Pace of new construction work slows across Asia-Pacific region

(Photo: Fred R/flickr)

The rate of new construction projects slowed slightly in the third quarter of 2021, with new infrastructure works making up falls in new residential and commercial projects, according to a survey of experts and professionals working in the construction sector across the Asia-Pacific region by the Royal Institution of Chartered Surveyors (RICS).

While the pace of total new activity fell from plus-21 per cent in the second quarter to plus-three per cent in quarter three, infrastructure was the only sector to remain in positive territory (plus-13 per cent in quarter three from plus-39 per cent in quarter two) – with energy, ICT and social development revealing the strongest outputs.

Both private commercial (such as office and retail developments) and residential saw small falls in activity over the quarter, down by a net balance of minus-16 per cent and minus-13 per cent, respectively.

RICS chief economist Simon Rubinsohn said although the growth in activity in the construction sector moderated over the summer, it looked to be largely a result of temporary factors.

Rubinsohn continued: “Expectations for workloads remain strongly positive with infrastructure spend, on the back of post-covid stimulus programmes in many cases, continuing to be a key driver of the uplift in output across much of the region.

“A recurring theme however is the challenge presented by supply chain issues which have manifested themselves in difficulties in accessing key building materials and, even more significantly, rising costs.

“This is being compounded in some parts of the region by additional challenges in sourcing skilled labour.”

Read more at Build Australia.