World Courant
Hong-Kong
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Hong Kong has overtaken Tokyo as Asia’s most costly metropolis to construct property, as rising development costs contribute to a worsening labor disaster, a new market analysis launched by Turner & Townsend proven.
The British-based actual property consultancy forecasts that Hong Kong’s common development prices will rise 4.8% this yr to $4,500 per sq. meter, placing the nation ninth globally out of 91 cities surveyed.
Solely cities within the US and Switzerland scored increased, with New York Metropolis in first place at $5,723 per sq. meter, adopted by San Francisco at $5,489 and Zurich at $5,035.
“Expert labor shortages and steady home demand for the development sector are key elements figuring out Hong Kong’s place in our ICMS this yr,” stated Sumit Mukherjee, head of actual property, Asia at Turner & Townsend.
The survey exhibits {that a} scarcity of expert labor is Asia’s greatest development problem extra broadly.
This was particularly the case in Hong Kong, the place the town’s development business confronted a labor scarcity as the town struggles with an getting old inhabitants.
Based on the Hong Kong Development Business Council, that is the case hole between expert employees is predicted to succeed in 40,000 folks by 2027.
Final yr, the Hong Kong Census and Statistics Division predicted this Hong Kong’s getting old inhabitants would turn out to be even worse amid final yr’s low fertility charges.
It’s anticipated that by 2046 a couple of in three residents might be 65 years or older, which is able to trigger the general labor participation charge to say no.
In the meantime, consultancy PWC stated final yr that the town “vital labor scarcity” was additionally the results of a pointy enhance in emigration and world competitors for expertise. Authorities measures geared toward attracting and retaining home and overseas expertise did little to resolve the issue from September onwards.
Macao, one other particular financial zone of China, ranks second in Asia and twelfth globally, with a mean development price of $4,269 per sq. meter.
In Japan and China
Cities in Japan typically high the ICMS rankings for development prices, in keeping with Turner & Townsend, with the nation beneath continued strain from the nation’s getting old inhabitants and long-term labor scarcity.
Nevertheless, not one of the Japanese cities made the highest 10 of the worldwide rankings in Turner & Townsend’s 2024 research, despite the fact that Tokyo ranked third in Asia, adopted by Sapporo, Osaka, Hiroshima and Fukuoka.
This was because of the devaluation of the Japanese yen, with the financial system seeing solely average progress after the pandemic, Mukherjee stated.
On the backside of the development price survey had been cities in mainland China with considerable labor forces that saved development prices low, the advisory group stated.
A festering actual property disaster has additionally introduced China’s development sector to a digital standstill, driving down demand and prices, the report stated.
“The Chinese language authorities’s response to its financial challenges just isn’t but clear, making the way forward for the market unpredictable and dampening funding confidence,” the report stated.
Hong Kong overtakes Tokyo as the most costly metropolis to construct: Turner & Townsend
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