Dublin, Dec. 05, 2022 (GLOBE NEWSWIRE) -- The "China Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in China is expected to grow by 8.5% to reach CNY 9,508 billion in 2022.The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.3% during 2022-2026. The construction output in the country is expected to reach CNY 12,582.5 billion by 2026.
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in China.
Despite near-term challenges in certain construction sectors, medium to long term growth story in China remains intact. The construction industry in China is expected to grow steadily over the next four quarters.
The construction industry in China has recorded strong growth over the last few years on the back of low-interest rates and increasing government spending on the development of infrastructure projects. However, in 2022, the construction sector is facing ongoing pressure from the policies that are designed to deleverage property developers in the country and lead to more sustainable construction activity.
While infrastructure spending from the Chinese government will soften the blow, the publisher does not expect it to fully offset the impact on the construction sector growth. Along with its focus on infrastructure spending to boost the economy, the Chinese government is also planning for a smarter, greener, and safer construction industry over the next three to four years.
The Chinese government announces a five-year plan for a smarter, greener, and safer construction industry
To promote smarter, greener, and safer working in the Chinese construction industry, the government announced a five-year development in January 2022.
According to the Ministry of Housing and Urban-Rural Development, the construction industry in China is expected to grow at the same rate as the general economy, maintaining the 6% contribution to the national GDP. However, the construction industry has been directed by the Chinese government to modernize its supply chain and working methods in order to cut carbon emissions, adopt digital technologies, and improve the safety and quality of buildings.
One of the segments picked up by the Ministry of Housing, and Urban-Rural Development is the use of prefabricated buildings or building modules. Notably, the prefabricated construction sector must account for over 30% of the total new build output in the country. Another segment where the Ministry wants contractors and suppliers to focus is robotics. This is specifically applicable to factories making building components as well as firms carrying out building maintenance.
With construction firms directed to adopt newer technologies and cut carbon emissions, the publisher expects further innovation in the industry over the next three to four years in China.
The Chinese government plans to pump US$1 trillion into the construction of infrastructure megaprojects
In order to boost the Chinese economy, the government is planning to increase its investment in the development of infrastructure megaprojects, including high-speed rail and water tunnels.
In August 2022, the Chinese government announced that it is pumping trillions of yuan into infrastructure investment. According to Bloomberg, Beijing is investing 6.8 trillion yuan or US$1 trillion of government funds into different construction projects.
This investment from the Chinese government is expected to have a significant impact on the economy. In the near term, the infrastructure investment can boost employment, thereby providing much-needed relief to millions of job seekers in China. Whereas, from the long-term perspective, the investment can help the government's ambition of becoming a more urbanized and high-income economy.
Some of the infrastructure megaprojects where the government is expected to allocate funds include the construction of 1,629 km of high-speed rail from Sichuan province in the Southwest to the Tibetan capital Lhasa.
Notably, the construction of canals, reservoirs, and dams has been stepped up, with over 800 billion yuan set to be invested in those construction projects in 2022. The most ambitious of those is the 200 km long tunnel moving water from the Yangtze River to a reservoir that feeds Northern China.
Apart from these investments, the government is also expected to fund the building of urban infrastructure, including urban roads, water and gas pipe networks, and parks, accounting for the bulk of the government spending on infrastructure projects.
The publisher expects the investment from the Chinese government in the infrastructure sector to keep assisting the growth of the economy from the short to medium-term perspective.
Homebuyers in China refuse to pay the mortgage as construction gets delayed
Across the country, homebuyers are refusing to pay mortgages as property developers in China drag on with the construction projects, thereby further escalating the real estate crisis and risk of bad debt for banks.
According to a report from Citigroup Inc., buyers of 35 projects across 22 cities in China have decided not to pay mortgages as of July 2022. The refusal of payment further reflects the storm engulfing the property sector in China and its impact on the middle class, thereby posing a threat to social stability. The Chinese banks, which are already faced with challenges from liquidity stress among developers, now have to brace themselves for homebuyer defaults.
Notably, these developments come at a time when the risks of the Covid-19 outbreak are further renewed and continue to pose a threat to the industry. With delays in project completion and refusal to pay mortgages, the publisher maintains a bleak outlook for the residential construction sector from the short to medium-term perspective.
Scope
Market Data and Insights
- Market size by value
- Market size by volume of construction
- Number of units
China Top Cities Construction Data
China Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
China Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
China Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Construction stage (new construction, re-development & maintenance)
China Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
China Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
China Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Public sector
- Construction stage (new construction, re-development & maintenance)
China Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
China Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage (new construction, re-development & maintenance)
China Green Infrastructure Construction: 10- year market size & forecast in value terms
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