Research and Markets Releases Report on Construction Trends in China

By Joel ScanlonApr 4 2012

Online research website, Research and Markets has released a report titled “Construction in China-Key Trends and Opportunities to 2016: Affordable Housing and a CNY7.0 Trillion Infrastructure Budget to Propel Growth”.

According to the report China holds a major portion of the market amongst emerging countries due to the presence of manufacturing industries that are growing immensely, cheap labour and the fast emerging construction industry. The country achieved a CAGR of 23.24% and was able to achieve substantial foreign direct investment.

The construction industry in China has grown from CNY5.1 trillion in 2007 to CNY11.8 trillion in 2011. A major part of this growth was achieved through the eleventh five-year plan from the government in which CNY3.3 trillion was allocated for the development of infrastructure. Apart from this the country gained substantial revenue through the hosting of the 2008 Olympic Games. This helped the country’s construction industry to withstand the global economic depression and achieve a consistent double-digit growth rate. The construction industry is expected to achieve a CAGR of 13.68% over the future forecast period till 2016. The report also states that the government of China intends to invest an additional CNY7.0 trillion in infrastructure during the period of 2011-2015. As per the latest five-year plan released by the government, 36 housing units have been announced. During 2011 a ten million affordable housing unit target was set which is part of the government’s plans to accommodate 20% of the country’s urban population in affordable housing by the year 2017. As per the Ministry of Human Resource and Social Security the minimum wage of the country will also increase by an average of 13% by 2016 and it is estimated that inflation will also lead to high input costs in the construction industry.

Source: http://www.researchandmarkets.com