Contents 1. Analysis - What does Q1 cost data indicate about the outlook for Hong Kong's construction market? 2. Approximate Building Costs in Hong Kong 3. Construction & Installation Price Index - Mainland China 4. Tender Price Index - Hong Kong 5. Materials 6. Labour 7. Gross Value of Construction Work Performed - Hong Kong 8. Approximate Building Costs for Major Cities in Asia

Statistical data are compiled from sources deemed reliable but accuracy is not guaranteed. The information contained herein should be regarded as indicative and for general guidance only. Whilst every effort has been made to ensure accuracy, no responsibility can be accepted for errors and omission, however caused. All rights reserved. Reproduction of this data, in whole or in part, is permitted providing the source is quoted.

- What does Q1 cost data indicate about the 1 Analysis outlook for Hong Kong's construction market? In the first three months of 2016, Hong Kong’s construction market reached an all-time high in terms of output and has been very busy. However, the approval of new works from LegCo in 1Q2016 was relatively slow compared with previous years. This slow approval rate and more subdued economies in Macau and China are impacting market confidence as the outlook for future work looks less certain. By June 11th the Public Works Sub-Committee (PWSC) had approved around HKD67bn worth of public works, with a further HKD7bn subject for review before LegCo goes into recess. This value is at a similar level to the 2014/15 sessions, however before the money can be released, it must receive final approval from the Finance Committee (FC) and this has been slower to come through this year. The first quarter saw only a small portion of the HKD67bn approved by the PWSC successfully trickle down into the market. Anecdotal evidence also indicates that less consultancy work has been awarded which will affect construction levels further down the line. In the last couple of months the approval rate seems to have picked up with HK47.1bn of new works now approved by the FC. As election season begins to take hold, including the LegCo elections in September, it will be interesting to monitor whether the elections impact the level of filibustering seen in the first half of the year and the future approval of works. Against this backdrop, it’s increasingly important to understand the current dynamics playing out within the Hong Kong, Macau and Greater China construction markets, and in particular, how some of the key trends emerging could impact the viability of current and future projects. In our analysis of a wide range of cost data and lead factors from Q1, we saw five key themes: 1.

Drop in Tender Price Index inflation continues in Hong Kong: At the end of last year, the government TPIs began to slow down with the ASD BWTPI negative for the first time since 2Q2009. Our quarter on quarter increase for 1Q2016 shows a 0.4% rise, representing a 2.36% increase year-on-year since 1Q2015. We have revised our own 12 month forecast down to circa 2% and this could drop further – the market is currently busy but the pipeline appears slimmer towards the end of the year. Another point that’s worth noting is that in our analysis of the façade tender returns we’ve received over the last 6-9 months, we noted higher than average price increases particularly in residential curtain wall and window works. We attribute this to the limited number of specialist facade contractors available in the market. The external wall elements could be contributing to a higher tender price, which may be masking a more pronounced slowdown. Overall, our unit rates of construction have remained flat.

QUARTERLY CONSTRUCTION COST REVIEW FIRST QUARTER 2016

1

- What does Q1 cost data indicate about the 1 Analysis outlook for Hong Kong's construction market? 2.

Slow approval from LegCo impacting on balance in supply and demand: In 4Q2015 the gross output of construction work in Hong Kong reached a record high, with a combined nominal value of HKD221bn. This is 68% higher than the previous peak in 1997 with the public sector showing a particular rise. A spike in work output in Q4 is not uncommon however it must be factored into programmes to avoid the risk of under supply of resource to deliver or close out projects at year end. Given that workload reached this record high, the slowdown in approval of works from LegCo in the first half of this year may mean that output has reached its peak, and mid-term forecast will remain relatively flat. However, if the same pace of decision making continues throughout the next six months, it could tip the balance too far in the opposite direction.

3.

