Sydney among world's most expensive cities for construction costs
The Australian construction market is the most adversarial in the world, with high costs placing Sydney as one of the five most expensive cities in the world to build commercial, multi-unit high rises and hotels.
In global firm AECOM's annual collection of data from more than 10,000 construction projects around the world, Sydney ranked in the top five most expensive cities for each category of development because of market conditions, including high labour costs.
The results found innovation and collaborative delivery on construction projects is needed to reduce costs and make construction more affordable.
The report also suggested the residential property market, which has recently been improving across Australia, particularly in Melbourne and Sydney, could "take up the slack" felt in the economy with the end of the resources boom.
The recovery of the housing market has been particularly evident in the apartment sector, with the report finding the rate of approvals for apartments is "well above its 20-year average".
This article originally appeared on SmartCompany.
