11:10AM BCIS' Asia survey also reveals staff strains
China is now the sixth most expensive place to build in East Asia. Rapid growth in construction in China is straining resources and fuelling sharp rises in labour and materials costs, according to the BCIS’ new Asia Building Construction survey.
It said 40% of respondents there reported difficulties recruiting staff, in particular bricklayers and plumbers.
Thailand was the only other country experiencing a rise in construction activity and 60% of respondents there reported labour shortages.
Elsewhere in the region, while activity in Singapore and Malaysia remained static, respondents from Hong Kong reported an overall fall in output. Demand in Hong Kong was particularly weak in the public sector. The cost of construction in China is just 39% of that in the Special Administrative Region, according to the BCIS.
China’s strongest sectors are private housing, industrial and manufacturing and non-housing public work. The country has the fastest growing economy, with GDP rising 9.9% in 2005.
The strongest rising output prices were found in Thailand, where 69% of respondents said prices were going up.
Average index of costs/m² of building relative to Hong Kong
Country, with average index of building costs/m²
- Japan 144
- Hong Kong 100
- Singapore 81
- Taiwan 67
- Thailand 43
- China 39
- Brunei 39
- Malaysia 30
- Sri Lanka 26
- Indonesia 23
Source
QS News
