CONSTRUCTION REPORT Ӏ EAST ASIA


Nakano Sun Plaza Redevelopment) further pressure margins and delivery timelines. Export slowdown and fluctuations in demand for industrial buildings may weigh on short-term sector growth.


LANDMARK DEVELOPMENTS Japan is seeing landmark urban developments like the 390-metre ‘Torch Tower’ in central Tokyo,


HSC INTRODUCES THE UPDATED SCX800A-3


Sumitomo Heavy Industries Construction Cranes Co. (HSC) has updated its SCX800A-3 crawler crane with a new moment limiter system and other safety features. It has a new moment limiter with a large 12.1-inch


touchscreen. The display has an operator interface with new live readouts of counterweight specifi cation, ground contact pressure, list and trim indicator. As a new option for the European market there’s a


surround view system, called Argus, that merges and displays images from multiple cameras. The system allows operator to check surrounding conditions from a bird’s-eye view. To ensure that workers can safely work on the crane, handrails on the catwalks have been standardised and access to the machine improved, says HSC. The crane is equipped with Cummins B6.7 engine that meets EU Stage V emission standards for the high levels of clean running performance, together with an advanced control system (ECO winch mode, auto idle stop function) for energy-effi cient operation. The engine can also run on biodiesel and other Bio Diesel Fuel (BDF; B20) or Hydrotreated Vegetable Oil (HVO).


set for completion in 2027, which reflects ongoing high-value commercial and mixed-use projects. The construction materials


market is expected to grow robustly (CAGR of 4.0% over 2023–28), driven by the demand from large metro projects and the ongoing replacement and refurbishment of older buildings.


THE SOUTH KOREAN CONSTRUCTION MARKET The South Korean construction industry is facing significant headwinds. It is forecast to contract by 6.2% in real terms in 2025, following several years of declines –making 2025 the steepest contraction in over 26 years. Contractions in 2024 and


2025 are attributed to falling building permits, political uncertainty, rising construction costs, high household debt, and a sluggish housing market. In Q1 2025, construction


production fell by 20.7% year-on- year, marking the fourth straight quarterly decline and the sharpest fall since the 1998 financial crisis.


WEAK DEMAND In the residential sector building permits dropped sharply – 30.6% in 2023 and over 11% in early 2024. Weak residential demand and tighter housing markets are blamed as major drags on the industry. The commercial and industrial


sectors are similarly affected by a reduction in new building orders and external demand, with additional pressure from high material prices and interest rates. Infrastructure, however, is a


rare bright spot, with the sector expected to grow by 7.6% in real terms in 2024. Key infrastructure projects (such as the Daejeodaegyo Bridge) are moving forward with government backing, and transport infrastructure remains a priority. When it comes to the


20 CRANES TODAY


energy and green transition the government targets carbon neutrality by 2050, which is expected to drive investment from 2026 onwards, though current figures show a slowdown and cancellation of key projects (e.g., hydrogen power).


POLITICAL INSTABILITY Short-term performance is hindered by political instability, including events such as former President Yoon Suk Yeol's brief martial law declaration in 2025. The government is


investing heavily in support of semiconductor, AI, battery, and renewable energy industries. A KRW50 trillion ($34.4 billion) fund for 12 major sectors – including construction-enabling industries – aims to stabilise and re-energise the market. Trade policy uncertainty, such as possible US tariffs, also weighs on market sentiment, affecting large project viability and exports. Despite contraction in 2023–


2025, the market is expected to return to growth, with average growth rates of 2.6–2.8% annually from 2026 to 2029, supported by continued investment in infrastructure, transport, housing, and semiconductors. Easing of housing redevelopment rules and targeted support for advanced manufacturing are longer-term positives.


THE TAIWANESE CONSTRUCTION MARKET The construction industry in Taiwan is set for continued steady expansion. It’s expected to grow by 3.1% in real terms in 2025 and post an average annual growth rate of 4.1% from 2026 to 2029. Growth is driven by robust


investments in renewable energy, transport infrastructure, manufacturing, and an improvement in export activity.


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