Construction cost forecast to rise 7-8 pc in 2014
Hong Kong which over took Switzerland in 2013 for the top spot as the most expensive construction market in the world is likely to see a further increases in costs for 2014, according to Barclays citing a report by HKET.
The increase in construction costs was mainly driven by increasing material and labour costs, as well as a higher standard for new private buildings.
Based on the RLB data, current construction costs are around HK$1,690-2,230psf for a high-quality residential high rise. With club and landscaping included, construction costs could reach HK$3,500-4,000psf.
Looking ahead, with more new private development, infrastructure construction and a shortage of skilled labour, construction costs are expected to continue to rise throughout the year, at the same pace of the 7-8% recorded in 2013.
Currently the top ten most expensive countries to build in are:
1. Hong Kong