Construction starts down 3% in 2009

Abstract: The value of construction starts in Southeast Asia and Hong Kong slipped 3% for the year despite rebounding 5% in the last quarter of 2009.

The value of project starts in the major construction markets of Southeast Asia and Hong Kong slipped 3% from USD125.3 billion for 2008 to USD120.9 billion for 2009, despite a 5% rebound in the 4^th quarter. The total value of project starts reported by BCI Asia in the combined region of Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam climbed to USD27.6 billion in the 4^th quarter 2009 up from USD26.2 billion in the 3^rd quarter.

In terms of the value of building starts for the year, the education and research category was up 33%; health was up 24%; community and legal was up 33%; office was up 2% and large residential category climbed 2%. The retail and exhibition category was down 31%, transport was down 51% and the hotel category fell 8%. Click here for a regional-overview of construction starts. 

Vietnam recorded the greatest growth in value of construction starts, climbing 36% in 2009 with a surge in infrastructure, utilities and large residential projects. Infrastructure and utilities also bolstered Hong Kong's growth, despite a 5% decline in the value of large residential starts. In other markets the economic downturn had a major impact on construction activity, particularly in Singapore where the value of construction starts fell 37%. Other markets that experienced declines include Malaysia (down 23%), Philippines (down 11%), Indonesia (down 9%) and Thailand (down 6%).