Regulatory pressure, higher inflation, and surging mortgage rates have affected the growth of the construction market in the Asia Pacific region in 2022. This coupled with labor shortages and the subsequent delays in project completion have resulted in the collapse of many construction firms, especially in Australia. In H1 2023, the publisher expects the macroeconomic environment to have a significant growth impact on the construction market.
Changes in government policies and spending on infrastructure projects are expected to play a prime role in the revival of the Asia Pacific construction industry in 2023. With India giving major priority to infrastructure development, the 2023 budget is expected to allocate higher investment in the infrastructure sector. In China, Beijing is introducing new policy measures to revive the struggling construction and real estate market in 2023.
Spending on infrastructure projects is expected to further increase in India in 2023
Over the last three to four years, India has announced several infrastructure projects across different segments. From transportation to utility and building various tourism destinations, spending on infrastructure projects has been consistently increased by the Narendra Modi-led national government. This trend is projected to further continue in India from the short to medium-term perspective.
Road, railways, and urban infrastructure projects are projected to remain a priority under the annual budget, which is set to be announced by the Finance Minister on February 1, 2023. Furthermore, over the next few years, an increasing amount of focus will be placed on industrial infrastructure. The spending on infrastructure projects coupled with the decline in prices of construction materials will further assist the growth of the construction industry in India over the next few quarters.-
Along with the infrastructure sector, commercial and residential construction activities are also projected to record strong growth in India. Domestic as well as global players have announced several new data center facilities, which are set to begin construction in 2023. These projects along with the growing housing demand in the country will keep assisting industry growth over the next three to four years.
New policy measures from Beijing to revive the growth of the construction market in China
Ever since Beijing announced the crackdown on the real estate market in 2020, the construction industry has been severely impacted, with many players on the brink of bankruptcy. However, to further revive the growth of its real estate and construction market, the government has announced a series of policy measures.
The new credit policy, for instance, announced by the government in January 2023, aims to drive urban housing sales in the country. To drive housing sales in China, many local authorities announced voucher schemes. Earlier in 2022, the government also announced a pledge of US$29 billion in special loans, thereby allowing construction firms to finish stalled projects.
In 2023, the publisher also expects Beijing to relax restrictions on developer borrowing by rolling back the three red lines policy it announced in 2020. These policy measures, along with others, are projected to revive the struggling real estate market in China, while also supporting the growth of the overall construction industry over the next three to four years.
Interest rate hikes will further accelerate the decline in the Australian housing market
To bring down the inflation, the Reserve Bank of Australia has announced a series of rate hikes, totaling 300 basis points, over the last few months, and the trend is projected to further continue in H1 2023. The consistent increase in interest rates to cool down inflation has also shrunk the borrowing power of consumers. This coupled with high household indebtedness has affected housing sales in Australia.
The decline in sales of new units along with higher construction costs meant that developers and contractors have not undertaken many new projects, thereby affecting the growth of the residential construction market in the country. Building approvals are an indication that new project launches are under pressure due to the current macroeconomic environment. According to the Australian Bureau of Statistics, council approvals declined for the third month straight, leading to January 2023. As the Reserve Bank continues to hike interest rates, consumer borrowing capacity will be further eroded, which in turn will prolong the housing downturn in Australia.
This report provides data and trend analyses on Asian 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.
It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.
This title is a bundled offering, comprising 13 country reports:
Country Report 1 - Australia Construction Industry Databook Series
Country Report 2 - Bangladesh Construction Industry Databook Series
Country Report 3 - China Construction Industry Databook Series
Country Report 4 - India Construction Industry Databook Series
Country Report 5 - Indonesia Construction Industry Databook Series
Country Report 6 - Malaysia Construction Industry Databook Series
Country Report 7 - Philippines Construction Industry Databook Series
Country Report 8 - Singapore Construction Industry Databook Series
Country Report 9 - South Korea Construction Industry Databook Series
Country Report 10 - Sri Lanka Construction Industry Databook Series
Country Report 11 - Taiwan Construction Industry Databook Series
Country Report 12 - Thailand Construction Industry Databook Series
Country Report 13 - Vietnam Construction Industry Databook Series
Scope
Each country report covers the following:
Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027. KPIs covered include the following:
Market size by value
Market size by volume of construction
Number of units
Economic Indicators Cities Construction Data Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
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 (multi family, single family)
Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
Green building by Price point/income level (luxury, mid-tier, affordable)
Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Office (further broken down by Grade A, Grade B, and Grade C)
Retail (further broken down by Grade A, Grade B, and Grade C)
Hospitality (further broken down by Grade A, Grade B, and Grade C)
Restaurant (further broken down by Grade A, Grade B, and Grade C)
Entertainment
Sports facility
Construction stage (new construction, re-development & maintenance)
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) Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Healthcare construction
Educational construction
Public sector
Construction stage (new construction, re-development & maintenance)
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 (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
Construction stage (new construction, re-development & maintenance)
Green Infrastructure Construction: 10- year market size & forecast in value terms Reasons to buy
In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of Asia building and infrastructure construction industry.
Top Ten Cities Construction Value Data-of each country
Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.
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