Singapore is the most expensive country in Asia and the tenth most expensive country in the world in which to do construction, according to an international report on construction prices.
The International Construction Cost Report released by asset management company EC Harris said that construction in Singapore is 7 per cent more expensive than in the UK. Hong Kong, the second most expensive Asian country and 21st in the the world, is 7 per cent cheaper than the UK, the survey said.
In a major omission though, the report did not include Japan because EC Harris does not have any projects there. Construction in Japan is generally about 20 to 30 per cent more expensive than Singapore.
Third on the list was South Korea, followed by Thailand and China. Sri Lanka was the cheapest country in the world for construction, with prices just 27 per cent of those in the UK.
The report found that the world construction supply chain was shifting to the East, as China and other Asian developing economies continued to grow while the West stagnated.
“We are seeing a two speed recovery in construction costs which closely mirrors the global economy. Where developing nations in Asia and the Middle East seek to fuel GDP growth we are seeing demand for commodities rise and costs increase. In stark contrast, the Western nations are continuing to hold back on construction in order to reduce their debt further which is holding prices in check,” said Mathew Riley, Head of Cost and Commercial at EC Harris. “Over the next decade it is likely that we will see the premium to build in Europe erode as global supply chains shift their priorities to the developing nations. By the time demand returns to the developed nations the ability to build will become much more difficult and potentially disproportionately more expensive.”