Labour costs in Hong Kong continue to rise in 2016: In the first three months of the year overall labour prices rose by 1% with rebar benders and fixers and mechanical services trades showing the biggest positive movement. Whilst this has led to a focus on wages it’s important to look beyond just the salaries paid. The higher quality standards that are now expected within Hong Kong’s construction industry in terms of finish, compliance, health and safety and sustainability, means that the extent of labour that needs to be carried out onsite is much higher than before. If the work itself is becoming more complex and labour intensive, then additional man days are needed and it’s inevitable that costs will remain higher. To get a greater control over rising construction costs, the government has launched a “3S initiative”. This stands for “Standardisation”, “Simplification” and “Single integrated element”. This campaign is focused on trying to increase productivity and rationalise the manpower demand of trades with a predicted shortage of labour. In the medium to long term we can expect to see wider use of innovative approaches like pre-fabrication and more application of technology like BIM. These aren’t currently filtering through to the private sector although there are some good examples in the public sector where the Housing Authority is already an early adopter of pre-fabricated solutions. In 1Q2016 the percentage of young workers increased by 2% and workers aged over 40 dropped from 67.7% to 67.2%. The increase in young workers is a positive development, however the percentage of older workers is still higher than most other markets.

4.

Increase in unemployment levels in Hong Kong may signal beginning of a wider slowdown One of the interesting points to note in the 1Q2016 data was an increase in unemployment in certain parts of the construction industry, particularly the decoration and maintenance trades. This may reflect the time of year, with a number of people looking for new jobs following bonuses and pay reviews, however these trades often serve as a good barometer for the health of the wider industry. A rise in unemployment in these areas could signal the start of a slowdown in workload throughout 2016. QUARTERLY CONSTRUCTION COST REVIEW FIRST QUARTER 2016

2

- What does Q1 cost data indicate about the 1 Analysis outlook for Hong Kong's construction market? The slowdown in Hong Kong’s retail sector and an increase in the number of professionals coming back from Macau are two other contributing factors that are worth monitoring over the coming months.

5.

Slowdown in China increasingly evident in construction industry Q1 statistics indicate that in Mainland China, many of the inputs to construction are showing a year-on-year decrease or negative inflation. For example, construction labour prices are increasing at the slowest rate for seven years with a rise of just 3.7% in 1Q2016. This is much lower than the 10-15% rises we were typically seeing as recently as 2011. Similarly, compared with 1Q2015, the cost of core construction materials like copper, concrete, steel reinforcement and cement has decreased by 7.2% overall. However, whilst year-on-year material costs are significantly down, 1Q2016 data showed an increase in the cost of these materials. This may be a bit of market volatility or a seasonal adjustment, with suppliers and manufacturers known to raise prices in the first quarter of a year, however it could also indicate that the market has bottomed out. Despite the decrease in material costs in Mainland China, unit rates have generally remained flat as rising labour costs have offset any potential savings here.

An opportunity on the horizon? So what can we take from the first quarter statistics in 2016? Is it a good time to build in Hong Kong with material prices low, or should the industry be more concerned at the all-time record highs of output, at a time when labour wages continue to rise and our industry continues to grow older? Similarly, can we consider these market trends in Hong Kong in isolation? Or do we also need to factor in the slowdown in workload in Macau and the impact of changing conditions in Mainland China as well? A conclusive answer to these questions will become clearer over the coming months however the continued softening in the Tender Price Index should not be overlooked or underestimated. There is an opportunity for clients to start looking at bringing forward their projects as lower costs can be secured by tendering new work at a time when the construction market outlook is less positive, and economies in Hong Kong, Macau and Mainland China continue to face headwinds.


3

2 Approximate Building Costs in Hong Kong Building Type

HK$/m2 CFA

Outline Specification

DOMESTIC 

Apartments, high rise, public authority standard

11,000 - 14,000

Apartment units with fit-out, based on Hong Kong Housing Authority Non-standard Cruciform Block design



Apartments, high rise, average standard

24,500 - 28,800

Apartment units with fit-out, including air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings and loose furniture



Apartments, high rise, high end

33,100 - 38,500

Apartment units with good quality fit-out, including airconditioning, kitchen cabinets and home appliances, but excluding decorative light fittings and loose furniture



Terraced houses, average standard

33,600 - 39,200

Houses with fit-out, including air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings, loose furniture, garden and parking



Detached houses, high end

43,500 - 49,500

Houses with good quality fit-out, including air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings, loose furniture, garden and parking

OFFICE / COMMERCIAL 

Medium/high rise offices, average standard

24,000 - 28,500

RC structure, curtain wall/window wall, including public area fit-out, tenant area with screeded floor, painted wall and ceiling



High rise offices, prestige quality

29,800 - 36,700

RC structure, curtain wall, including public area fit-out, tenant area with raised floor/carpet, painted wall and false ceiling



Out-of-town shopping centre, average standard

24,500 - 28,800

Including public area fit-out and M&E, but excluding shop fit-out



Retail malls, high end

32,600 - 38,700

INDUSTRIAL 

Owner operated factories, low rise, light weight industry

18,800 - 23,900

RC structure, including small office with simple fit-out and M&E, but excluding a/c and heating

HOTEL 

Budget hotels - 3-star, mid market

31,300 - 33,800



Business hotels - 4/5-star

32,800 - 38,800



Luxury hotels - 5-star

38,400 - 44,500

1) 2) 3) 4)

Interior decoration Furniture (fixed and movable) Special light fittings (chandeliers, etc.) Operating Supplies and Equipment (OS&E) excluded

OTHERS 

Underground/basement car parks (<3 levels)

18,500 - 23,000

RC structure



Multi storey car parks, above ground (<4 levels)

11,500 - 13,500

RC structure, natural ventilation, no facade enclosure



Schools (primary and secondary)

20,200 - 21,900

Public authority standard, including fit-out, no a/c, complete with basic external works but excluding educational equipment



Students' residences

19,800 - 23,000

Including fit-out, loose furniture and a/c



Sports clubs, multi purpose sports/ leisure centres (dry sports)

31,000 - 35,000

Dry sports (no swimming pool) and are for 'leisure centre' type schemes including main sports hall, ancillary sports facilities, changing and showers, restaurant / cafe, bar, etc. Costs include a/c, Furniture, Fittings and Equipment (FF&E)



General hospitals - public sector

40,000 - 45,500

Excluding medical and operating equipment

Notes:

1.

The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design and many other factors and may vary from the figures shown.

2.

The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.

3.

All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site conditions. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.


4

3 Construction & Installation Price Index - Mainland China

Construction & Installation Price Index Index

Published (by NBS of China) (Base : Corresponding Quarter in Preceding Year = 100)

Projected (by Arcadis) (Base : Q4/2002 = 100) (see explanatory notes below)

Quarter / Year

2013

2014

2015

2016

2013

2014

2015

2016

1st Quarter

100.2

101.5

98.6

96.4

150.1

152.4

150.3

144.9

2nd Quarter

99.8

100.7

98.2

155.1

156.2

153.3

3rd Quarter

100.1

100.4

96.3

159.9

160.6

154.6

4th Quarter

101.1

99.7

95.9

163.8

163.3

156.6

Source : National Bureau of Statistics (NBS) of China Explanatory Notes: Data are published on a quarterly basis, measuring the year-on-year change in price level of each quarter, but the quarter-on-quarter change is not published, ie. the changes between consecutive quarters are not given. To give an illustration of the price trend over time, Arcadis applies a hypothetical calculation to derive the data table and chart as above, basing on the following understanding and assumptions: 1. Only indices from 1st Quarter 2003 and onwards are published. 2. For 2002 and before, indices were only published annually. This annual index indicates that the average fluctuation of 2002 was moderate. Arcadis' own in-house data further substantiates that construction costs in 2002 were rather stable throughout the year. 3. Changes between quarters in 2002 are assumed to be evenly distributed throughout the year. This establishes a notional relationship between the four quarters in 2002 and can be compared with the published data for 2003 to find their notional quarter-on-quarter changes. 4. For comparison purposes, 4th Quarter 2002 is referred to as base and the base index as 100.


5

4 Tender Price Index - Hong Kong

Quarter / Year

2007

2008

2009

2010

2011

Q1

821

1,118

1,074

1,134

1,273

Q2

859

1,305

983

1,161

1,320

Q3

906

1,401

1,111

1,249

Q4

998

1,262

1,107

1,266

2012

2013

2014

2015

1,414

1,516

1,621

1,732

1,438

1,532

1,648

1,761

1,369

1,467

1,559

1,679

1,777

1,408

1,496

1,590

1,703

1,775

211

(N/A)

2016

ASD BWTPI (Base = 100, at Year 1970)

ASD BSTPI (Base = 100, at Year 1989) Q1

124

148

128

130

149

149

193

Q2

120

163

134

135

162

200

230

178

189

Q3

127

170

129

143

187

281

215

(N/A)

225

Q4

147

145

133

148

175

203

219

(N/A)

196

Arcadis TPI (Base = 100, at Year 1970) Q1

1,020

1,239

1,245

1,297

1,385

1,511

1,688

1,789

1,946

1,992

Q2

1,074

1,360

1,242

1,315

1,425

1,552

1,713

1,808

1,958

2,000*

Q3

1,175

1,355

1,253

1,342

1,452

1,595

1,747

1,857

1,963

2,010*

Q4

1,150

1,281

1,273

1,367

1,491

1,632

1,786

1,903

1,984

Source:

Competitive tenders received by Arcadis, Building Works Tender Price Index (BWTPI) and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR.

Notes:

1. 2. 3.

[*] denotes forecast figures. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder’s works only. Special works and Mechanical and Electrical Services would have to be considered separately. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1998 and onwards are given in detail, whereas indices between the years 1970 to 1997 are shown with their 4th Quarter figures.


6

5 Materials Mainland China Construction Material Prices Year-on-Year Change Quarter / Year

2014

2015

2016

1st Quarter

(-)0.4%

(-)4.5%

(-)7.2%

2nd Quarter

(-)1.2%

(-)4.6%

3rd Quarter

(-)1.6%

(-)3.7%

4th Quarter

(-)2.4%

(-)8.2%

Source : National Bureau of Statistics of China

Basic Construction Materials


7

6 Labour Mainland China Construction Labour Prices Year-on-Year Change Quarter / Year

2014

2015

2016

1st Quarter

(+)6.9%

(+)5.7%

(+)3.7%

2nd Quarter

(+)6.0%

(+)4.5%

3rd Quarter

(+)5.7%

(+)3.9%

4th Quarter

(+)5.9%

(+)4.3%

Source : National Bureau of Statistics of China

Hong Kong SAR

Age Group

No. of Workers Employed by Construction Industry

Age 15 - 24

26,675

7.0%

Age 25 - 39

97,517

25.7%

Age ≥ 40

254,648

67.2%

Total (as at Apr 2016) :

378,840

100.0%

Source : Census & Statistics Department, Hong Kong SAR Age Distribution of Workers


8

7 Gross Value of Construction Work Performed - Hong Kong

Quarter

Value Performed (HK$ Million) 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1st Quarter

6,051

6,959

8,382

8,600

6,349

7,529

11,209

11,675

13,395

15,528

2nd Quarter

6,161

7,429

8,122

9,055

9,276

8,458

12,260

12,176

12,507

17,284

A. Private sector sites

3rd Quarter

6,016

6,582

7,688

8,408

7,360

9,192

12,481

11,848

12,792

16,849

4th Quarter

6,627

8,004

9,303

7,543

7,322

10,102

13,411

13,781

15,259

16,426*

24,855

28,974

33,495

33,606

30,307

35,281

49,361

49,480

53,953

66,087*

1st Quarter

4,693

4,293

3,819

3,967

6,511

9,880

13,168

16,829

18,258

18,531

2nd Quarter

3,998

3,575

3,762

4,652

6,937

9,263

12,023

14,690

15,397

18,964

Year Total :

B. Public sector sites

3rd Quarter

3,918

3,105

3,653

4,428

8,651

10,814

12,137

13,792

16,253

18,163

4th Quarter

4,526

3,530

4,105

5,605

9,117

12,113

17,332

16,976

18,915

21,425*

17,135

14,503

15,339

18,652

31,216

42,070

54,660

62,287

68,824

77,082*

Year Total :

C. Locations other than sites 1st Quarter

11,229

10,995

11,883

11,750

11,926

12,172

13,347

15,140

17,909

19,549

2nd Quarter

12,305

11,979

13,213

12,415

12,109

11,620

13,245

15,914

20,327

18,744

3rd Quarter

12,368

13,057

12,818

11,969

12,620

12,953

14,358

16,038

18,636

19,520

4th Quarter

12,338

13,358

12,851

12,552

13,097

14,439

16,479

17,716

20,088

20,478*

Year Total :

48,240

49,389

50,765

48,686

49,752

51,184

57,429

64,809

76,960

78,291*

Total :

