House Construction Costs of Developed Nations VS. Developing Nations
According to the findings of a research that’s presented in this infographic, an average standard high-rise apartment in Singapore would cost you around the range of $122.63 to $139.35 USD per square foot. This is quite close to the price of $150 USD per square foot that exists in the U.S. However, house construction costs in other developed nations like UK, Hong Kong and even the Macau city of China far exceed the house construction costs within the U.S. It is for this reason that many developers tend to seek assistance from agencies similar to Social Housing Co. to get a fair idea about how to proceed with developing their desired plot. Oh, also, did you know that Singapore’s high price range marks it on the map as one of the most expensive cities of Southeast Asia to reside in, almost equating close to the price range of Seoul, Korea? So, why does constructing a house in a developed nation like Singapore cost so much more than constructing one in Beijing? Read on to find out.
Why Prices are Low in Developing Nations
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 similarly 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!
Mass Quantity of Houses 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 because of which you’ll find the price of constructing houses to be quite high. One of the major advantages of constructing a house in Singapore is that you’ll have Green Technology. This will allow you to install solar energy or other renewable sources of energy if you’re constructing a house in Singapore. Since the 2000s, the features of American homes have become more sophisticated and convenient. The decades of the new millennium brought water systems like infinity edge pools, surround sound home audio systems, natural elements like natural light exposure as well as supreme artisanship with hand-scraped or hand-textured walls and floors.
Wouldn’t you prefer a secure and appealing house opposed to an inexpensive and fragile one? The good news you’ll be happy to hear in this conclusion is that there are opportunities that may support you if you’re looking to construct a sustainable house in a developed megacity. In Singapore, there are subsidies, housing grants and loans to support you. The government is working together with CPF Housing Grant, Additional CPF Housing Grant (AHG) and Proximity Housing Grant (PHG) to ensure that first time buyers as well as married couples find it easier to purchase houses. Furthermore, home owners enjoy one of the lowest mortgage rates in Singapore. They can always refinance loans in Singapore to enjoy further savings. They can optimize their purchase by working with professionals such as realtors or mortgage consultants.
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.