Despite experiencing significant economic growth, several countries in the Asia Pacific region have considerably lower construction costs than western countries, according to the latest Annual Construction Cost Comparison by EC Harris Research.
Currently in its seventh year, the annual report compares construction costs per square metre (psm) in 56 different countries worldwide against building costs in the south of England.
The report revealed Sri Lanka and India as having the lowest building costs in the Asia Pacific region, 70 percent lower than in the UK.
Singapore and Hong Kong, despite property prices surging over the past year, have maintained their costs at 2010 levels, which is about 10 percent lower than in the UK.
Japan posted the highest building costs at 24 percent above England’s, while Malaysia, the Philippines and Vietnam were among the cheapest in the region, at an average of 54 percent below building costs in England.
“It is evident that as the economies in the Asia-Pacific region continue to grow and their European peers struggle to recover, the region is becoming more and more attractive to property investors,” said Adam Smith, Market Analyst for Ocean Villas Group in Singapore.
“Lower costs and a propensity for growth equals much higher potential returns than alternatives in Europe and the USA.”
“Whilst prime locations such as London and New York remain in high demand, we have already seen a significant number of mid-level investors moving their money out of Europe and the USA into emerging South East Asian economies,” added Smith.
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