90,230

92,866

176,576

199,737

221,461

Annual gross value performed (A + B + C) 99,599

100,944

111,275

128,535

161,450

* Provisional Source : Census and Statistics Department, Hong Kong SAR


9

8 Approximate Building Costs for Major Cities in Asia

Shanghai

Guangzhou/ Shenzhen

Beijing

Building Type

Chongqing/ Chengdu

Dalian

Shenyang

RMB / m2 CFA

DOMESTIC 

Apartments, high rise, average standard - Shell and core - Full fit

2,470 - 2,850 4,280 - 4,750

2,500 - 2,900 4,000 - 4,400

2,210 - 2,450 3,310 - 3,650

2,200 - 2,500 3,100 - 4,100

2,360 - 2,540 3,570 - 4,140

2,260 - 2,450 3,300 - 3,760

2,280 - 3,050 5,500 - 6,060

2,600 - 3,200 5,000 - 6,600

2,720 - 3,100 6,780 - 7,430

2,630 - 3,010 5,410 - 6,120



Apartments, high rise, high end - Shell and core - Full fit



Terraced houses, average standard - Shell and core - Full fit

2,850 - 3,050 N/A

2,900 - 3,400 5,900 - 6,400

2,490 - 2,750 N/A

2,500 - 3,000 N/A

2,630 - 3,020 N/A

2,450 - 2,820 N/A

Detached houses, high end - Shell and core - Full fit

4,280 - 4,750 N/A

4,400 - 4,900 11,400 - 11,900

3,410 - 3,750 N/A

3,400 - 4,000 N/A

3,570 - 3,960 N/A

3,300 - 3,580 N/A



3,050 - 3,330 3,000 - 4,400 10,460 - 11,420 10,000 - 11,400



5,700 - 7,600

5,700 - 7,700

4,810 - 5,320

5,100 - 6,100

5,370 - 5,740

5,180 - 5,640




7,600 - 9,500

7,700 - 12,700

6,630 - 7,320

6,500 - 9,000

7,340 - 7,720

7,060 - 8,000




N/A

4,400 - 5,900

4,580 - 5,050

4,000 - 5,300

4,700 - 5,280

4,240 - 4,700




8,080 - 10,450

7,900 - 10,900

6,770 - 7,470

7,000 - 9,500

7,250 - 8,190

7,060 - 8,000

INDUSTRIAL 

Industrial units, shell only. (Conventional single storey framed unit)

3,330 - 3,800

3,400 - 3,900

3,130 - 3,450

2,800 - 3,700

N/A

N/A




N/A

N/A

N/A

N/A

N/A

N/A

6,180 - 7,600

6,400 - 7,900

6,230 - 6,880

6,000 - 7,500

6,400 - 6,960

6,220 - 6,870

HOTEL 





10,450 - 14,250 10,900 - 13,900 10,060 - 11,110 10,500 - 13,500 10,810 - 12,240 9,410 - 12,240




14,250 - 17,100 13,900 - 17,900 13,720 - 15,150

N/A

N/A

N/A

OTHERS 


4,750 - 6,660

4,900 - 5,400

3,160 - 5,060

N/A

N/A

3,560 - 3,960




2,370 - 3,330

2,900 - 3,400

2,260 - 2,490

2,100 - 2,500

2,310 - 2,410

2,210 - 2,380




3,330 - 4,280

3,400 - 4,400

2,500 - 2,770

N/A

N/A

N/A




2,370 - 3,330

2,400 - 3,400

1,600 - 1,770

N/A

N/A

N/A



Sports clubs, multi purpose sports/leisure centres (dry sports)

