Singapore average construction cost fourth highest in Asia: Turner and Townsend
the building and constructive outlook for Asia continues to be buoyant Despite mixed economic conditions, according to the latest edition of the International Construction Market Survey. consulting firm Turner & Townsend did an annual survey which shows that charts the average construction cost per sqm for commercial, residential and industrial projects in 89 markets worldwide.
strong demand across asia like in established real estate markets like Singapore, Hong Kong, Japan, and South Korea faces skills shortages and rising labour costs, leading to increased construction expenses.
Tokyo ranked fifth with construction cost at US$4,567 ($6,167) per sq m and Osaka ranked sixth with construction cost at US$4,497 per sq m as per globally benchmark.
The average construction cost per sqm for Hong Kong clocked in at $4,292, placing it in 11th position among the top ten markets globally. Meanwhile, Singapore’s construction cost averages US$3,307 per sqm, ranking it fourth in Asia and 31st globally.
Much highlights by Turner & Townsend that Singapore saw the highest rate of construction cost escalation last year at twelve percent. As the market continues to face skills capacity challenges and high labour and material costs, the firm is anticipating construction costs to remain high, with a growth rate of 8% projected for 2K23.
With a strong pipeline of construction projects driven by public housing, infrastructure, commercial developments, and an emerging biomedical sector, Singapore real estate development is backed up strongly and affirmly. Driven by a strong backlog of construction projects in the lead-up to the World Expo that will be held in Osaka in 2K25, Japan’s construction activity is thriving, while Hong Kong and Mainland China are expected to see a recovery in their construction sectors following the lifting of prolonged Covid-19 restrictions.
The survey also notes that construction activity in developing countries such as India, Indonesia, Malaysia, Vietnam and the Philippines is warming up amid with more affluent investments in real estate and emerging expansion of data centres, manufacturing and life sciences.
“Asia’s diverse and ambitious market economies poised to be in a favourable position to command sustained construction growth and attract investment, particularly in industrial, science and technology, healthcare, transport and real estate developments,” says Cheryl Lum, director and head of data and research at Turner & Townsend Asia.