Urbanisation and the need for sustainable buildings will drive growth in the Asia-Pacific building construction market, despite soaring property prices, according to Frost & Sullivan research.
Green buildings that include smart features to ensure energy-efficiency are likely to attract the highest interest. Market participants, however, must find ways to capitalise on this potential in an extremely competitive market, where buyers are more inclined to purchase buildings that are constructed by established property developers.
New analysis from Frost & Sullivan, Building Construction Market in Asia-Pacific, finds that the market earned revenues of US$494.49 billion in 2013 and estimates this will reach $750.00 billion in 2018.
The Southeast Asia region will offer the highest scope for market expansion due to its burgeoning population, increasing urbanisation, and economic growth in countries such as Thailand, Indonesia, Vietnam, the Philippines and Malaysia.
“The building construction market in the Asia-Pacific will continue to evolve as governments underline the importance of energy efficiency through policies and regulations that encourage the construction of green and smart buildings,” said Frost & Sullivan Energy and Environmental Research Analyst Harpreet Kaur. “The market will also be better organised with the implementation of suitable guidelines for sustainable building construction across the region.”
However, property developers are expected to delay project launches as they evaluate the impact of these government measures. The increase in property prices and intense competition in the market too will hold back construction to an extent.
To ensure the construction of cost- and energy-efficient buildings, create a safe environment, and differentiate themselves from their competitors, major market participants are looking to offer smart propositions. For instance, as tourism will remain an important economic driver in the Asia-Pacific, hoteliers and resort owners are increasingly implementing smart initiatives to stand out.
"While existing cities will continue to strive for environmental sustainability, emerging and new cities will incorporate actionable themes that promote energy efficiency and integration with other markets such as ICT," observed Kaur. "Hence, market participants that provide both green and smart building solutions will have better chances at acquiring business opportunities in Asia-Pacific."
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