6,180 - 7,600

5,900 - 7,900

4,690 - 5,180

N/A

N/A

N/A




9,500 - 12,350

7,900 - 9,900

N/A

N/A

N/A

N/A


10


Hong Kong Building Type

Macau

Singapore

Kuala Lumpur

Bangkok

USD / m2 CFA (See also exchange rates per U.S. dollar below) HK$ 7.80

MOP 7.98

S$ 1.41

RM 4.20

BAHT 34.98


N/A 3,140 - 3,690

1,692 - 2,506 2,168 - 2,657

N/A 1,350 - 1,525

N/A 310 - 470

486 - 572 615 - 743




N/A 4,240 - 4,940

2,506 - 3,747 3,033 - 4,637

N/A 2,060 - 3,050

N/A 750 - 895

586 - 758 915 - 1,086




N/A 4,310 - 5,030

2,957 - 3,684 3,709 - 4,424

N/A 1,740 - 1,950

N/A 215 - 310

286 - 372 429 - 515


N/A 5,580 - 6,350

3,584 - 5,163 4,511 - 5,877

N/A 2,200 - 2,910

N/A 730 - 905

500 - 715 743 - 901

DOMESTIC 





3,080 - 3,650*

2,506 - 3,233

1,740 - 1,915@

590 - 685

600 - 743#




3,820 - 4,710

3,233 - 3,534

1,915 - 2,130@

850 - 1,155

786 - 1,001##




3,140 - 3,690

2,356 - 3,534

1,915 - 2,060

520 - 625

586 - 758




4,180 - 4,960

3,709 - 4,474

2,060 - 2,270

645 - 840

786 - 815

INDUSTRIAL 


N/A

N/A

730 - 940

310 - 390

457 - 572




2,410 - 3,060

N/A

N/A

420 - 475

N/A

HOTEL 


4,010 - 4,330

3,296 - 3,722

2,165 - 2,340

980 - 1,370

1,072 - 1,187




4,210 - 4,970

4,474 - 5,338

2,770 - 3,125

1,695 - 1,985

1,372 - 1,573




4,920 - 5,710

5,338 - 6,316

2,770 - 3,125

1,890 - 2,205

1,601 - 1,715

OTHERS 


2,370 - 2,950

1,955 - 2,870

940 - 1,280

350 - 485

515 - 672




1,470 - 1,730

1,078 - 1,416

660 - 940@@

200 - 260

172 - 274




2,590 - 2,810**

2,155 - 2,506

N/A

210 - 240

N/A




2,540 - 2,950

1,717 - 1,992

1,600 - 1,740

270 - 295

N/A




3,970 - 4,490

N/A

1,990 - 2,130

570 - 625

N/A




5,130 - 5,830

N/A

2,770 - 2,910

845 - 1,055

N/A


11


Jakarta Building Type

Brunei

Manila

Seoul

USD / m2 CFA (See also exchange rates per U.S. dollar below) IDR 13,525

B$ 1.40

PHP 47.29

KRW 1,131

N/A 658 - 745

N/A 779 - 1,070

N/A 860 - 1,013

999 - 1,193∆ 1,361 - 1,635∆

N/A 908 - 1,025

N/A 963 - 1,254

N/A 1,180 - 1,516

1,061 - 1,282∆∆ 1,635 - 2,006∆∆

N/A 349 - 453

N/A 504 - 795

N/A 792 - 940

N/A N/A

N/A 950 - 1,062

N/A 767 - 1,058

N/A 1,535 - 1,950

1,025 - 1,264 2,218 - 3,376

649 - 718

779 - 1,070

700 - 920

1,202 - 1,388

958 - 1,071

1,102 - 1,393

1,080 - 1,352

1,396 - 1,715

DOMESTIC 



















556 - 615

756 - 1,047

516 - 920

1,131 - 1,750




615 - 665

998 - 1,288

1,034 - 1,596

1,326 - 2,192

INDUSTRIAL 


298 - 324

360 - 651

450 - 755




324 - 357

490 - 780

655 - 775

663 - 840∆∆∆ N/A

HOTEL 


1,127 - 1,332

1,474 - 1,764

998 - 1,254

1,653 - 2,077∆∆∆∆




1,542- 1,666

2,079 - 2,369

1,306 - 1,793

2,316 - 3,995∆∆∆∆




1,643 - 1,852

2,134 - 2,425

2,028 - 2,503

2,572 - 4,110∆∆∆∆

946 - 1,114∆∆∆∆∆

OTHERS 


460 - 563

N/A

445 - 559




298 - 324

399 - 690

466 - 817

583 - 760




N/A

585 - 875

725 - 1,158

N/A




N/A

683 - 974

690 - 787

1,326 - 1,503




1,020 - 1,528

1,572 - 1,863

750 - 1,504

N/A




N/A

1,767 - 2,058

1,351 - 1,780

N/A


12


Building Type

Outline Specification

DOMESTIC Apartments, high rise, average standard

Shell and core, including finishes to public area, but excluding finishes to apartment units Full fit, with air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings and loose furniture

