Singapore average construction cost fourth highest in Asia: Turner and Townsend
Tokyo and Osaka are Asia’s priciest cities for construction, with Tokyo at US$ 4,567 ($6,167) per sq m also Osaka at US$ 4,497 per sq m. Across the globe, Tokyo rates fifth, and Osaka ranks 6th in building price.
Singapore continues to be sustained by a strong pipeline of construction ventures driven by public housing, facilities, commercial developments, and an arising biomedical field. Elsewhere, Japan’s construction activity is reinforced by a strong backlog of construction programs in the lead-up to the World Expo that will certainly be located in Osaka in 2025, while Hong Kong and also Landmass China are anticipated to view a rehabilitation in their building and construction sectors following the lifting of long term Covid-19 regulations.
“Asia’s diverse and ambitious market economies place it in a solid position to command maintained construction growth and draw in financial investment, particularly in commercial, science and modern technology, health care, transport plus real estate developments,” says Cheryl Lum, supervisor and head of data and study at Turner & Townsend Asia.
Regardless of mixed financial problems, the building outlook for Asia remains to be buoyant, according to the latest edition of the International Construction Market Research. The annual poll by consulting firm Turner & Townsend records the average building and construction cost per sqm for commercial, non commercial and industrial plans in 89 markets globally.
Turner & Townsend highlights that Singapore saw the highest possible price of building cost escalation last year at 12%. As the market remains to face competencies capacity challenges as well as high labour and material expenses, the firm is expecting installation prices to stay high, with an improvement rate of 8% predicted for 2023.
The survey also notes that building event in developing markets such as India, Indonesia, Malaysia, Vietnam as well as the Philippines is warming up in the middle of significant investments in property and also expanding growth of information centres, production together with life sciences.
The standard building price per sqm for Hong Kong appeared at $4,292, placing it in 11th position amongst the best 10 markets internationally. Meanwhile, Singapore’s building price standards US$ 3,307 per sqm, ranking it fourth in Asia and 31st around the world.
In Asia, strong demand in well established real estate markets like Singapore, Hong Kong, Japan, and South Korea encounters skills shortages and rising labour costs, leading to increased construction expenses.