Chart of the day: Has the declining construction cost offset higher land prices?

Construction cost fell 5.3%.

Intense competition among developers has led to escalating land prices this year. But as construction and financing cost have retreated in recent months, can developers get a relief from the skyrocketing land costs?

According to Maybank KimEng analyst Derrick Heng, the declines especially in construction cost are not sufficient to offset costlier lands unless selling prices are raised.

"Construction costs, the second-largest, are just 5% below their peak. Their decline is much smaller than the 9.4% slide in home prices," he noted.

He furthered that while funding costs for developers have also probably declined in recent months, this would unlikely move the needle much as funding accounts for just 2-3% of project costs.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia