Singapore average construction cost fourth highest in Asia: Turner and Townsend
The average construction expense per sqm for Hong Kong clocked in at $4,292, positioning it in 11th position amongst the top ten markets globally. Meanwhile, Singapore’s construction cost averages US$ 3,307 per sqm, rating it 4th in Asia and also 31st worldwide.
In Asia, strong need in well established realty markets like Singapore, Hong Kong, Japan, as well as South Korea faces skills scarcities and even increasing work costs, bring about boosted development expenditures.
Singapore stays sustained by a strong pipeline of building projects steered by housing project, facilities, commercial projects, as well as an emerging biomedical industry. Elsewhere, Japan’s construction project is boosted by a solid backlog of building projects in the lead-up to the World Expo that will be located in Osaka in 2025, while Hong Kong and Landmass China are expected to view a rehabilitation in their building fields complying with the lifting of long term Covid-19 regulations.
Regardless of combined economic conditions, the building expectation for Asia remains to be resilient, according to the latest version of the International Construction Market Research. The annual study by consulting business Turner & Townsend records the average building and construction cost per sqm for commercial, residential as well as industrial projects in 89 markets globally.
The poll even indicates that building event in emerging markets such as India, Indonesia, Malaysia, Vietnam as well as the Philippines is heating up in the middle of considerable financial investments in realty and also expanding expansion of data centres, manufacturing and life sciences.
“Asia’s diversified and ambitious market economies place it in a strong placement to regulate maintained construction growth and draw in financial investment, specifically in industrial, science and modern technology, medical care, transport and realty developments,” claims Cheryl Lum, director and head of data and research at Turner & Townsend Asia.
Tokyo and Osaka are Asia’s most expensive cities for building and construction, with Tokyo at US$ 4,567 ($6,167) per sq m and Osaka at US$ 4,497 per sq m. Across the globe, Tokyo rates 5th, as well as Osaka places 6th in building and construction cost.
Turner & Townsend highlights that Singapore observed the greatest price of construction cost growth in 2022 at 12%. As the marketplace remains to deal with competencies capacity challenges as well as high labour and material expenses, the firm is preparing for building costs to continue to be high, with an improvement rate of 8% projected for 2023.