The construction sector generates a quarter of China's GDP, with the Building Construction industry making up the largest share.
San Francisco, CA (PRWEB) September 08, 2012
The construction sector accounted for a quarter of China's GDP in 2011, according to China’s National Bureau of Statistics, with the Building Construction industry making up the largest share. Over the five years through 2012, revenue for the industry has been growing at an average annualized rate of 22.1% to $1.24 trillion. The opening of China’s financial sector in the early 2000s, which provided greater access to bank loans for apartment purchases, greatly stimulated demand for residential building construction. This, along with rapid growth in government activities and downstream commercial industries, such as retailing, wholesaling, and manufacturing, has contributed to the industry’s strong performance, says IBISWorld.
The Building Construction industry in China is estimated to generate almost a quarter of total international construction trade value. Several large firms, including China State Construction Engineering Corporation (CSCEC) and Shanghai Construction Group, are top-ranked global contractors. Most of the major players, such as CSCEC, Shanghai Urban Construction (Group) Corporation, and Zhejiang Construction Investment Group, also have operations in related industries, such as civil engineering, real estate development, and construction machinery manufacturing. By operating across different sectors, they decrease costs and maintain stable supply sources. However, the majority of construction enterprises are small with limited business scope. Market share concentration is low, and the industry is fragmented across regional markets.
Rapidly increasing housing prices in major cities resulted in the State Council and several local governments issuing a series of measures to curb speculative housing demand and prevent excessive price growth. These policies are expected to cause declines in sales volume and average prices of commercial buildings and will discourage real estate investment and new house starts, according to IBISWorld. However, an increase in the number of government-mandated indemnificatory (i.e. low-income) houses is raising demand for building construction services and offsetting the slowed growth in the commercial and residential real estate markets.
For more information, visit IBISWorld’s Building Construction in China industry report page.
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IBISWorld industry Report Key Topics
Businesses in the Building Construction industry in China construct residential buildings, commercial buildings, hotels, office buildings, schools, hospitals, airport terminals, harbors, railway stations and factories.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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