Short-term situation’

In an emailed reply to HKFP, the bureau said it estimated HK$90 billion in spending on capital works for the current financial year – the average annual level for the coming five years. That represented a 17 per cent increase compared to the last five-year period.

Hong Kong skyline showcasing public housing. Photo: Kyle Lam/HKFP.
Hong Kong skyline showcasing public housing. Photo: Kyle Lam/HKFP.

“This shows that the Government will continue to allocate resources to take forward capital works projects, with a view to improving the living environment of the public, boosting economic growth and enhancing Hong Kong’s competitiveness in the long run,” it said.

The bureau said the architecture sector’s cash flow constraints were a “short-term situation.”

“With the gradual improvement of the general economic environment and the Government’s continued investment in the development of works projects, the outlook for the industry is still bright.”

President of the Hong Kong Institute of Architects Benny Chan earlier told RTHK that developers were cautious when bidding for plots and could not meet the price that the government hoped for.

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https://hongkongfp.com/2024/08/16/hong-kong-architect-industry-group-urges-govt-to-roll-out-more-projects-amid-job-shortage-layoffs/