Construction expenses in China are anticipated to go up by 8.8% annually in real terms up to 2016. Despite slowing down of the accelerated growth rate seen in 2006ƒ{2011, the country will persist in superseding other eminent national construction participants.
The gains will be bolstered by continued urbanization and industrialization, rebounding foreign investment funding, ascending levels of personal income, and more personal and household development.
Residential building, non-residential building, and non-building construction sectors, each accounted for one-third of the construction expenditure of the country during 2011. Up to the period ending 2016, non-building construction will see the most improvement. The improvement will be driven by the state government¡¦s endeavour to elevate the country¡¦s transportation infrastructure, inclusive of a high-speed national railway and the ¡§7918 network¡¨ of the national highway system.
Residential building construction during the forecast period will increase by 8.5% fuelled by increasing personal earnings, improved household status and continuous urbanization. Government¡¦s endeavour to help low-income people will also contribute to these gains. Non-residential building construction expenditure gains will be the slowest during the period.
Chinese goods and services will become more popular in the country and abroad, increasing consumer spending on them. This will motivate national and foreign direct investment in plants, warehouses, shopping complexes, businesses etc. China has different regions with different climates and levels of economic growth. Construction expenditure in the northwest is anticipated to show best gains, supported by the government¡¦s ¡§Great Western Development¡¨ plan, which will promote more spending on infrastructure and building manufacturing units. The central-east will accommodate about 30% of the national population and 37% of the economic output, which will support 42% of the construction market of China in 2016. Gains in central-east will be mainly due to growth in residential construction due to increased personal earnings in the area.
Source: http://www.reportlinker.com