Singapore average construction cost fourth highest in Asia: Turner and Townsend

Singapore continues to be sustained by a solid pipeline of construction projects driven by public housing, framework, industrial projects, and an emerging biomedical sector. Elsewhere, Japan’s construction project is boosted by a strong backlog of construction programs in the lead-up to the Globe Expo that will be held in Osaka in 2025, while Hong Kong and Mainland China are expected to view an improvement in their construction markets following the lifting of extended Covid-19 regulations.

In Asia, solid need in well established property markets like Singapore, Hong Kong, Japan, and also South Korea encounters skills shortages along with increasing work expenses, bring about boosted development costs.

Regardless of blended economic problems, the building overview for Asia continues to be buoyant, according to the current version of the International Construction Market Research. The annual poll by consulting business Turner & Townsend charts the average building cost per sqm for business, household and also industrial plans in 89 markets globally.

The ordinary construction cost per sqm for Hong Kong clocked in at $4,292, putting it in 11th position amongst the leading 10 markets around the world. Meanwhile, Singapore’s construction expense standards US$ 3,307 per sqm, placing it fourth in Asia and 31st around the world.

The poll even notes that construction event in arising markets such as India, Indonesia, Malaysia, Vietnam and the Philippines is heating up in the middle of substantial investments in realty and also growing expansion of data centres, production together with life sciences.

Sky Eden condominium

Turner & Townsend feature that Singapore observed the greatest rate of construction cost escalation in 2022 at 12%. As the market continues to encounter competencies capacity challenges as well as high work and material prices, the firm is anticipating construction expenses to stay high, with a growth rate of 8% predicted for 2023.

“Asia’s diverse moreover ambitious market economies place it in a solid placement to regulate maintained construction growth and also attract financial investment, specifically in industrial, science and also technology, health care, transportation along with realty developments,” says Cheryl Lum, director and director of data and research study at Turner & Townsend Asia.

Tokyo and Osaka are Asia’s priciest 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. Worldwide, Tokyo ranks fifth, as well as Osaka places sixth in building and construction price.

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