Asian region鈥檚 construction market booms in comparison to neighbour Hong Kong

Construction costs in the Asian region of Macau are surging due to a fourfold increase in demand in the market.

Figures compiled by Davis Langdon sister firm Davis Langdon & Seah (DL&S) show that schemes totalling 737,000m2 gained consent in the region last year, up from 163,000m2 in 2002. Last year鈥檚 figure is 36% of that in Hong Kong, yet Macau only has 7% of the population of its Far Eastern neighbour. Work completed has more than doubled in the period, from 103,000m2 in 2002 to 215,000m2 in 2004.

The DL&S report says that prices of raw materials such as cement, sand and aggregates are 20-30% higher than in Hong Kong as a result of the increased demand. Other material such as tiling and paint are about 7% less than Hong Kong, the report adds.

DL&S add that while unskilled labour costs are up to 60% lower than in Hong Kong, skilled labourers such as mechanical and labour trades are in extremely short supply and are normally engaged at Hong Kong premium rates. 鈥淭he booming construction market in Macau has offered an opportunity for both Hong Kong contractors and workers. This has evolved into a unique 鈥渨in-win鈥� situation for the two special administrative regions,鈥� the report concludes.

Source

QS News