Labour is more expensive in Singapore, and this is accentuated by the shortage of semi-skilled labour. Prices of commodities such as steel and copper have also risen. -- ST PHOTO: SAMUEL HE
SINGAPORE has been named Asia's second most expensive country to build in after Japan, as a strong economic recovery and sustained demand for construction services supported tender prices.
An international construction cost report released by consultancy EC Harris on Wednesday showed Singapore was also ranked the 10th most expensive country in the world for constructions costs. Its rival city-state Hong Kong was the second most expensive in Asia excluding Japan, and ranked 21st globally.
The survey had excluded Japan - where construction costs are 20 to 30 per cent higher than Singapore and Hong Kong - as EC Harris did not have projects in that country. South Korea came in third in the report, and ranked 25th most expensive in the world. Switzerland took top spot as the most expensive globally.
According to the survey, which benchmarks the cost of building in each country against the United Kingdom, the price of construction in Singapore is nearly 7 per cent higher than in the UK, where costs fell almost 20 per cent from their peak in the previous year.
Hong Kong prices were 7 per cent below the UK benchmark, while China was ranked fifth in Asia and Sri Lanka named the cheapest place to build in Asia. The firm's regional head of of cost and commercial management in Asia, Richard Warburton, saidthat Singapore's relatively strong construction prices is due to a combination of factors such as labour, equipment and materials.
Labour is more expensive in Singapore, and this is accentuated by the shortage of semi-skilled labour. Prices of commodities such as steel and copper have also risen, and although this should impact on cost in all locations, some countries have steeper taxes and less availability of certain materials, he explained.
Singapore's economy, which rebounded sharply in the past six months, also helped to prop up demand for construction services as developers rushed to complete their projects, he said.
