Overview
- The quality of Hong Kong's design expertise on a wide range of building types and development projects is comparable with the best in the world.
- Hong Kong is a leading expert in high-rise design, slope design, high-density design and designing with space constraints. It is renowned for the high-rise buildings typified by the Central skyline, which showcases the versatility of Hong Kong's architects.
- The exports of professional architectural services play a prominent part in Hong Kong's architecture industry - many Hong Kong companies are involved in residential development projects, hotels, commercial centres, and large scale urban planning and infrastructure projects around the region, including especially the Chinese mainland.
- Hong Kong's exports of architectural, engineering and other technical services tripled from HK$1,035 million in 2005 to HK$2,233 million in 2010.
Industry Data
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Dec 2011
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Establishments
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Employment
|
|
Architectural, surveying and project engineering services related to construction and real estate activities
|
1,962
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24,564
|
Sources: Employment & Vacancies Statistics, Census and Statistics Department
Range of Services
Architects perform a diversity of functions which can be broadly grouped under three categories, namely planning, design, and development.
Planning stage
At the outset, a design plan is required to set up the project, commonly referred to as a master plan or concept design. It is the initial creative part of the assignment.
Design stage
Once a master plan or concept design has been devised, detailed design drawings are prepared for submission to the necessary government departments for approval. Construction drawings and specifications are then prepared for construction purposes. Knowledge of local rules and regulations is important in this stage.
Development stage
This stage is primarily associated with the supervision of construction work. It is usually the longest and most involved part of the project. Hong Kong’s architectural firms are renowned for their project management expertise, giving assurance to effective control over quality, cost and project time.
Service Providers
All practitioners have to register with the Hong Kong Institute of Architects (HKIA). There were over 3,100 registered members as of February 2012. Most of the architect firms in Hong Kong are locally owned. Attracted by the business opportunities in the region, a number of foreign architects have come to work in Hong Kong.
Exports
Many overseas projects for Hong Kong architects are assigned by Hong Kong-based companies investing overseas, and the Chinese mainland is the largest export market for Hong Kong's architectural services. In recent years, the Middle East has attracted many Hong Kong architects as well. For example, leading Hong Kong architectural firms, such as P&T and Aedas, have established presence in the Middle East to tap the market.
Hong Kong's exports of architectural, engineering and other technical services increased by 4.6% YoY to HK$2,233 million in 2010, doubling that in 2005.
HK$ million
|
|
2008
|
2009
|
2010
|
|
Exports - Architectural, engineering and other technical services
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3,193
|
2,134
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2,233
|
|
Share of total services exports (%)
|
0.4
|
0.3
|
0.3
|
|
YoY growth (%)
|
65.2
|
-33.2
|
4.6
|
Sources: Report on Hong Kong Trade in Services Statistics for 2010, Census and Statistics Department
Industry Development and Market Outlook
Increasing local opportunities for architectural firms
Since the ten major infrastructure projects were announced in 2007, the local demand for architectural services has shown signs of increase. In addition, with the government undertaking revitalisation of heritage sites, a lot of business opportunities are being brought to Hong Kong architects and construction engineers.
In the 2012-13 Budget, Hong Kong government reiterated its commitment to infrastructure investment, including the Hong Kong-Zhuhai-Macau Main Bridge, the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Kai Tak Development Plan Stage 1. A record of HK$62.3 billion will be allocated on infrastructure investment in FY2012-13, up from HK$58 billion in FY2011-12.
Urbanisation in China drives up demand for architectural services
In the period under China’s 12th Five Year Plan (FYP), the urbanization rate will advance at the annual rate of 1% to 51.5% in 2015. With more than 13 million people moving from the rural areas to the cities every year, more construction projects are expected. Further, according to Li Bingren, the chief economist at the Ministry of Housing and Urban-rural Development, China will speed up urban infrastructure investment, spending RMB 7 trillion (US$ 1.1 trillion) over the period. It is expected that such infrastructure expansion, which covers housing, rural infrastructure and transport infrastructure, will bring enormous opportunities to architects.
