21 OCT 2022
RICS is pleased to release the Asia-Pacific (APAC) construction sector insights report covering China, Hong Kong, India, Oceania, and Southeast Asia markets. This mid-year report uses the findings of the RICS Global Construction Monitor Q2 2022 and APAC Leaders’ Forums to paint a picture of the emerging challenges and opportunities in the sector. Feedback from RICS members throughout APAC as part of the Q2 Commercial and Construction Monitors highlights a circumspect tone if one focuses on the aggregated numbers. This tone is reflected in the headline RICS Construction Activity Index for the region edging a little lower compared with the first three months of the year, albeit remaining in modestly positive territory.
Our leaders tell us that the sentiment presents a mixed picture in the second quarter of 2022. While the overall sentiment is generally positive but subdued, there are some clear regional and sectoral pockets of growth. The Construction Activity Index in India, Hong Kong, and Southeast Asia shows an upward trend, while Oceania and China seem to be displaying downward or stagnating sentiments. The discussions during the Leaders’ Forum lead us to believe that the market is in a “wait and watch” mode. RICS members who participated in the Leaders’ Forum highlighted the importance of taking an outcomes-based approach to the delivery of constructed assets. Other most discussed themes were digitalization, skills and competencies, and supply chain issues.
Two other very clear themes emerge at an aggregate level. First, infrastructure is currently driving activity in terms of construction and will likely continue to do so over the next twelve months. Secondly, regarding real estate, industrials/logistics and datacentres remain particularly sought-after assets, driving construction activity in these subsectors.