Dublin, July 22, 2024 (GLOBE NEWSWIRE) -- The "Asia Pacific Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The Asia Pacific construction market is expected to record steady growth over the medium term. Infrastructure spending by regional governments is expected to increase in 2024. This, coupled with the social housing programs in markets like Vietnam, will support the broader industry growth in the region. Regional firms are also planning to expand their presence in other markets to tap into the high-growth markets.
In China, though, the construction market is expected to remain under pressure in 2024. The funding shortage faced by private construction firms has resulted in project delays, affecting the broader industry growth. However, markets like India, are expected to grow at an accelerated pace due to government spending and private sector investment. Overall, the publisher maintains a positive outlook for the Asia Pacific construction industry over the next three to four years.
South Korean construction firms are eyeing more infrastructure deals across Southeast Asian region in 2024
Daewoo Engineering & Construction is planning to expand its presence in the growing Indonesian market. This comes at a time when there is a high demand for infrastructure in the country, largely arising from capital relocation and economic development. The country has a plan to relocate its capital city from the sinking and overcrowded Jakarta to Nusantara on Borneo Island. This has boosted the growth potential of the construction market in Indonesia. The capital city is expected to cost around US$32 billion and is projected to be complete in 2045.
Daewoo Engineering & Construction first entered the Indonesian market in 2020, when it secured a US$50 million deal to handle piping tasks at the liquefied natural gas site managed by BP in the Tangguh gas field, located in West Papua province. Their role in the Tangguh expansion initiative involved setting up piping infrastructure for the construction of a third liquefaction unit.
The firm is actively seeking infrastructure projects that can draw financial support from the Korean government's official development assistance and engage in public-private partnerships that leverage funding from export credit agencies in South Korea. Furthermore, the firm is eyeing plant construction projects that demand advanced construction technology, where Daewoo Engineering & Construction believes it holds advantages over Indonesian construction firms.
The construction market is expected to record strong growth in Singapore in 2024
The Building and Construction Authority (BCA) expects that construction contracts worth between S$32 billion and S$38 billion will be awarded in 2024. This follows a significant increase from the S$33.8 billion worth of contracts awarded in 2023. The rise in awarded contracts is attributed to higher tender prices, quicker contract approvals for private residential projects, and a boost in public housing projects.
- In 2024, the public sector is anticipated to contribute around 55% of the total demand, with contracts worth S$18 billion to S$21 billion likely to be awarded. These projects include major initiatives like new Build-To-Order flats, the Cross Island MRT Line phase two, infrastructure projects for Changi Airport Terminal 5 and Tuas Port, and significant road and drainage improvements.
- The private sector, on the other hand, is projected to contribute between S$14 billion and S$17 billion in 2024. This demand will come from various sources such as residential developments under the Government Land Sales program, expansions of integrated resorts, redevelopment of commercial spaces, and the development of mixed-use properties and industrial facilities.
Looking ahead, from 2025 to 2028, National Development Ministry projects an annual construction demand between S$31 billion and S$38 billion. During this period, the public sector is expected to contribute S$19 billion to S$23 billion annually, with the majority allocated to building projects and the remaining for civil infrastructure works.
China-based private construction firms are grappling with funding shortage in 2024
Chinese private construction firms are dealing with a massive funding shortage. This shortage makes it tough for them to pay for current projects and start new ones. The reasons for this shortage include crackdowns on risky real estate deals, more focus on debt levels, and tougher lending rules from the government.
The situation has been made worse by the growing debt crisis among property developers and a slowdown in the economy overall. Many private construction firms are struggling to pay back loans and get more money, causing delays and problems with projects. This funding shortage is a big deal for China's construction industry, which is crucial for the broader economy too. If private builders cannot access funding, it could result in a further slowdown of construction activities in the Chinese market.
Chinese leaders are under pressure to help private builders and boost investment in construction. Over the medium term, the ease in credit rules and reduced regulatory burdens can fix the funding shortage and help the construction industry record growth in China.
This report provides data and trend analyses on Asia Pacific construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
Market Data and Insights:
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2019 - 2028.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
- Economic Indicators
Top Cities Construction Data
Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type
- Green building by Key cities
- Green building by Price point/income level
Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office
- Retail
- Hospitality
- Restaurant
- Entertainment
- Sports facility
- Other commercial building construction
- Construction stage
Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
- Manufacturing Plants building construction
- Chemical & Pharmaceutical building construction
- Metal & Material Processing building construction
- Construction stage
Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Other building construction
- Construction stage
Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction
- Transportation infrastructure
- Construction stage
Green Infrastructure Construction: 10- year market size & forecast in value terms
Construction Cost Structure Analysis: 10- year market size & forecast in value terms
- Cost Analysis by Type
- By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
- By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
- By Type of Construction (New, Re-Development)
- By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
- Type of Labour
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