According to the latest market survey released by Turner & Townsend, Hong Kong has surpassed Tokyo as the city with the highest real estate construction cost in Asia, due to the shortage of labor which further exacerbates the problem of rising construction costs.

Turner & Townsend predicts that the average construction cost in Hong Kong this year will rise by 4.8% to $4,500 per square meter, ranking ninth among the 91 surveyed cities worldwide. New York City leads the world with $5,723 per square meter, followed by San Francisco with $5,489 and Zurich with $5,035.

The survey also found that the average construction cost in Macau is $4,269 per square meter, ranking second in Asia and 12th globally, while Tokyo ranks third among Asian cities.