A recent survey has named Sydney as one of the most expensive cities in the world to build in.
Conducted by Turner & Townsend, the International Construction Market Survey 2017 saw the city come in at number nine.
The survey presents data analysed from 43 markets around the world. Economists worked closely with local experts to analyse input costs – such as labour and materials – and charted the average construction costs per square metre for both commercial and residential projects across all regions and cities.
While Sydney was the only Australian city to rank in the top 10, Melbourne came in at number 20, followed by Perth and Adelaide at numbers 21 and 22 respectively. Interestingly, Perth was the only city in the survey to have experienced a decrease in costs associated with construction.
At the top of the list were New York, San Francisco, Zurich, Hong Kong and London.
The analysis identified a number of challenges facing the construction industry in 2017. Some of the problems being experienced on a global scale include skills shortages, exchange rate pressures, and an acute need to improve productivity.
The Turner & Townsend survey follows the Demographia International Housing Affordability Survey which ranked Sydney and Melbourne in the top 10 most unaffordable cities for housing in the world.
The top 10 most expensive markets to build in:
- New York
- San Francisco
- Hong Kong
- UK South
The full International Construction Market Survey 2017 is available here.