Dear Fellow Architects,

Industry Challenges and Call for Government Support

In the past decade, our industry has weathered numerous challenges, from talent shortages and unexpected wage increases to soaring office rents, exacerbated by the pandemic.

The troubling practice of "fee diving" has emerged, with firms bidding below cost, relying on new projects to cover expenses, creating a detrimental vicious cycle in the market. The slowdown in new public and private projects has disrupted cash flow for architectural firms, leading to potential lay-offs and pay cuts.

Recent architecture graduates are encountering difficulty in securing employment due to frozen hiring, signalling a looming talent shortage in the coming years.

The architectural ecosystem extends beyond the architect profession, encompassing interior designers, engineers, consultants, and contractors, showcasing a wider impact on the construction industry. This crisis if continued will have a ripple effect on the entire construction sector, with the demise of architects serving as an early warning system due to their heavy involvement from project inception.

While our optimism for the future rests on government initiatives in the Northern Metropolis and the Greater Bay Area, we foresee the aforementioned challenges will persist for 3-5 years. As such, HKIA urges the Government to accelerate public projects, moving beyond infrastructural projects and light public housing, and to introduce long-term initiatives benefiting public welfare, tourism, and the economy. This would not only safeguard the industry but also benefit citizens in the long run.

Let us work together to navigate through these turbulent times and emerge stronger as an industry.

Sincerely,

Benny Chan
President
HKIA