(TheConservativeTimes.org) – Hong Kong has now surpassed Tokyo as Asia’s most expensive city to build, according to a new survey done by Turner and Townsend.
The property consultancy company expects Hong Kong’s average cost this year to go up almost five percent to four thousand five hundred dollars per square meter. This has made Hong Kong the ninth most expensive city to build when looking at cities globally.
Cities in the United States and Switzerland were the only cities that ranked higher than Hong Kong. New York City is in first place at five thousand-seven hundred dollars per square meter and second place is San Francisco at five thousand-four hundred dollars per square meter.
Sumit Mukherjee, head of real estate, Asia at Turner & Townsend, said, “Skilled labor shortage and steady domestic construction demand are key influencing factors behind Hong Kong’s ranking in our ICMS this year.”
The survey showed a shortage of skilled labor when it came to Asia’s larger construction projects. This has been true in Hong Kong as well, with the city’s construction facing a manpower shortage since the city has an aging population.
According to the Hong Kong Construction Industry Council, it’s expected to have a skilled labor gap of forty thousand people by 2027. Last year, it was said that Hong Kong’s aging population would get worse as low fertility rates continued.
The consultancy firm PWC said that the city’s significant labor shortage was a result of emigration and global competition for talent.
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