By Joel Scanlon
According to IBIS World, China’s building completion industry’s revenue is predicted to increase at a rate of 12.3% annually, in the next five years amounting to $621.7 B in 2016.
With increasing demand and the real estate being strong, the industry revenue growth is expected to be powerful in the beginning. But as the industry progresses, China's real estate markets become unsteady with deteriorating growth in the latter years
With the increasing industry revenue growth from 2005 to 2008, China’s building completion industry was found to increase by only 0.7% in 2009 due to the restriction of volume growth by higher property prices during the year. Regardless of this, the industry revenue improved by 8.5% in 2010 due to the growth in the domestic real estate market. Industry revenue is estimated to increase by 9.2% annually amounting to $348.2 B by 2011.
In order to encourage the Chinese economy, the Central Government increased its infrastructure construction investment in 2009, which is expected to increase the demand for building completion services in the forthcoming years.
The industry is an expert in decoration services with curtain wall decoration, public and domestic building completion, and accounting for only a fraction of the industry’s revenue. Design services seem to be the industry’s new revenue sources.
Due to the growing demand for decoration services, the industry anticipates rapid progress in the next five years.