Small, Mid-sized Value Add Investments Hit by Double Whammy of Rising Construction Costs and Safety Laws
2022. 08. 26 · Byungki Koh
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Construction costs for commercial development projects funded by a foreign investor have risen 80%. Inflation has pushed up construction costs, but even given the rate of inflation, the rise in pricing has been severe. In this particular project, the size of the development had an influence on the steep rise in costs. This project was initially quoted in the KRW 70 billion range. However, construction companies have recently been avoiding small projects. These construction companies normally take a 10% cut from project costs, but due to inflation being so severe, it’s difficult to calculate quotes smaller the project becomes. The Serious Accidents Punishment Act has also caused construction companies to […]
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Content Editor, Seoul Property Insight(SPI)
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