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Construction growth predicted ...

Construction growth predicted to increase

Construction efforts in Asia are to be bolstered over the next four years.

Ongoing growth in the Asian construction sector has been predicted to continue until at least 2016, new data from BIS Shrapnel has revealed.

According to the organisation's Building and Construction in Asia 2012 - 2016 report, the construction industry across the continent is unlikely to reach such hectic levels as seen prior to the downturn, but there will be a gradual ramping up of activity in the coming years.

"The biggest single factor supporting construction activity is the obvious: Asia's economic development process is a key dynamic driving construction activity," commented Adeline Wong, BIS Shrapnel senior project manager. "The development dynamic has elements of a self-reinforcing cycle."

Meanwhile, the company's managing director Robert Mellor argued last month that ongoing small increases in the value of homes across Australia is a much healthier model for the future than a fast recovery spurred by a lack of construction. He claimed this would pose a significant risk of an artificial property bubble forming.

Posted by Steve Douglas

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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