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366%

34%

16%

20%

95%

66%

-24%

0 20 40 60 80 100 120 140

Vietnam

Malaysia

Thailand

Indonesia

Singapore

Hong Kong SAR

Philippines

Square metres (million s)

2nd Qtr 08 - 1st Qtr 0 9 2nd Qtr 07 - 1st Qtr 08

Building Starts Forecast 2nd Quarter 2008 to 1st Quarter 2009

Vietnam building sector surgesScheduled non-residential building starts are up 366% in Vietnam for the

period of 1 April 2008 to 31 March 2009 over the same period last year.  

BCI Asia’s Building Starts Forecast provides

advanced insight on trends in the building

industry. The quarterly forecast is based on

floor area data for 50,000 projects collected

by BCI Asia researchers in interviews with

developers, project managers, architects or 

engineers. Projects from the interviews were

included in this survey if construction or 

renovation works were scheduled to start in

the forecast year as of 31 March 2008 or if 

they had been scheduled to start construction

similarly in the prior year.

This forecast, focusing on large buildings, is

not intended to describe total market size.

Rather, it indicates future building supply

trends by geography and category.

While every effort has been made to ensure

that the information contained herein is accu-

rate, the publisher will not accept any liability

for omissions or errors. BCI Asia Construc-

tion Information Pte Ltd disclaims any and all

liability which may be claimed arising out of 

reliance upon the information presented in

this publication. Copyright ® 2008 by BCI

 Asia Construction Information Pte Ltd. All

rights reserved.

Scheduled starts for building projects

for the BCI Asia region of Hong Kong

and Southeast Asia have risen 40% in

the annual period from 1 April 2008

over the same period a year earlier,

according to BCI Asia.

This surge in building starts is being

driven by increased investment in non

-residential buildings, particularly in

Vietnam (up 366%) and Singapore

(up 95%) as well as in Hong Kong,

Malaysia, Indonesia and Thailand. In

 About this forecast

Forecast for non-residential building starts by region

the Philippines, scheduled starts

have declined reflecting developers’

caution towards this market segment.

Vietnam is set to become the biggest

market for non-residential building

supplies. However, projects are more

likely to experience delays in the rela-

tively young market of Vietnam, com-

pared to other regions where approval

processes for large commercial build-

ings have been better established.

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-6%

-9%

98%

-1%

376%

-35%

44%

0 2 4 6 8 10 12 14 16

Malaysia

Indonesia

Thailand

Vietnam

Philippines

Singapore

Hong Kong SAR

Square metres (million s)

2nd Qtr 08 -1st Qtr 09 2nd Qtr 07 -1st Qt r 08

21%

77%

51%

97%

3%

141%

998%

-33%

59%

1076%

0 10 20 30 40 50 60

Residential

Office

Hotel

Education/Research

Retail

Recreation

Transport

Industrial

Health/Community

Exhibition

Square metres (mil lions)

2nd Qtr 08 -1st Qtr 09 2nd Qtr 07 -1st Qtr 08

2 BCI Asia Building Starts Forecast - 1st Quarter 2008 to 2nd Quarter 2009 

The fastest growing sector in the com-

bined region of Hong Kong and South-

east Asia is Exhibition, with building

starts due to rise 10 fold in the year 

from 1 April 2008 over the same period

a year earlier. This jump in buildingstarts schedules is caused mainly by

large government-backed projects for 

Hanoi including the USD1.5 billion My

Dinh Exhibition Centre, the Museum of 

Culture & History, as well as the exhibi-

tion facilities at the Giang Vo Commer-

cial and Cultural Centre. Vietnam is

driving the rapid rise in scheduled build-

ing starts for the Recreation sector, up

141%, with major projects scheduled

for urban and coastal areas.

The Transport sector is set to enjoy a

998% increase in building starts with

new stations for the BTS Sky Train in

Thailand as well as new stations for the

Mass Rapid Transit lines in Malaysia.

Education/Research starts are sched-

uled to rise 97%, Office starts by 77%,

Health/Community by 59%, Hotel by

51% and Residential by 21%.

Starts in the Retail sector are set to

grow by only 3% while starts are down

33% in the Industrial sector.

Growth is mixed for scheduled con-

struction starts of large residential

buildings. Vietnam boasts a 376% jump

with projects like the Nguyen Cong Tru

 Apartment Complex with eight towers

of 25 to 29 storeys in Hanoi; the two

apartment towers at the Kreves Com-

plex in Da Nang; and the 2,400 apart-

ments at Riviera Point in Ho Chi Minh

City.

Indonesia is to enjoy a 98% surge in

residential starts with construction

about to start on large projects such as

the UrbanScapes condominium with a

floor area of 148,000 square metres

and the Royal Mediterania Garden City

apartment condominium with 138,000

square metres in Jakarta.

Residential starts are set to rise 44% in

Hong Kong but fall 35% in Singapore.

