>

>

Hong Kong and Macau are Asia’s most expensive construction markets: Turner & Townsend

June 19, 2024 10:46 AM SGT

An international market survey of the construction market published by Turner & Townsend reveals that Hong Kong and Macau are Asia's most expensive construction markets to build this year.

Hong Kong was the ninth most expensive construction market globally, with an average cost of US$4,500 ($6,083) per square metre (psm). Macau took up 12th place with an average construction cost of US$4,269 psm.

Singapore’s construction market was relatively more moderate, clinching the 35th spot on the global list. Our average construction cost this year stands at about US$3,129 psm.

Read also: Construction demand to rise to $38 billion in 2024: BCA

The survey results from Turner & Townsend show that while the global construction industry still faces challenges, overall inflationary pressure is softening and stabilising costs, easing investment flow towards key global growth sectors such as data centres, healthcare, and manufacturing.

The report also indicated that a weaker Japanese Yen saw average construction prices in the country decline significantly this year. No Japanese cities were in the top ten list of most expensive construction markets in Asia.

Tokyo and Osaka are now the 13th and 17th most expensive markets to build at US$4,127 psm and US$3,985 psm, respectively. The report cites “strong global inflation, moderate post-pandemic economic growth, and a significant devaluation of the yen to a 34-year low, are key factors behind Japan’s lower overall construction costs this year.”

Most global markets tracked by Turner & Townsend indicate that a scarcity of skilled labour is the most significant factor driving up cost price inflation across the construction markets.

“Firms need to keep an eye on labour. Traditionally, Asian labour markets are known for high availability and low wages, but as demand grows for specialist construction such as advanced manufacture and data centres, there may be bottlenecks of high-skilled workers in these sectors,” says Sumit Mukherjee, head of real estate, Asia, at Turner & Townsend.

Tags:

Turner and Townsend Construction

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

CEO of Bioskin Mathilda Koh pays $14.155 mil for bungalow on Cove Drive

2

The October 2024 BTO will introduce Plus flats and Open-Concept layouts

3

Opportunity to buy rare, freehold retro bungalow on Gilstead Rd for $16.99 mil

4

Properties for sale: HDB shophouse at Toa Payoh Central, ground-floor commercial unit at Kalidasa Avenue

5

8M Real Estate bets on Tanah Merah-Bedok region with $64 mil Sceneca Square buy

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00