RICS response to the Hong Kong Budget 2025-2026

RICS welcomes the Hong Kong Budget 2025-26, which outlines a comprehensive plan to address fiscal challenges and promote sustainable economic growth. We commend the government's commitment to fiscal consolidation and the proposed reduction in recurrent expenditure, which will help restore fiscal balance while minimising the impact on public services and people's livelihoods. The emphasis on innovation, technology, and the development of the Northern Metropolis is particularly encouraging, as it aligns with our vision of fostering a resilient and forward-looking built environment.

Here is our response to the Hong Kong Budget 2025-26:

Northern Metropolis Development: It is encouraging to see the government’s ongoing and planned developments in the northern part of Hong Kong. RICS suggests that the HKSAR government implements the sustainable and smart city concept in the development area, providing concrete examples to strengthen public confidence in the project and stimulate interest from investors and developers.

Land Sales and Flexible Land Use: We welcome the government’s consideration of re-zoning some commercial sites to residential sites and allowing more flexibility in land use, as we suggested in our 2024 Hong Kong policy address recommendations. We further suggest that the government investigate an even more flexible land use policy, allowing the market to adjust to new situations more promptly.

Infrastructure Development: RICS acknowledges the critical role that infrastructure development plays in fostering economic growth and enhancing the quality of life in Hong Kong. To align with global trends in urban development, we suggest the government to integrate more smart technologies into transport systems to improve efficiency and connectivity, and prioritise sustainable infrastructure practices that minimise environmental impact and promote energy efficiency.

Additionally, we urge the government to enhance collaboration with industry stakeholders to ensure that infrastructure projects are executed with the highest standards of quality and innovation.

Capital Works Expenditure: RICS firmly supports the government's efforts to enhance cost control across all fronts and to formulate policies on direct procurement and central procurement. There are considerable works the government can undertake to reduce construction costs in Hong Kong, including streamlining the procurement process, utilising the Alliance Framework, optimising module design, and reinventing the design and construction approval processes. The Development Bureau is diligently working on these areas, and RICS will continue to provide support in formulating these policies.

Education and Talent: RICS supports the government’s intentions and policies regarding the acquisition and nurturing of talent. We strongly suggest that the government recognise world-class global professional bodies and their members in government works to attract talent across the globe and bring in innovative ideas and practices.

Guangdong Province "Professional Title" evaluation mechanism: RICS is pleased to see the first patch of Hong Kong engineering professionals establishing “professional title” in Guangdong province. We urge the government to include international professional bodies and professionals in the mechanism and to support them in obtaining “professional titles” in the Greater Bay Area.

In conclusion, RICS recognises the effort of the government in the Hong Kong Budget 2025-26, for its holistic approach to addressing fiscal challenges and promoting sustainable growth. It is important to the government to build public confidence while attracting foreign investment and professional talents. As we move forward, we remain committed to collaborating with the government to ensure the successful implementation of these initiatives, ultimately benefiting the people of Hong Kong and enhancing the quality of life for all.