Market Research Logo

Construction Outlook in China

Construction Outlook in China

Expenditures to rise nearly 9% annually through 2018
Construction expenditures in China are expected to rise 8.9 percent per annum in real terms through 2018. Ongoing indus-trialization, increasing urban population, expanding foreign investment funding, rising personal income levels, and further population and household growth will all work to drive gains in construction acti-vity in China. In addition, government’s effort to improve the county’s infrastructure, expand municipal utilities, and balance regional economy disparity will also aid growth in construction spending. However, further growth will be constrained by a slowdown in the Chinese economy through the forecast period, especially in fixed asset investment.

Domestic spending on manufactured goods to fuel nonresidential building
Nonresidential buildings represented the largest segment of construction market in China, accounting for 38 percent of total construction spending in 2013. Further advances will be driven by robust gains in consumer spending for manufactured goods and services from both at home and abroad, accommodative government policies and investment on transportation and energy infrastructures, such as power generation plants and airports, and greater foreign direct investment.

Government efforts, change in demographics to bolster residential construction
Residential construction expenditures accounted for slightly over one-third of overall construction spending in China in 2013. Residential building construction activity will be spurred by rising personal income levels and household growth as well as population migration from rural to urban areas in China. Government efforts to improve living conditions for low income earners (including construction of affordable and low rent houses in urban areas and subsidies for alterations of dilapidated farmhouses in rural areas) will also bolster residential building construction spending.

Northwest region to grow most rapidly
Although China is a single country, it consists of numerous distinct regional markets characterized by different climates, populations, and levels of economic development. Construction expenditures in the Northwest region are expected to enjoy the fastest growth of any region in China, growing nearly ten percent per annum in real terms through 2018. Gains will benefit from the gov-ernment’s “Great Western Development” strategy and the abundant natural resources, which will result in sizable increases in spending on infrastructure and manufacturing facilities in this area. However, the Central-East region, being home to about one-third of the country’s total population and economic output, will remain the largest regional market, accounting for 43 percent of the overall construction spending in China in 2018


