Singapore ranked second on the list of the most expensive places to build in Asia, according to the 2011 International Construction Cost Report released by EC Harris.
Coming in behind Japan and sharing the spot with Hong Kong, Singapore is also among the top 20 most expensive countries to build worldwide, the report added.
According to the recent survey, the building prices in Asian countries have increased more than in western countries in the past year, leading to higher overall rankings for Asian locations.
“Singapore is experiencing a boom in construction activity brought about by the confidence in the market leading to a demand for construction in the tourism, commercial and residential sectors,” said Tim Robinson, Head of Cost and Commercial Management in Asia at EC Harris.
“Construction costs in Asian cities such as China, India, Vietnam and Indonesia offer a significant price advantage over European and Middle Eastern countries. This is driven by the availability of cheaper labour.”
“It will be interesting to see how global design standardisation, higher commodity prices, currency appreciation and rising levels of inflation could result in a levelling out of the international construction index,” he added.
Additionally, South Korea and Macau comprised the top five most expensive countries across the region, while China took the seventh position in the region and the 47th spot worldwide.
Sri Lanka and India were named the cheapest places to build both in Asia and worldwide.
Meanwhile, the global report revealed Switzerland as the most expensive country to build, with costs approximately 90 percent higher than Hong Kong.
Source : PropertyGuru – 8 Sep 2011