Macau (MNA) – Increased expenditure on public infrastructure and building projects in the Macau SAR during 2017 has partially offset the shortfall caused by the decline in the private sector, Arcadis Design & Consultancy stated in a report released on Monday.
‘In the public sector, new building and civil engineering projects commenced in 2016 contributed to the growth of construction output in 2017,’ the report reads.
In particular, Arcadis considers in its report building projects such as residential units, offices, health and recreational developments as well as civil engineering works such as roads, bridges and reclamation works.
Meanwhile, the city’s construction output shrank further in 2017, ‘with the wave of mega hospitality and gaming developments almost coming to an end,’ the consultancy stated.
According to Arcadis, while the volume of completed floor area in the private sector shrunk there was an even lesser volume of new works commencing last year, ‘particularly in the hospitality sector.’
Although reduced construction activity has generated less demand for labour, the consultancy stated that ‘local workers were less impacted by the loss of job opportunities due to the reduction in the number of foreign construction workers.’
As previously reported, workers’ wages rose 5.9 per cent year-on-year in 2017.
Construction costs are, nevertheless, set to continue rising in 2018, at a 1 per cent increase rate in the MSAR and 3 per cent in China, while costs in Hong Kong will dip some 2 per cent.
The rise is mainly due to an overall increase in material prices of around 3 per cent, pushed by the rebound in steel prices.
‘Looking ahead to 2019, although the potential effect of both positive and negative factors is not known, costs may continue to gradually rise by another 1 per cent in 2019,’ the report noted in reference to the MSAR.