Forecast starts for large residential projects

Forecast starts for combined region by category

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43%

1615%

191%

18%

89%

42%

-68%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Malaysia

Vietnam

Thailand

Singapore

Hon g Kong SAR

Indonesia

Philippines

Square metres (million s)

2nd Qtr 08 -1st Qtr 09 2nd Qtr 07 -1 st Qtr 08

-25%

283%

3%

34%

98%

-29%

3%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Vietnam

Thailand

Malaysia

Indonesia

Philippines

Hon g Kong SAR

Singapore

Square metres (million s)

2n d Qtr 0 8 -1 st Qtr 09 2n d Qtr 0 7 -1 st Qtr 08

345%

17%

22%

18%

154%

42%

-26%

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Vietnam

Malaysia

Indonesia

Thailand

Singapore

Hon g Kong SAR

Philippines

Square metres (million s)

2nd Qtr 08 -1 st Qtr 09 2nd Qtr 07 -1st Qtr 0 8

Forecast starts for education/research projects

Scheduled office building starts for Viet-

nam have leapt 345% with new projects

in Ho Chi Minh City such as the Vietcom

Bank Tower and Lam Son Complex in

District 1 and a host of new buildings in

outer districts such as the SC5 complex

with 10 office towers containing approxi-

mately 290,000 square metres of floor 

area. Government agencies in Hanoi

refuse to be left behind and have de-

signed several high-rise office buildings

such as the 60-storey Nam Dam Plaza.

In Singapore and Hong Kong, rising

office rental prices have been driving

developers’ interest in the Office sector 

with scheduled building starts to rise

154% and 42% respectively. Significant

growth has also been recorded in Indo-

nesia (22%), Thailand (18%) and Malay-

sia (17%).

The Hotel sector is experiencing a fan-

tastic rate of growth, driven largely by

large new tourist developments in vari-

ous parts of Vietnam. Scheduled starts

include a USD31 million ecotourism

resort in Lao Cai; a USD80 million resort

on Phu Quoc Island in Kien Giang; a

USD220 million tourism complex at

Quang Ninh; the USD180 million Vien

Dong Meridian mixed development; and

the USD61 million Raffles Resort at Da

Nang.

Provincial areas of Indonesia are also

contributing towards regional growth in

the Hotel sector with projects like Para-

gon City in Semarang and the Peak

Hotel in Riau.

The Education/research sector is rising

rapidly with many large projects due to

start soon including Singapore’s Fu-

sionopolis Phases 2A and 2B; Viet-

nam’s National University and Hue Uni-

versity; and Malaysia’s Johore Campus

of Kuala Lumpur University, Nilai Institut

 Aminuddin Baki, HUSM Kubang Kerian,

UMS Sandakan, Taylor’s College Cam-

pus plus three major cabin school pack-

ages for Sabah.

3 BCI Asia Building Starts Forecast - 1st Quarter 2008 to 2nd Quarter 2009 

Forecast starts for hotel projects

Forecast starts for office projects

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231%

111%

136%

633%

233%

163%

-49%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

Vietnam

Malaysia

Hong Kong SAR

Philippines

Singapore

Thailand

Indonesia

Square metres (millions)

2nd Qtr 08 -1st Qtr 09 2nd Qtr 07 -1st Qtr 08

961%

1923%

261%

634%

85%

-83%

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Malaysia

Thailand

Vietnam

Indonesia

Hong Kong SAR

Singapore

Philippines

Square metres (millions )

2nd Qt r 08 -1st Qtr 09 2nd Qtr 07 -1st Qtr 08

13%

6%

8%

118%

-61%

-10%

-58%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Malaysia

Indonesia

Thailand

Vietnam

Philippines

Singapore

Hon g Kong SAR

Square metres (million s)

2nd Qtr 08 - 1st Qtr 09 2nd Qtr 07 - 1st Qtr 08

Forecast starts for transport projects

Building starts in the Retail sector are

expected to rise only marginally across

the region with growth in Vietnam

(118%), Malaysia (13%), Thailand

(8%), and Indonesia (6%) offset by

contractions in Hong Kong (-58%), Phil-ippines (-61%) and Singapore (-10%).

Meanwhile, the Transport sector is

about to yield a large work load for con-

tractors across the region. Besides new

stations for the BTS Sky Train in Thai-

land and the Mass Rapid Transit lines

in Malaysia, rail-related projects include

stations for the downtown extension in

Singapore. There is also an increase of 

activity for projects relating to air travelincluding the T2 Terminal at Noi Bai

 Airport in Hanoi, Vietnam; the Kuala

Namu Airport Passenger Terminal and

Cargo Terminal in North Sumatra, Indo-

nesia; a new Civil Aviation Department

Headquarters at Chek Lap Kok Airport

in Hong Kong; and an upgrade of Ter-

minal 1 at Changi in Singapore.

Building starts in the Recreation sector 

are rising rapidly everywhere except inIndonesia. The biggest project due to

start is Singapore’s Sports Hub incor-

porating an outdoor stadium with re-

tractable roof, an indoor arena and an

indoor aquatic centre. Dragages is due

to start building this sports complex in

the 2nd quarter 2008.

4 BCI Asia Building Starts Forecast - 1st Quarter 2008 to 2nd Quarter 2009

For more information on this forecast or to

subscribe to BCI Asia’s detailed construc-tion reports, please contact an office below

or visit www.bciasia.com:

Bangkok + 662 651 8600

Brisbane + 61 7 3634 8500

Hanoi + 84 4 562 6475

Ho Chi Minh City + 84 8 997 4220

Hong Kong + 852 2538 0011

Jakarta + 62 21 5790 2930

Kuala Lumpur + 60 3 7661 1380

Manila + 63 2 884 1122

Melbourne + 61 3 8412 7900

Perth + 61 8 9228 2227

Surabaya + 62 31 502 5352

Sydney + 61 2 9432 4100

Contact BCI Asia

Forecast starts for retail projects

Forecast starts for recreation projects