Apartments, high rise, high end

Shell and core, including finishes to public area, but excluding finishes to apartment units Full fit, good quality provisions, with air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings and loose furniture

Terraced houses, average standard

Shell and core, joined houses in row(s), excluding garden, parking, finishes and fittings to house interior Full fit, joined houses in row(s), with air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings, loose furniture, garden and parking

Detached houses, high end

Shell and core, good quality facade, excluding garden, parking, finishes and fittings to house interior Full fit, good quality provisions, with air-conditioning, kitchen cabinets and home appliances, but excluding decorative light fittings, loose furniture, garden and parking

OFFICE / COMMERCIAL Medium/high rise offices, average standard High rise offices, prestige quality Out-of-town shopping centre, average standard Retail malls, high end

RC structure, curtain wall, including public area fit-out, tenant area with raised floor/ carpet, painted wall and false ceiling Including public area fit-out and M&E, but excluding shop fit-out

INDUSTRIAL Industrial units, shell only. (Conventional single storey framed unit)

RC structure with steel roof and M&E to main distribution, but excluding a/c, heating and lighting


RC structure, including small office with simple fit-out and M&E, but excluding a/c and heating

HOTEL Budget hotels - 3-star, mid market Business hotels - 4/5-star Luxury hotels - 5-star

1) Interior decoration 2) Furniture (fixed and movable) 3) Special light fittings (chandeliers, etc.) 4) Operating Supplies and Equipment (OS&E) excluded

OTHERS Underground/basement car parks (<3 levels)

RC structure


RC structure, natural ventilation, no facade enclosure


Including fit-out and a/c, but excluding educational equipment


Including fit-out, loose furniture and a/c


Dry sports (no swimming pool) and are for 'leisure centre' type schemes including main sports hall, ancillary sports facilities, changing and showers, restaurant / cafe, bar, etc. Costs include a/c, Furniture, Fittings and Equipment (FF&E)

General hospital - public sector

Excluding medical and operating equipment

Notes:

1.

The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design and many other factors and may vary from the figures shown.

2.

The costs per square metre are based on Construction Floor Areas (CFA) measured to the outside face of the external walls / external perimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.

3.

All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site conditions. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.

4.

The standard for each category of building varies from region to region and do not necessarily follow that of each other.

5.

“Shell and core” generally covers ONLY base building elements. “Shell” refers to overall structure and foundations, exterior walls, floors and roof, completing with common areas, staircases, lift shafts, service ducts and fire services systems to local statutory requirements. “Core” refers to fully-fitted public areas (like lobbies, corridors and lavatories) and M&E main plant and upfeed, with tenant or occupant areas unfurnished.

6.

“Full fit” buildings should complete with all elements that allow the buildings to be ready for operation, including public and tenants’ (or occupants’) areas (i.e. with ALL finishes, fittings and M&E distributions).

7.

Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.

8.

Hong Kong:

* **

(i) Tenant area with screeded floor, painted wall and ceiling (ii) Facade in curtain wall/window wall Public authority standard, no a/c and complete with basic external works @@ Open on all sides with parapet Singapore: # Bangkok: (i) Excluding raised floor/carpet and inter-tenancy partition (ii) Facade in windows and brick wall/pre-cast concrete panel ## Excluding raised floor/carpet and inter-tenancy partition Seoul ∆ Excluding home appliance ∆∆ Curtain wall to external wall ∆∆∆ Steel structure ∆∆∆∆ Medium to high grade cladding, with garden ∆∆∆∆∆ Mechanical ventilation and car guidance system

