A decline in tourism from mainland China and a drop-off in investments have temporarily dampened growth in the Hong Kong economy.
Business confidence started to pick up towards the end of 2016, but there is a new concern surrounding the US elections and its impact on Chinese trade.
Infrastructure spending has been strong, and the Hong Kong Macao Bridge is set to open in 2017, exposing the Western Pearl Delta to trade of goods and services. The Hong Kong section of the express rail link to Guangzhou is also underway.
In the residential sector, private apartment supply is expected to hit a 12-year high as the market looks to capitalise on strong expected price growth. The retail sector in the region remains weak. Recently a number of store closures have occurred as several major leases came up for renewal in the city.
A number of large construction projects, such as the construction of a third runway at Hong Kong airport and the building of a Disneyland theme park, are expected to fuel growth over the course of 2017 and beyond.
With limited development space above ground, a study was undertaken to analyse the viability of increased development of underground spaces. That may yield further development opportunities in the near future.