Increasing buildings costs and tightened credit lines world wide are having notably different consequences across the globe an article in the Australian Financial Review announces.
In China, despite building costs continuing to surge by up to 10 per cent, construction output in Beijing, Shanghai, Guangzhou and Shenzhen remains high.
In Australia, the levels of national construction activity are at record highs, although Queensland appears to be easing off. In Sydney, Rider Levett Bucknall Director Mr. Bob Richardson said that increased funding costs had made developers in eastern states more risk averse, particularly in NSW, where margins were squeezed on the cost and value fronts. Consequently, this has put some major developments in doubt.
Rider Levett Bucknall Chairman and New Zealand Managing Director Mr. Brain Dackers said the New Zealand market has been affected by the credit crunch but ‘not in a dramatic way'.
In Europe, residential markets have been noticeably hit by the credit crisis, particularly in Britain and Spain.
In the United States, despite the decline in residential building market outpacing construction spending gains in the enduring non-residential markets, Rider Levett Bucknall United States Managing Director Mr. Julian Anderson said the consultants are keeping busy.
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