@ Excluding carpet


13

Our Offices in Greater China HONG KONG 38/F, AIA Kowloon Tower Landmark East 100 How Ming Street Kwun Tong, Kowloon Hong Kong T: (852) 2830 3500 F: (852) 2576 0416 E: [email protected] BEIJING Suite 1225 - 1242, South Wing Central Tower, Junefield Plaza 10 Xuan Wu Men Wai Street Beijing 100052, China T: (86 10) 6310 1136 F: (86 10) 6310 1143 E: [email protected] CHANGSHA Room 11051, Zhong Tian Plaza 766 Wu Yi Avenue Furong District Changsha, Hunan Province 410005 China T: (86 731) 8971 1860 F: (86 731) 8971 6736 E: [email protected] CHENGDU Room 807 Block A Times Plaza 2 Zong Fu Road Chengdu, Sichuan Province 610016 China T: (86 28) 8671 8373 F: (86 28) 8671 8535 E: [email protected] CHONGQING Room 3408 International Trade Centre 38 Qing Nian Road Central District Chongqing 400010, China T: (86 23) 8655 1333 F: (86 23) 8655 1616 E: [email protected] DALIAN Unit 07, 32F, Xiwang Tower 136 Zhongshan Road Zhongshan District Dalian, Liaoning Province 116001 China T: (86 411) 8800 8018 F: (86 411) 8800 8823 E: [email protected] FOSHAN 3/F, Foshan Ling Nan Tian Di Zu Miao Road Shop Nos. Z01-Z11 Zu Miao Road, Foshan Guangdong Province 528000, China T: (86 757) 8203 0028 F: (86 757) 8203 0029 E: [email protected] GUANGZHOU 3A10-18 Unit, 3/F Bank of America Plaza 555 Ren Min Zhong Road Guangzhou Guangdong Province 510145 China T: (86 20) 8130 3813 F: (86 20) 8130 3812 E: [email protected]

HAIKOU Unit B, 27/F, Times Square 2 Guomao Road Haikou, Hainan Province 570100 China T: (86 898) 6652 7818 F: (86 898) 6652 7809 E: [email protected]

SHENZHEN Room 1001, AVIC Centre 1018 Huafu Road Shenzhen Guangdong Province 518031 China T: (86 755) 2598 1841 F: (86 755) 2598 1854 E: [email protected]

HANGZHOU Room 2305, WinNing International 100 Min Xin Road Hangzhou Zhejiang Province 310016, China T: (86 571) 2829 7766 F: (86 571) 2829 7622 E: [email protected]

SUZHOU Room 906, Century Financial Tower 1 Suzhou Avenue West Suzhou Jiangsu Province 215021 China T: (86 512) 8777 5599 F: (86 512) 8777 5600 E: [email protected]

HENGQIN 7/F, 156 Nan Shan Ju Road Hengqin, Zhuhai Guangdong Province 519031 China T: (86 756) 868 8986 F: (86 756) 868 8969 E: [email protected] MACAU 12th Floor Avenida da Praia Grande No. 594 Edificio BCM Macau T: (853) 2833 1710 / 2833 1705 F: (853) 2833 1532 E: [email protected] NANJING Room 1104 South Tower Jinmao Plaza 201 Zhong Yang Road Nanjing 210009 China T: (86 25) 2579 1860 F: (86 25) 6698 1860 E: [email protected] QINGDAO Room 09, 16/F, HNA Center 234 Yan An San Road Shinan District Qingdao Shangdong Province 266071 China T: (86 532) 8280 1818 F: (86 532) 8280 1881 E: [email protected] SHANGHAI 11th Floor, Building C, The Place No. 150 Zunyi Road Changning District Shanghai 200051 China T: (86 21) 6026 1300 F: (86 21) 6026 1800 E: [email protected] SHENYANG Room 3013-3015 Office Tower 1, Forum66 1-1 Qingnian Avenue Shenhe District Shenyang Liaoning Province 110063 China T: (86 24) 3195 8880 F: (86 24) 3128 6983 E: [email protected]

TIANJIN 4002, 40F, Tianjin World Financial Centre Office Tower 2 Dagubei Road Heping District Tianjin 300020 China T: (86 22) 2329 8611 F: (86 22) 2319 3186 E: [email protected] WUHAN Room 1008, 10/F Corporate Centre 5 Wuhan Tiandi 1628 Zhongshan Road Wuhan Hubei Province 430010 China T: (86 27) 5920 9299 F: (86 27) 5920 9298 E: [email protected] XI'AN Unit 06-07, 16/F CapitaMall Office Building 64 South Second Ring Western Xi'an Shaanxi Province 710065 China T: (86 29) 8866 9711 F: (86 29) 8866 9760 E: [email protected]

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