Macau has become the second most expensive city in Asia to build in, driven by a 3.5% inflation rate that is set to further increase construction costs, a new report reveals.
According to a report by UK-based property consultancy, Turner & Townsend, at USD4,269 per square meter, Macau’s building costs are nearly five times higher than those in Beijing. Hong Kong remains the most expensive city in Asia for construction, ranking 9th globally at USD4,500 per square meter.
Globally, Macau ranks 12th, with New York topping the list at USD5,723 per square meter across the 91 cities surveyed. Mainland Chinese cities like Guangzhou, Shenzhen, Shanghai, and Beijing were towards the cheaper end of the global rankings, ahead of Indian and Kenyan cities.
The report attributed Macau’s high costs to its construction industry’s limited capacity and the territory’s economic slowdown, which has dampened investor confidence. In contrast, mainland China’s abundant labor force has kept costs low, typically ranging between USD893.9 and USD909.5 per square meter.
“An economic slowdown in China and global trends towards nearshoring are reshaping the Asian market and opening up new opportunities for emerging economies,” the report noted.
The rebalancing of China’s economic dominance and manufacturing sector is a major factor, with the country’s GDP growth expected to slow to 4.6% in 2024 from 5.2% in 2023, according to the IMF. Staff Reporter
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