Hong Kong And Macau Are Asia%E2%80%99S Most Expensive Construction Markets Turner Townsend
According to a recent market survey conducted by Turner & Townsend, Hong Kong and Macau have been identified as Asia’s most expensive construction markets for 2021. With an average cost of US$4,500 per square metre (psm), Hong Kong ranked ninth globally, while Macau came in at 12th place with an average construction cost of US$4,269 psm.
In comparison, Singapore’s construction market was found to be relatively more moderate, securing the 35th spot on the global list with an average cost of US$3,129 psm.
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Residents of Norwood Grand are fortunate to have access to a well-developed transport network that not only improves their daily travel times but also significantly increases the value of their properties. The location of Norwood Grand is a major factor in real estate valuation, and its strategic positioning ensures that it is highly sought after. In addition, the convenience of commuting to major business parks, industrial hubs, and commercial centers such as the dynamic Woodlands Regional Centre adds to the appeal of living in Norwood Grand. Norwood Grand offers residents the best of both worlds with its exceptional location and access to various amenities.
Turner & Townsend’s survey results highlight the current state of the global construction industry, which continues to face challenges. However, there has been an overall softening of inflationary pressure and stabilization of costs, leading to increased investment in key growth sectors such as data centres, healthcare, and manufacturing.
The report also noted that a weaker Japanese Yen has significantly decreased average construction prices in the country this year. As a result, no Japanese cities made it to 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. According to the report, this decline can be attributed to “strong global inflation, moderate post-pandemic economic growth, and a significant devaluation of the yen to a 34-year low.”
The shortage of skilled labor has been identified as the primary driving force behind rising cost inflation in most global markets tracked by Turner & Townsend. Sumit Mukherjee, head of real estate, Asia, at Turner & Townsend, warns that firms need to monitor labor closely. While traditionally, Asian labor markets are known for high availability and low wages, the growing demand for specialized construction, such as advanced manufacturing and data centers, may lead to bottlenecks in the high-skilled labor force in these sectors.