Lack of projects pushes architects to 'tipping point'

Stacy Shi

Architects have appealed to the government to provide more consultancy contracts and reopen delayed projects, warning that their profession is at the tipping point for survival.

In a letter to Secretary for Development Bernadette Linn Hon-ho, Association of Architectural Practice chairman Dennis Lau Wing-kwong said his profession has been facing hardships since the pandemic.

Despite removing property cooling measures, the market has remained "prudent" with only very few private housing projects being developed, according to Lau.

Coupled with "virtually nonexistent" job opportunities from mainland projects, which used to be a major source of business in the local sector, he said many architectural firms have experienced a wave of layoffs and the industry is "already at the tipping point of surviving."

He urged the government to "outsource more consultancy services for local architects and resume suspended projects."

Benny Chan Chak-bun, head of the Hong Kong Institute of Architects, said the profession is unsure whether it can ride out the turmoil and hopes the government provides assistance.

Chan expressed concerns that the broader industrial chain, including contractors and frontline workers, will also be affected and potentially deter newcomers to the industry.

He called for timely counter-cyclical measures, suggesting the government facilitate recovery of the industry by building additional facilities, such as elderly care homes, swimming pools and indoor recreation centers.

But Andrew Lam Siu-lo, deputy chairman of the Legislative Council's development panel, said pushing forward single projects would be of limited help and it would be difficult for authorities to apply for Legco funding "on the vague grounds of saving the industry."

Lam suggested the government tackle root causes, such as introducing more government-guaranteed loans or the Hong Kong Monetary Authority discussing credit relaxation with the banking sector.

The Development Bureau said it believes the downturn in business turnover and pressure on cash flow are short-term issues and the profession's outlook remains positive with the gradual improvement of the broader economic environment and the government's continued investment in development projects.

It added that the estimated capital projects expenditure for the 2024-25 fiscal year and the next five years should be about HK$90 billion per annum, representing an increase of about 17 percent over the annual average of HK$76 billion in the past five years.

stacy.shi@singtaonewscorp.com