CONSTRUCTION REPORT Ӏ EAST ASIA
Infrastructure output is set to grow to US$7.4 billion by 2028, as public investment pushes forward long- term urban development. Addressing Hong Kong’s housing deficit is a top government priority. Despite subdued demand and only a slight effect from policy relaxation (like stamp duty removal), public projects and affordable housing supply are in focus. For the commercial and
industrial sectors, commercial construction is expected to grow strongly (CAGR 4.5% to US$9.5 billion by 2028), while industrial construction is supported by increased manufacturing and public sector investment. Landmark industrial projects include new waste management facilities and data centre developments.
There has been steady
investment in education, healthcare, and research infrastructure continues to underpin growth in the institutional segment (estimated US$2.8 billion by 2028).
CHALLENGES AND RISKS Private development is sluggish, with developers remaining cautious and a drop in new project starts – a situation only partly offset by public sector resilience. The construction industry faces
persistent issues including labour shortages, rising material costs, and regulatory complexities. The overall outlook remains
clouded by economic and market uncertainty, global economic pressures, and a subdued real estate/finance market.
TADANO CONTINUES EXPERTISE EXPANSION
In July Tadano announced the completion of its acquisition of the transportation system business of IHI Transport Machinery Co., a subsidiary of Tokyo, Japan-headquartered engineering business IHI Corporation. With the move Tadano can now utilise IHI Transport Machinery’s engineering expertise in the jib climbing crane, port and large offshore crane, wind power crane, and bulk handling systems sectors. “This acquisition is a key step in expanding our capabilities in the global lifting equipment
market,” said Toshiaki Ujiie, president, CEO, at Tadano. “By integrating this business into our group, we are better equipped to serve the evolving needs of our customers and deliver long-term value.” For coverage on the expansion of Tadano’s portfolio into the knuckle boom loader crane sector see our knuckle boom loader crane feature starting on page 24.
The government’s “Northern
Metropolis” initiative is among the most significant ongoing urban development strategies. The construction project pipeline is robust, with sustained activity in public housing, education, utilities, and green infrastructure (e.g., waste-to- energy plants, integrated recycling centres).
FINAL OVERVIEW In conclusion, we see China and Taiwan experiencing stable-to- accelerating construction growth, fuelled by public investment in infrastructure, high-tech manufacturing, and renewable energy. The Chinese government’s strategic focus on infrastructure, technology, and energy shifts is matched by Taiwan’s large-scale transport and offshore wind initiatives.
Japan and Hong Kong are
enjoying modest, government- led growth, with their short-term expansions heavily reliant on major public projects (such as Osaka’s World Expo in Japan and transport/housing initiatives in Hong Kong), but facing private sector caution and the need to address skilled labour shortages. South Korea is currently
in a downturn, with the worst construction sector contraction in over two decades due to high interest rates, falling permits, political instability, and a sluggish housing market. Recovery is expected post-2026, driven by semiconductor, infrastructure, and energy investments.
The information here was sourced from GlobalData’s construction intelligence platform. Cranes Today is a GlobalData owned company. Full construction reports on each of the countries covered, plus more, are available from:
www.globaldata.com
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