# Southeast Asia building boom (2008)



## haze (Jan 4, 2006)

http://www.bciasia.com/news/index.cfm?CFID=5184406&CFTOKEN=94481296

*Southeast Asia building boom (24 January 2008) *


Abstract: BCI Asia data shows a 45% jump in scheduled building starts for the year ahead in Southeast Asia. 


Scheduled starts for building projects in Southeast Asia are up 45% this year compared to 2007, according to BCI Asia statistics (click here to view full report in PDF format). http://www.bciasia.com/images/news/BCIAsiaBuildingStartsOutlook2008.pdf

Southeast Asia’s surge in scheduled building starts is being driven by demand for transport-related buildings, offices, health facilities and exhibition space in Southeast Asia. Scheduled starts are up 21% in Greater China on strong residential demand.

There has been a major shift in construction starts for 2008 in China away from hotel, recreation and industrial projects towards large residential projects. The reduction in forecast starts for hotel and recreation facilities in China, down 23% and 16% respectively, is not surprising given that most facilities for the Beijing Olympics are already close to completion. The movement towards residential starts (up 44%) away from industrial projects (down 10%) reflects growing affluence in Chinese society.

Forecast growth for large residential projects is strongest in Vietnam with a slew of multi-tower apartment projects slated for sites in and around Ho Chi Minh City. These projects include 11 towers at the SC5 Complex in Binh Thanh District due to start construction in the last quarter of 2008; two 30-storey towers at the Preche Apartment Building in District 2 due to start construction in coming months; and eight towers at The Mark in District 7 due to start construction by year end.

Growth in forecast starts for large residential projects remains strong in Hong Kong (up 91%) and in Mainland China (up 44%), where mega projects with at least half a million square metres of residential floor area are coming on stream.

Across the region, the fastest growing sector is transport (up 235%) driven by a slew of government-backed projects in Thailand, Malaysia and China scheduled to start construction in 2008.

In Thailand, the Bangkok Mass Transit System Public Company Limited intends building nine stations along its new BTS Sky Train Green Route while the Mass Rapid Transit Authority intends building 35 stations along the extension of its Dark Red Route from Rangsit to Mahachai. 

In China, construction starts for transport buildings in 2008 include the stations along the 841-kilometre High-Speed Railway from Guiyang to Guangzhou. Construction of this RMB7 billion (US$845 million) railway is due to start in the first quarter of 2008 and be completed in the fourth quarter of 2013.

Office building starts are forecast to increase 23% across the combined region on strong demand in Singapore, where office rentals have doubled in the last year, and in Vietnam which has suffered from a shortage of office space in recent years often due to delays in municipal licenses for construction on downtown sites in Ho Chi Minh City.

In Vietnam, new projects include 450,000 square metres of office space at the Da Nang Administration Centre due to start construction in the second quarter of 2008 and 96,000 square metres of office space at the Song Han Building Complex in Da Nang due to start by July. In Ho Chi Minh City, office projects include two 18-storey buildings at the Richland Hill Complex in District 9 due to start in 2008.

In Singapore, there is a tendency to mix office space with research and development facilities in new projects, such as Phase 2A of Fusionopolis which is due to start construction in the second quarter of 2008.

Starts for retail projects are up 24% across the region with rapid growth in Vietnam (up 234%) due to large retail components within many of the mixed developments coming on stream. Forecast retail starts are up 126% in Thailand, up 70% in Singapore and up 19% in China. However, forecast retail starts are declining in Hong Kong (down 36%), Philippines (down 18%) and Indonesia (down 13%) where there has been intense construction of shopping malls in recent years.

The forecast for industrial projects has declined 10% across the combined region reflecting caution on the part of large corporations, perhaps in anticipation of reduced demand for Asian exports in the United States. The fall has been particularly sharp in Philippines and Thailand but particularly significant in China. There has been a significant shift back to Singapore, Indonesia and Malaysia as key regions for industrial development: Indonesia for producing, packaging, storing and shipping commodities; Singapore for production of electronics and other elaborately transformed goods; and Malaysia with a mix of facilities servicing production of commodities and more sophisticated goods.

Forecast hotel starts are up only 1% across the combined region with a major shift from Greater China towards Southeast Asia. Vietnam is the hottest market for new hotels with a 302% increase in planned construction starts. A mix of hotels from beach resorts to eco-tourism projects are slated for construction in 2008 across the country. Large hotel projects will be located in the provinces of Ho Chi Minh, Hanoi, Dong Nai, Quang Tri, Quang Ninh, Ninh Binh, KIen Giang, Ha Tay, Da Nang, Binh Thuan, Binh Duong and Ba Ria Vung Tau.

Malaysia is attracting more visitors with large hotels planned for Malacca, Sabah, Kuala Lumpur and Penang. Cebu and Metro Manila are the main hotel sites for the Philippines. While in Indonesia, construction of large hotels is scheduled this year for Bali, Central Java and Greater Jakarta.

The Education/research sector is up 19% across the combined region with a surge in scheduled starts for new universities, schools and research centres in Hong Kong, Singapore, Vietnam, Malaysia and Thailand with governments throwing their weight behind these projects. Forecast starts for recreation projects are surging in similar markets largely due to commitment of the public purse towards these projects.


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## Manila-X (Jul 28, 2005)

Oh alot of buildings being built. One trend I'm noticing with high-rises are the majority of them are condos


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## hkskyline (Sep 13, 2002)

China's economic curbs to slow growth and inflation is expected to have a drastic effect on construction. In fact, there are now news reports of real estate agencies going belly up in a few major cities.


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## Whiteeclipse (Mar 31, 2005)

hkskyline said:


> China's economic curbs to slow growth and inflation is expected to have a drastic effect on construction. In fact, there are now news reports of real estate agencies going belly up in a few major cities.


It's hard to tell because China still a very large rural population which is still moving into the cities, new jobs are being created all year round and investments are still high and rising. The demand for real state will be high for the next 30-40 years for China. Many Chinese starting their own businesses and now the economy is being more based on consumption with the rising incomes.


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## hkskyline (Sep 13, 2002)

Whiteeclipse said:


> It's hard to tell because China still a very large rural population which is still moving into the cities, new jobs are being created all year round and investments are still high and rising. The demand for real state will be high for the next 30-40 years for China. Many Chinese starting their own businesses and now the economy is being more based on consumption with the rising incomes.


The long-term growth trend is expected, but in the short term the government is trying to cool the economy and try to have a soft landing, so in the meantime, the real estate craze is being put to rest ... with some results.


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## Kailyas (Nov 23, 2007)

nice article, looking forward for south asia cities to stand tall among the best cities in the world


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## Adams3 (Mar 2, 2007)

Kailyas said:


> nice article, looking forward for south asia cities to stand tall among the best cities in the world


This is not south asian cities, but south-*east* asian cities. Major difference.


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## alheaine (Jan 11, 2009)

*Metro Manila's Skyline*














































































































^^:banana:
appologies to the owner of the pix.֙ thanx..they're awesome.


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## Republica (Jun 30, 2005)

They recovered well after the 1997 crisis, and they will recover again... Tigers.


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## manila_eye (Aug 12, 2008)

^^ if you are down, there is no other way but to go up.


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## baidu (Jun 20, 2008)

Adams3 said:


> This is not south asian cities, but south-*east* asian cities. Major difference.


southeast asia
why china is here?
when china became a southeast asia country:weird:


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