The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - LAND LEASE DEVELOPMENT SUMMIT 8 DAYS TO GO
8 DAYS TO GO - LAND LEASE DEVELOPMENT SUMMIT
REGISTER NOWREGISTER
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
48
print
Print
OtherMon 21 May 18

Where is the Most Expensive Place to Build in 2018?

c992ed33-cd3c-4176-8b69-697a6f53be55

The dark cloud of the global financial crisis appears to be lifting over the world’s construction industry, and a new report reveals growing optimism in a strengthening global market.

Sydney and Melbourne were among the cities where building activity was regarded as “hot” due to the high number of projects, as revealed in Turner & Townsend’s International Construction Market Survey 2018.

And Perth was one of only two markets (Muscat was the other) that saw a fall in construction costs.

New York City remains the world’s most expensive place to build with an apartment block costing an average of US$3900 ($5194) a square metre.

San Francisco took second spot on the list with construction costs of US$3736 ($4969) per square-metre, followed by Hong Kong at US$3703 ($4925). The top five are rounded out by Zurich and London.

Locally, Sydney was considered the most expensive city for construction, coming in at ninth place on the global tally, while Melbourne ranked 19, Brisbane at 21 and Perth at 23.

Sydney and Melbourne were considered “hot,” according to the report, while Brisbane is “lukewarm” and Perth is “cold".

Related reading: ‘Green’ Concrete Set to Revolutionise the Construction Industry


Turner & Townsend economist Gary Emmett said construction in Australia is entering another growth phase.

“Which is set to continue until the end of this decade led by road and rail projects, commercial, health, retail, defence and hotel sectors,” Emmett said.

“Sydney and Melbourne are witnessing strong growth in financial services, and real estate, with 17 per cent jobs growth during the year. Unemployment has fallen to 5.4 per cent,” the report states.

Globally, Emmett says this is the strongest construction year seen since the global financial crisis.

“Since the GFC, growth amongst the major advanced economies averaged half the pace of the previous ten years,” Emmett said.

Related reading: Federal Budget 2018: Infrastructure, Investment and Build to Rent


Australia's infrastructure surge ‘positive’

With a spike in infrastructure spending, the report pegs Australia’s economy in 2018 as positive.

“Major road and rail projects are ramping up, boosting the local economies and demand for trade skills. Tunnelling is a focus. Sydney Metro Rail is delivering 15 kilometres of tunnels, and Westconnex, a mostly underground 33 kilometre roadway, is under way.”

The report reveals activity increased in 21 of the 46 international markets surveyed.

Australia, USA, Europe, Japan and China experienced a synchronised activity upswing, with global construction costs expected to rise 4.3 per cent in 2018, following a 4.1 per cent increase in 2017.

On the global front, several European economies are rapidly expanding including Spain, France, and Italy. The European economy continues to strengthen, growing by 2.6 per cent at the end of 2017.

Global construction costs are expected to rise 4.3 per cent in 2018 following a 4.1 per cent rise in 2017.

OtherRetailInfrastructureHotelBuild-to-RentInternationalAustraliaConstructionConstructionOther
ADVERTISEMENT
TOP STORIES
Exclusive

No Cookie Cutters: Finding Feasibility in HAFF Projects

Patrick Lau
6 Min
Exclusive

Brisbane Transaction Activity Steams Ahead for A-Grade Residential

Taryn Paris
5 Min
Exclusive

Starchitect Ivan Harbour on the Power of Small Spaces

Taryn Paris
6 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
View All >
Local MONNO 111 Lorimer BTR under construction
Build-to-Rent

Local Partners MONNO for $350m Docklands BtR Tower

Leon Della Bosca
Qld Affordable Housing New Strategy hero
Affordable & Social Housing

Qld Unveils Affordable Housing Supercharge Strategy

Phil Bartsch
the plans are for a four-storey development with 20 apartments at 52 The Parade, Norwood just down from the 1851-built pub The Colonist, just outside the city centre.
Residential

Bid to Downsize Norwood Shoptop Apartment Scheme

Renee McKeown
Storeys would reduce, but not the number of apartments under the revised plans for the site of a former Norwood service …
LATEST
Local MONNO 111 Lorimer BTR under construction
Build-to-Rent

Local Partners MONNO for $350m Docklands BtR Tower

Leon Della Bosca
3 Min
Qld Affordable Housing New Strategy hero
Affordable & Social Housing

Qld Unveils Affordable Housing Supercharge Strategy

Phil Bartsch
3 Min
the plans are for a four-storey development with 20 apartments at 52 The Parade, Norwood just down from the 1851-built pub The Colonist, just outside the city centre.
Residential

Bid to Downsize Norwood Shoptop Apartment Scheme

Renee McKeown
2 Min
Councils can access new infrastructure funding in return for speeding up development assessments.
Policy

NSW Unveils $200m Infrastructure ‘Carrot’ for Councils

Patrick Lau
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/where-is-the-most-expensive-place-to-build-in-2018