  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table CONSTRUCTION EXPENDITURES IN CHINA
  • MARKET ENVIRONMENT
    • General
    • Economic Overview
      • Recent Economic Performance
      • Economic Outlook
        • Table GROSS DOMESTIC PRODUCT OF CHINA
    • Demographic Overview
      • Population
        • Table POPULATION OF CHINA
        • Table CHART II-1 POPULATION OF CHINA BY AGE, 2003-2023
      • Urbanization
      • Households
        • Table HOUSEHOLDS IN CHINA BY REGION
        • Table CHART II-2 HOUSEHOLDS IN CHINA BY REGION, 2003-2023
    • Industrialization & Manufacturing Trends
      • Table MANUFACTURING VALUE ADDED IN CHINA
    • Gross Fixed Capital Formation Trends
      • Table GROSS FIXED CAPITAL FORMATION IN CHINA BY REGION
    • Labor Force & Employment Patterns
      • Table EMPLOYMENT TRENDS IN CHINA, 2003-2013
      • Table CHART II-3 EMPLOYMENT TRENDS IN CHINA, 2003-2013
    • Personal Income Trends
      • Table PER CAPITA GROSS DOMESTIC PRODUCT IN CHINA BY REGION
      • Table CHART II-4 PER CAPITA GROSS DOMESTIC PRODUCT IN CHINA BY REGION, 2013
    • Banking System & Regulations
      • Table INTEREST RATES IN CHINA, 2003-2013
    • Currency Exchange Rates
      • Table CHINESE CURRENCY EXCHANGE RATES, 2003-2013
      • Table CHART II-5 CHINESE CURRENCY EXCHANGE RATES, 2003-2013
    • Inflation & Pricing Patterns
      • Table CONSTRUCTION PRICING DEFLATORS IN CHINA
    • Legal & Regulatory Environment
    • Construction Technology & Quality
    • The Twelfth Five-Year Plan
  • OVERVIEW
    • General
    • Construction Expenditures by Type
      • Table CONSTRUCTION EXPENDITURES IN CHINA BY TYPE
    • Construction Expenditures by Market
      • Table CONSTRUCTION EXPENDITURES IN CHINA BY MARKET
      • Table CHART III-1 CONSTRUCTION EXPENDITURES IN CHINA BY MARKET, 2003-2023
    • International Environment
      • Construction Expenditures for Selected Countries
        • Table CONSTRUCTION EXPENDITURES FOR SELECTED COUNTRIES, 2003-2013
      • Foreign Participation in China's Construction Industry
        • Table FOREIGN PARTICIPATION IN CHINA'S CONSTRUCTION INDUSTRY
  • RESIDENTIAL BUILDING
    • General
      • Table RESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE
    • New Housing Construction Expenditures
      • Table NEW HOUSING CONSTRUCTION EXPENDITURES IN CHINA
      • Table CHART IV-1 NEW HOUSING CONSTRUCTION EXPENDITURES IN CHINA, 2003-2023
    • New Housing Completions
      • Table NEW HOUSING COMPLETIONS IN CHINA
      • Table CHART IV-2 NEW HOUSING COMPLETIONS IN CHINA, 2003-2023
      • Single Family
      • Multifamily
    • Additions & Alterations
      • Table RESIDENTIAL BUILDING ADDITION & ALTERATION EXPENDITURES IN CHINA
    • Housing Stock
      • Table HOUSING STOCK IN CHINA BY TYPE & OWNERSHIP
      • Table CHART IV-3 HOUSING STOCK IN CHINA BY TYPE, 2003-2023
      • Single Family
      • Multifamily
      • Ownership
    • Living Space
      • Table AVERAGE LIVING SPACE IN CHINA
      • Table CHART IV-4 AVERAGE LIVING SPACE IN CHINA, 2003-2023
      • Urban
      • Rural
  • NONRESIDENTIAL BUILDING
    • General
      • Table NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE
    • New Construction
    • Additions & Alterations
    • Structure Types
      • Table NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE
      • Table CHART V-1 NONRESIDENTIAL BUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE, 2013
      • Industrial
      • Office & Commercial
      • Institutional
      • Other
    • Nonresidential Building Stock
      • Table NONRESIDENTIAL BUILDING STOCK IN CHINA
  • NONBUILDING
    • General
      • Table NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY TYPE
    • Structure Types
      • Table NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE
      • Table CHART VI-1 NONBUILDING CONSTRUCTION EXPENDITURES IN CHINA BY STRUCTURE, 2013
      • Roads & Other Transportation Infrastructure
        • Table PAVED ROADS IN CHINA BY REGION
        • Table CHART VI-2 TOTAL & PAVED ROADS IN CHINA, 2003-2023
      • Utilities
      • Other
  • REGIONAL TRENDS
    • General
    • Regional Demographic & Economic Trends
      • Population Patterns
        • Table POPULATION OF CHINA BY REGION
      • Economic Outlook
        • Table GROSS DOMESTIC PRODUCT OF CHINA BY REGION
        • Table CHART VII-1 GROSS DOMESTIC PRODUCT OF CHINA BY REGION, 2013
    • Regional Construction Expenditures
      • Table CONSTRUCTION EXPENDITURES IN CHINA BY REGION
      • Table CHART VII-2 CONSTRUCTION EXPENDITURES IN CHINA BY REGION, 2013
      • Central-North
        • Table CHART VII-3 CENTRAL-NORTH REGION OF CHINA
        • Table CENTRAL-NORTH REGION OF CHINA: CONSTRUCTION EXPENDITURES
      • Northeast
        • Table CHART VII-4 NORTHEAST REGION OF CHINA
        • Table NORTHEAST REGION OF CHINA: CONSTRUCTION EXPENDITURES
      • Central-East
        • Table CHART VII-5 CENTRAL-EAST REGION OF CHINA
        • Table CENTRAL-EAST REGION OF CHINA: CONSTRUCTION EXPENDITURES
      • Central-South
        • Table CHART VII-6 CENTRAL-SOUTH REGION OF CHINA
        • Table CENTRAL-SOUTH REGION OF CHINA: CONSTRUCTION EXPENDITURES
      • Southwest
        • Table CHART VII-7 SOUTHWEST REGION OF CHINA
        • Table SOUTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES
      • Northwest
        • Table CHART VII-8 NORTHWEST REGION OF CHINA
        • Table NORTHWEST REGION OF CHINA: CONSTRUCTION EXPENDITURES
  • INDUSTRY STRUCTURE
    • General
    • Industry Composition
      • Table REVENUE DATA: SELECTED CONSTRUCTION COMPANIES, 2013
    • Market Share
      • Table CHART VIII-1 CONSTRUCTION MARKET SHARE IN CHINA BY COMPANY, 2013
    • Marketing
    • Financial Issues & Requirements
      • Capital Expenditures
      • Project Funding
    • Company Profiles
      • AECOM Technology Corporation
      • Anhui Construction Engineering Group Company Limited
      • Balfour Beatty plc
      • Bechtel Group Incorporated
      • Beijing Construction Engineering Group Company Limited
      • Beijing Urban Construction Group Company Limited
      • Black & Veatch Holding Company
      • Bouygues SA
      • China Communications Construction Company Limited
      • China Gezhouba Group Company Limited
      • China National Chemical Engineering Company Limited
      • China National Machinery Industry Corporation
      • China Railway Construction Corporation Limited
      • China Railway Group Limited
      • China State Construction Engineering Corporation
      • Chiyoda Corporation
      • CTCI Corporation
      • Dongfang Electric Corporation
      • Fluor Corporation
      • Foster Wheeler AG
      • Fujian Construction Engineering Group Company
      • Guangdong Construction Engineering Group Corporation Limited
      • Guangsha Holding Group Company Limited
      • Hebei Construction Group Company Limited
      • HOCHTIEF AG
      • Hunan Construction Engineering Group Corporation
      • Jacobs Engineering Group Incorporated
      • Jiangsu Suzhong Construction Group Company Limited
      • Lend Lease Corporation Limited
      • Metallurgical Corporation of China Limited
      • NWS Holdings Limited
      • Power Construction Corporation of China Limited
      • Qingjian Group Company Limited
      • Shaanxi Construction Engineering Group Corporation
      • Shanghai Construction Group Company Limited
      • Shanghai Urban Construction Group Corporation
      • Sichuan Huashi Group Corporation Limited
      • Zhejiang Construction Investment Group Company Limited

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report