Hong Kong’s slide down ranks of cities with highest global construction costs to boost developers
- Average construction cost in Hong Kong stood at US$3,749 per square metre in 2018, an increase of 1 per cent
- The average cost had risen 6.2 per cent in 2017, placing city behind only London and Zurich
Hong Kong moved down two places in the ranks of cities with the highest average cost of construction globally in 2018, according to international project manager Turner and Townsend. The city’s average cost of construction rose by just 1 per cent, contributing to a slip from third place in 2017 to fifth last year.
The average construction cost had risen by 6.2 per cent in 2017, placing Hong Kong behind only London and Zurich. Last year, affected by the US-China trade war, it stood at US$3,749 per square metre.
The slower growth rate is expected to boost developers and builders amid a climate of uncertainty.
“This is good news for developers, particularly mid to small sized ones, as the city’s housing market has become dormant since last year. They are not sure where it is heading, even though we have seen signs of recovery recently,” said Vincent Cheung, managing director of Vincorn Consulting and Appraisal.
“The decline in average construction cost is mainly due to the price of building materials. Steel, for example, has been falling as the global economic climate sours,” Cheung added.