Photo courtesy Turner & Townsend
Turner & Townsend released its 2021 International Construction Market Survey (ICMS), where Tokyo topped the list of most expensive places to build for the first time, followed by Hong Kong in second place and San Francisco in third.
This major data-led study of construction costs in 90 global markets found Toronto led in Canada among the major cities at an average cost of $2167 per m2, quickly followed by Vancouver at $2117 per m2, and Ottawa at $2076 per m2. This is compared to Tokyo ($4002 per m2), Hong Kong ($3894 per m2), San Francisco ($3720 per m2), and New York in fourth place ($3511 per m2).
In Canada, Ottawa stood out as being the only city of the 18 markets surveyed in North America to be listed as a “hot” market.
Average labour costs from a cross-section of job roles in Canada were approximately half of the most expensive U.S. cities, with Toronto at $52.9 per hour and Vancouver at $53.1 per hour. This is compared to $109 per hour in New York and $104 in San Francisco.
The study also reported construction costs are projected to soar in the next two years as pressure and shortage of labour and materials coincide with infrastructure spending and pandemic recovery; the ICMS forecasts rising prices in the global construction sector will be sustained through the next two years.
Globally, demand for steel, softwood, and copper piping have seen prices rise sharply over the year, with increases of up to 40 per cent in some international cities, the study found.