In addition, the continuous development of small- and medium-sized cities in china, which will strengthen the economic hinterland of larger cities, will further spur demand for high-end consumption, housing, hotels and office buildings in both larger cities and their satellite cities, generating business opportunities for Hong Kong architectural firms.
Hong Kong architectural firms in the Mainland market
Hong Kong architectural firms started entering the Chinese mainland market in the late 1970s. Hong Kong architects, who excel at projects requiring advanced technical requirements and complexity, have been involved in designing landmark buildings and multi-purpose complexes in major cities. They have also drawn up the blueprints for upmarket residential developments as well as “green” buildings in smaller cities.
The common practice of Hong Kong architectural firms entering the mainland market is to cooperate with local design institutes. The mainland design institutes assist the Hong Kong partners in understanding and complying with the planning and building approval processes.
On the other hand, Hong Kong architects provide input on advanced building design and technology. Hong Kong architects also have expertise in contract management and preparing tender documentations in accordance to international practices.
There were 416 Hong Kong, Macau, or Taiwan-funded construction service enterprises operating on the Chinese mainland as at the end of 2010 (with 121,600 employees), of which 99 were wholly owned. In addition, there were another 331 foreign-invested construction enterprises operating on the mainland (with 98,000 employees), and 95 of them were wholly-owned.
As at October 2011, 412 HKIA members obtained qualifications on the Chinese mainland, and 169 of them sat to pass the practicing examination in Guangdong. On the other hand, 380 mainland architects are qualified as HKIA members.
To apply as a wholly-owned construction and engineering design enterprise, Hong Kong funded companies have to comply with capital requirements and restrictions regarding the proportion of Chinese-qualified architects or engineers employed in the enterprise (for details please see CEPA section below). In addition, Hong Kong suppliers can set up wholly-owned construction engineering cost consulting enterprises. Besides, they are allowed to wholly acquire construction enterprises on the Mainland under CEPA.
Besides regular businesses, Hong Kong architects are also contributing their expertise in the Chinese mainland’s development on a voluntary basis. For example, HKIA has formed a working group comprising Hong Kong, Macau and mainland architects to work on various reconstruction projects in Sichuan after the 2008 earthquake, including designing and building schools, hospitals, and community centres. Wuzhiqiao (“endless bridge”), a Hong Kong charity, recruits Hong Kong architects and university students to design and build bridges in rural areas on the Chinese mainland every year.
Green Building Boom
Ongoing awareness of environmental protection leads to an increasing demand for green buildings. For example, the Buildings Energy Efficiency Ordinance enacted in 2010 specifies the energy efficiency design standards for four types of building services installations, and requires certain buildings to conduct energy audits. With the full implementation of the new legislation expected in September 2012, there will be more business opportunities for related professional services.
On the other hand, the Hong Kong Green Building Council launched Building Environmental Assessment Method Professional (BEAM Pro) programme in April 2010 to provide industry professionals trainings on green building. As at March 2012, 1,233 practitioners from the building industry were accredited as BEAM Professional and 500 of them were from the architecture sector.
Apart from Hong Kong, the Chinese mainland and other Asian countries are also going green. On the Chinese mainland, it is estimated that total area of energy-saving buildings has exceeded 4.8 billion sqm. Dongtan Eco-City in Shanghai, for example, aims to create a whole city that will be as energy-efficient as possible. The Chief Planner of the Ministry of Housing and Urban-Rural Development said in November 2011 that currently only less than 5% of the 2 billion sqm new erected building is energy-efficient, and China will continue to promote the construction of energy-efficient building. On the other hand, Masdar in Abu Dhabi also aims to be a carbon-free city, relying entirely on renewable energy sources.
The Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)
Under CEPA, construction professional services comprise architectural services, engineering services, integrated engineering services, urban planning and landscape design services (except overall urban planning services).
In February 2004, the Hong Kong Institute of Architects (HKIA) reached an agreement with the National Administration Board of Architectural Registration on mutual recognition of qualification by examination. According to the Agreement, Hong Kong's architects with a minimum of 5-year experience can obtain the mainland's Class I registered architect qualification after attending a 14-hour training session, and passing a test and an interview. The first examination for Hong Kong architect took place in Shenzhen in May 2004, and as of October 2010, a total of 412 Hong Kong architects had been awarded the qualification.
Currently, foreign-owned construction and engineering design enterprises can set up wholly-owned or joint venture entities on the Chinese mainland. As stipulated under Article 15 of Decree No. 114 of the Ministry of Construction (MoC), i.e., Regulations on Administration of Foreign-Invested Construction and Engineering Design Enterprises, however, there are strict requirements on the number or proportion of Chinese-qualified architects, engineers and technical staff with relevant design experience on the staff of these enterprises (for a wholly-owned construction and engineering design enterprise, foreign service providers who have been qualified as certified architects or engineers in China shall not be fewer than 1/4 of the total certified professionals under the qualification grading criteria; for a joint-venture enterprise, the requirement is at least 1/8). CEPA offers more relaxed access conditions for Hong Kong service suppliers (HKSS) by allowing them to employ mainland-registered professionals to fulfill the requirements.
Further, in assessing the qualification of construction and engineering design enterprises and urban planning service enterprises set up by HKSS, the performance of the enterprises both in Hong Kong and the mainland will be taken into account. It also applies to urban planning and landscape architectural services (except general urban planning), in assessing the qualification of a joint-venture urban planning service enterprise set up by two or more HKSS.
For joint-venture construction and engineering design enterprises, there is currently a requirement that the proportion of the total capital contributed by the mainland partners to the registered capital should be no less than one-quarter. Thanks to Supplement V to CEPA, this restriction has been removed since January 2009, thus offering HKSS greater flexibility in partnering with their mainland counterparts.
Under CEPA Supplement VII, Hong Kong professionals, who have obtained the Mainland's registered Class I architect qualification or Mainland's registered Class I structural engineer qualification, are allowed to act as partners in setting up construction and engineering design offices in the Mainland in accordance with the qualification requirements. For the enterprises, there is no restriction on the ratio of the number of the Hong Kong partners to the Mainland partners, the ratio of the total capital contributed by the Hong Kong partners to that by the Mainland partners, and the residential period in the Mainland for the Hong Kong partners.
Currently, foreign professional and technical staff employed by a foreign-invested construction and engineering design enterprise or urban planning services enterprise must reside on the mainland for a cumulative period of no less than six months in a year. This residency requirement for Hong Kong professional and technical staff has been relaxed under CEPA, treating their period of residence in Hong Kong as their period of residence on the mainland. The residency requirement has been waived since 2004 for Hong Kong permanent residents employed as engineering technical staff and economic managerial staff in Hong Kong-funded construction enterprises on the Mainland.
Supplement VIII to CEPA further lifts the barriers for Hong Kong companies tapping the mainland market, through allowing Hong Kong professionals who have obtained the mainland’s Class-1 registered architect qualification or Class-1 registered structural engineering qualification to be recognized as registered practitioners for the purpose of declaration of engineering design enterprise qualifications within Guangdong, in accordance with the relevant Mainland regulations.
Additionally, Supplement V to CEPA also enhances the participation of Hong Kong professionals who have obtained the mainland's supervision engineer or urban planner qualification in the concerned services sectors in Guangdong Province, as they will be allowed to register and practise there, regardless of whether they are registered practitioners in Hong Kong or not.
As at 2 March 2012, there were 75 approved HKSS in the sector of construction professional services and construction and related engineering services, out of a total of 79 applications.
