Hong Kong’s architectural industry has called on the government to expedite public projects to prevent the sector from contracting, cautioning that multiple unsuccessful land bids have led some companies to lay off workers or put employees on unpaid leave.

President of the Hong Kong Institute of Architects, Benny Chan Chak-bun made this appeal on Monday following the failure of at least six land tender exercises to secure a successful bidder since last year.

“I observed that some architecture firms figured out different ways to get through the difficult situation, including natural attrition or laying off employees,” Chan stated.

Analysts attributed the tepid response to a sluggish economy and complex development requirements, which have hampered developers' interest in acquiring new land, South China Morning Post reports.

Chan noted that the decline in private projects this year has had a significant impact on the architectural sector.

Furthermore, as well as architectural firms, contractors and construction workers could also be impacted by a lack of projects.

“We hope the government can launch some of the public projects early to save the industry from a downturn,” he said.

Chan mentioned that he had previously discussed these recommendations with officials during a consultation session for the upcoming policy address.

He said the government still had the opportunity to fast-track certain projects, such as schools and nursing homes for the elderly, as these facilities are essential for society.

The Hong Kong Institute of Architects president went on to say that although the situation was not “very serious” he didn’t know how long it would continue.

“The affected architecture firms are mostly first-tier,” he said.

However, Chan noted that some architectural firms, particularly those that typically handle government projects, were experiencing more stability. 

He anticipated that the downturn might persist for at least one to two years but expected conditions to improve in the long term.

“The Northern Metropolis will be launched in the future which will generate many works, including schools,” he said.

The Northern Metropolis is an ambitious project aimed at transforming 30,000 hectares of land in the New Territories into a major economic hub with integrated housing developments.