Hong Kong topped Asia in terms of construction costs in 2014, according to a report published Thursday.
The annual International Construction Costs Report, released by the Dutch design and engineering consulting firm ARCADIS, said that price inflation continued to affect the Hong Kong market in 2014, resulting in its elevated position in the rankings.
The city ranked third worldwide in construction costs, just behind Switzerland and Denmark.
Elsewhere in Asia, construction markets had another strong year in 2014, particularly in Japan where the stimulus associated with one of the three “arrows” of Abenomics has had a significant impact, the report said.
Singapore also saw strong growth throughout 2014, driven by a combination of robust housing markets and high levels of infrastructure spending.
The report also showed that India was the cheapest country in the world for construction.
The report forecast construction costs in Hong Kong would rise 6-8 percent in 2015, slower than the 7-10 percent growth seen last year.
However, the report said, in Chinese mainland, the gradual shift to a consumption-based economy means that the huge growth in construction that has been witnessed over the last 10 years is unlikely to continue in the long term.
Looking ahead, despite the changing nature of the economy, construction investment in China is likely to continue to diversify across both project types and geography, which will sustain relatively strong growth during 2015, according to the report.