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

The The Myst Bukit Panjang also provides easy access to nearby shopping malls such as Junction 10, HillV2 and Bukit Panjang Plaza, grocery stores, banks and healthcare facilities. Residents also get to enjoy multiple recreational amenities built into the development such as the jogging path, swimming pool and electric BBQ pits.

Despite the current economic slowdown, the outlook for Asia’s construction industry is positive, with continued growth expected over the next few years. Singapore and Hong Kong have been identified as the most active markets in terms of commercial, residential and industrial construction, making them attractive destinations for international investors.

Cheryl Lum, director and head of data and research at Turner & Townsend Asia, notes that Asia has “diverse and ambitious market economies” that create an ideal environment for sustained construction growth and investment across multiple industries. Despite the current economic slowdown, the outlook for Asia’s construction industry remains positive: Singapore and Hong Kong are the most active markets in terms of commercial, residential and industrial construction, while emerging markets such as India, Indonesia, Malaysia, Vietnam and the Philippines are beginning to see newfound activity.

The International Construction Market Survey, an annual report from consulting firm Turner & Townsend, highlights Japan and Singapore as the two priciest cities for construction in Asia. Tokyo ranks fifth, with construction cost per sqm at US$4,567 ($6,167), and Osaka is sixth, at US$4,497. Hong Kong’s cost per sqm is US$4,292, making it eleventh amongst the top ten markets globally. Singapore’s construction cost averages US$3,307 per sqm, ranking it fourth in Asia and 31st globally.

A range of factors, including employment shortages, rising labour costs and increasing material expenses, have led to higher construction expenditures in established real estate markets. Last year, Singapore saw the highest rate of construction cost escalation at 12%, and Turner & Townsend is anticipating construction costs to remain high, with a growth rate of 8% projected for 2023.

Japan’s construction activity is expanding due to an abundance of projects in the lead-up to the 2025 World Expo in Osaka. Similarly, Hong Kong and Mainland China are expected to experience a construction sector rebound as Covid-19 restrictions are lifted.

Overall, Asia’s construction market is proving to be buoyant despite mixed economic conditions. The region’s projected growth rate and increased investment make it an appealing destination for international investors looking to capitalise on attractive opportunities.