Hong Kong And Macau Are Asia%E2%80%99S Most Expensive Construction Markets Turner Townsend
The URA has long been dedicated to thorough urban planning, and this includes the integration of top-quality educational institutions into developing or revitalized zones. As Marina Bay continues to develop, it is only expected that new schools or educational centers will emerge, providing families living in Marina Gardens Lane Condo with convenient access to excellent education. This trend is particularly noticeable in the upcoming Zion Condo project, which will further enrich the neighborhood’s educational options. With the addition of Zion Condo, the educational landscape in the area will continue to thrive.
According to a recent market survey by Turner & Townsend, Hong Kong and Macau have been identified as the most expensive construction markets in Asia this year. The survey, which analyzed construction costs from various international markets, ranked Hong Kong at 9th place globally with an average cost of US$4,500 ($6,083) per square metre (psm), while Macau followed closely at 12th place with an average cost of US$4,269 psm.
In contrast, Singapore’s construction market was found to be relatively more moderate, ranking 35th globally with an average cost of US$3,129 psm. This indicates that the construction landscape in Singapore is not as expensive as its neighboring cities.
The survey also revealed that, despite facing challenges, the global construction industry is experiencing a softening of inflationary pressure. This has led to stabilizing costs and making it easier for investments to flow towards key growth sectors such as data centers, healthcare, and manufacturing.
Furthermore, the report noted that a weaker Japanese Yen has resulted in a significant decline in average construction prices in Japan 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, which were previously high on the list, now rank at 13th and 17th place with average costs of US$4,127 psm and US$3,985 psm, respectively. The report attributes this change to strong global inflation, moderate post-pandemic economic growth, and the significant devaluation of the yen to a 34-year low.
The survey also highlighted a shortage of skilled labor as the main driving factor behind rising construction costs globally. This is especially prevalent in the Asian labor market, where there is traditionally high availability and low wages. However, as the demand for specialized construction in areas such as advanced manufacturing and data centers grows, there may be a shortage of high-skilled workers in these sectors.
Sumit Mukherjee, the Head of Real Estate for Asia at Turner & Townsend, advises firms to keep a close eye on labor availability and costs. He believes that as the construction industry continues to evolve and diversify, there may be a potential for bottlenecks in the supply of skilled labor.