Published on : Dec 11, 2015
Macau is the second most expensive city in Asia, after Hong Kong, and Singapore being the third, as per the current International Construction Costs 2016 index, which was published by Arcadis, a global consultancy and design firm for built and natural assets. Macau ranked fifth, after New York being the first, followed by London, and Hong Kong, as per the index collating construction cost data for the key 44 cities. As per the study, the MSAR has lesser market pressures, hence inflating costs within the construction sector.
The construction projects for residential housing units, land reclamation works, and entertainment and casino resorts are being highly demanded. On the other hand, the absence of space and labor for fulfilling this demand may rise pressures on prices. As per the information received from the Statistics and Census Service the construction value for 2014 soared up by 63/2% as compared to the previous year. The rise in construction has been attributed to the new entertainment and hotel facilities here. Meanwhile, the construction output in Hong Kong recorded a high in 2014 primarily owing to government investment within metro systems coupled with high-speed rail services, creating labor shortage and raised the cost of labor even higher.
Alan Hearn, the Southeast Asia Arcadis bureau’s head stated that for Asia, the economic slowdown of China and dropping demand in a number of cities, such as Jakarta and Singapore means that the development in the region is predicted to rise with the start of 2016. A report also stated that construction markets in a number of parts of Asia will experience an economic turbulence via China in the forthcoming years owing to infrastructure and housing shortage in the area. Kuala Lumpur, Ho Chi Minh City, Bangkok, Taipei, and Bangalore are the cheapest cities for carrying out construction, as per the same report.