Hong Kong has surpassed Tokyo as the most expensive city in the world to build, according to a recent report by construction consultancy firm Turner & Townsend. The report, which compares construction costs in 90 cities around the world, found that Hong Kong now has the highest construction costs, with an average cost of $3,900 per square meter, compared to Tokyo’s $3,500 per square meter.
The rise of Hong Kong as the most expensive city to build can be attributed to a number of factors. One of the main reasons is the high demand for construction projects in the city, due to its booming economy and population growth. This has led to increased competition among construction firms, driving up costs.
Additionally, Hong Kong’s limited land availability and strict building regulations have also contributed to the high construction costs. The city’s hilly terrain and densely populated urban areas make construction projects more complex and expensive, as developers often have to deal with challenges such as unstable ground conditions and limited space for construction equipment.
The report also highlights the impact of global economic factors on construction costs. The ongoing trade tensions between the US and China have led to fluctuations in the prices of construction materials, such as steel and aluminum, which have a direct impact on construction costs in Hong Kong.
Despite the high construction costs, Hong Kong remains a popular destination for real estate developers and investors due to its strong economy, strategic location, and vibrant business environment. The city’s skyline is constantly changing, with new skyscrapers and luxury residential developments being built to meet the growing demand for commercial and residential space.
While the high construction costs in Hong Kong may deter some developers, the city’s reputation as a global financial hub and gateway to China continues to attract investment in the real estate sector. With ongoing infrastructure projects such as the Hong Kong-Zhuhai-Macau Bridge and the high-speed rail link to mainland China, the demand for construction services in Hong Kong is expected to remain strong in the coming years.
Overall, the rise of Hong Kong as the most expensive city to build underscores the city’s position as a global powerhouse in the real estate and construction industry. Despite the challenges posed by high construction costs, developers and investors continue to see the city as a lucrative market for future growth and investment.