Comparison of House Construction Costs around the World
When deciding the worth of a piece of real estate, many people tend to look at land price and overlook construction costs. Both factors combined, will provide us with the value of a property. If you are deciding where to build your next dream home, the construction costs of property is one you need to be familiar with.
Developing vs developed countries
When you put the construction costs of homes in various countries alongside each other, you find out that developing countries tend to have lower construction costs. That is true in the case of Thailand, China, Indonesia, Malaysia, Philippines, Brunei and Vietnam. So, why does constructing a house in US costs so much more than constructing one in Beijing? Read on to find out.
Why Prices are Low in developing countries
Houses in these developing cities are not too pleasing to the eye. In fact, they appear to look rather indistinguishable amongst an entire crowd of similar-looking structures. Wade Shepard mentioned in his article on Forbes about the disappointment of finding a shabby apartment that was offered for sale at the central downtown region of Xiamen. The building was 15 years old only and had grime over its walls, fragile tiles, water leaking from the shower drain and other mismatched fixtures. Upon further surveying, he found that most buildings within that region only last for 25-30 years!
Quantity over Quality
A prevalent trait of housing structures in these low priced developing cities of Asia that you’ll find is that houses are built in mass units. The prices of these houses are controlled through the use of similar low quality materials and minimum resources. This mass quantity house construction approach becomes more evident when you consider the latest news of the mass housing project feasibility study agreement between the city government of Makati and the Chinese realty developer.
Cheap Labor Employment
Countries like China are renowned in the world for having cheap labor. Employing cheap labor in constructing houses can easily bring down some of the major associated expenses. The highest paid labor in China is in the construction sector with maximum earnings of about 3,508 Yuan (USD 522) per month. Poor quality, fragile buildings that were constructed took a heavy toll when the 2008 earthquake in Sichuan province took the lives of 87 thousand people.
Choose Security and High Quality over Low Price
Developed megacities around the world accommodate more detailed, modern and sustainable houses. As a result, you’ll find the price of constructing houses to be higher. Some of them incorporate Green Technology to save electrical costs and cut down on environmental pollution. They also tend to be aesthetically appealing. The top 5 interior design styles in the world are Industrial, Scandinavian, Eclectic, Minimalist and Modern Resort. Ultimately, you can what you pay for. When deciding the location, you need to be aware of the compromises one needs to make.
To find out more about taking up a bank loan vs. a HDB loan, refer to our full guide at http://redbrick.sg/blog/much-construct-home-various-cities-world/
The team at Redbrick Mortgage Advisory has more than 60 years of banking experience and is proficient in structuring and sourcing for the best financing terms for both residential and commercial real estate in Singapore, Malaysia, USA, UK, Japan, Thailand and Australia.