Construction Orders Plunge as Builders Shift to Profit-Focused Bidding

New construction orders fell sharply in the first quarter of this year as builders moved away from expanding sales and focused instead on profitability. The shift comes as construction costs surge and the real estate market downturn continues. According to business reports dated the 15th, Hyundai Engineering & Construction recorded 3.9621 trillion won in new orders in the first quarter, down about 58% from 9.4301 trillion won a year earlier. The industry is avoiding aggressive bidding as raw material prices, labor costs and financing burdens rise together. The Korea Institute of Civil Engineering and Building Technology said the construction cost index reached 134.4 in March, rising every month since 130.9 last August. The mood is clear: builders are avoiding projects that could turn unprofitable. Source: rss.donga.com