China’s construction industry is expected to develop at a rapid pace over the next few years, according to a new Timetric study.
Compared to other markets around the globe, China is particularly keen on building new structures and residential spaces.
Total investments reached US$1.3 trillion in 2013, compared to US$135 billion about a decade ago.
Residential projects added up to 1.5 billion square metres and accounted for US$910 billion of these new investments, followed by commercial and office buildings.
“This buoyancy reflects a number of factors: continued rapid urbanization and industrialization, population growth, rising household incomes and government investment in expanding and upgrading physical infrastructure,” says Danny Richards, analyst at Timetric’s Construction Intelligence Center.
Such rapid expansion is also driving concern over sustainability. However, with China’s urban population expected to grow over the next two decades, urbanization has become a top priority.
As the country plans to get 60 per cent of the population living in cities by 2020, investments in urban infrastructure, such as new expressways and railways, are essential.
“China also needs to invest in public-funded affordable housing projects,” adds Richards. “To provide 23 per cent of the urban population with affordable housing by 2020, more than 4 million new housing units need to be built every year up to 2020.”