Government housing projects are raising industry demand
San Francisco, CA (PRWEB) April 06, 2013
Over the five years through 2013, revenue for the Building Construction industry in China has been growing at an average annualized rate of 22.0% to $1.54 trillion, says IBISWorld. The industry is highly influenced by China's real estate sector. 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 cause declines in sales volume and average prices of commercial buildings and discouraged real estate investment and new house starts. However, an increase in the number of government-mandated indemnificatory houses has raised demand for building construction services and offset the slowed growth in the commercial real estate market.
The concentration level of the Building Construction Industry in China is very low, with the top four market participants accounting for less than 10.0% of industry revenue in 2013. The industry's structure is fragmented across regional markets, says IBISWorld. Only a limited number of companies operate on a national scale and have formed significant economies of scales. The majority of construction enterprises are small in scale with limited business and regional scope.
Large general contractors are relatively stable and less vulnerable to industry changes due to their broad business scopes and established relationships with real estate developers, local government and material supply sources, says IBISWorld. Several of the major players in this industry, such as China State Construction Engineering Corporation and Shanghai Construction Group, are top-ranked global contractors. The Building Construction industry in China is estimated to contribute a quarter of total international construction trade value.
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. This report does not include analysis on the construction of bridges, subways, highways, railways, pipelines, and mines.
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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