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COST
COMMENTARY
Review of tender
price movements in
Hong Kong
According to Rider Levett Bucknalls
Tender Price Index, which measures
tender price movements of builders
works in the private sector in Hong
Kong, there was an increase of 1.6%
in tender prices in the fourth quarter
of 2011. On a year-on-year basis, the
increase was 9.5%.
The following are the fourth quarter
year-on-year tender price movements
of builders works in the private
sector in the past five years:
2006 - 2007
+13.1%
2007 - 2008
2008 - 2009
2009 - 2010
2010 - 2011
+9.7%
-5.4%
+7.9%
+9.5%
Disclaimer:
While the information in this
publication is believed to be correct at the time
of publishing, no responsibility is accepted
for its accuracy. Persons desiring to utilize
any information appearing in the publication
should verify its applicability to their specific
circumstances. Cost information in this
publication is indicative and for general guidance
only and is based on rates at 4th Quarter 2011.
MACAU
According to the Statistics and
Census Service of the Macau government, Gross Domestic Product
for the fourth quarter of 2011 rose
by 17.5% year-on-year in real terms,
compared with the 21.1% growth in
the third quarter. The unemployment
rate for November 2011 to January
2012 was 2.1%, down by 0.1 percentage point over the previous period.
The average daily wage of construction workers was MOP583 in the
fourth quarter of 2011, an increase of
2.5% on a quarter-to-quarter basis.
The average daily wages of skilled
and semi-skilled workers increased
by 2.1% to MOP593 and that of
unskilled workers increased by 0.8%
to MOP366. Construction activities
have remained steady throughout
2011 with 351,501m2 of gross floor
area of buildings being granted
construction approvals, which was
a significant increase as compared
with the 95,265m2 of gross floor area
approved in 2010. More new projects
start ups are expected in 2012 including two to three mega casino and
resort projects. As there is shortage
of skilled construction workers in
Macau and there are restrictions in
importing labour, construction costs
have risen by about 10% in 2011 and
are expected to continue to rise at a
similar rate in 2012.
Mainland China
The year-on-year growth in Gross
Domestic Product in China was 8.9%
in the fourth quarter of 2011, further
moderating from the third quarters
increase of 9.1% and was the slowest
growth rate in nearly two years. The
Consumer Price Index rose by 3.2%
year-on-year in February 2012 which
was significantly lower than the 6.5%
recorded in the middle of 2011. The
Central Governments monetary
and administrative control measures
to cool down the private sector
housing market and to tame the
runaway inflation introduced since
late 2010 appear to have succeeded
to a certain extent, but there are still
no concrete signs that relaxation is
coming soon. Construction activities
in the private housing sector in major
cities have remained quiet in the last
few quarters. It is anticipated that
construction costs in major cities will
remain rather stable in the coming
months.
march 2012
HONG KONG
REPORT
Tender Price
Indices in
Hong Kong
2150
2150
1950
1950
1750
1750
1550
1550
1350
1350
1150
1150
950
950
750
750
550
550
350
350
1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Quarter / Year
Graph showing cost trends in the construction industry in Hong Kong based on Tender Prices for Builders Works
Tender Price
Indices
Quarter
19 6 8
19 69
1
2
3
4
100
104
112
130
148
1
2
3
4
1
2
3
4
RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD
1
2
3
4
19 8 0
570
570
600
610
347
353
369
381
19 92
1035
1020
1020
1030
531
548
519
518
2004
1255
1265
1230
1220
685
712
704
701
19 81
620
620
630
630
389
393
375
376
19 93
1025
1045
1075
1080
527
527
541
563
2 0 05
1260
1270
1275
1280
711
716
718
697
1 970
160
173
185
198
1 97 1
1 98 2
630
620
600
580
1 98 3
364
370
342
327
560
560
540
560
1 994
1100
1125
1160
1220
298
298
317
326
1 995
586
594
615
666
1280
1330
1360
1370
2006
1300
1310
1360
1410
1 972
708
712
733
747
2007
714
730
751
789
1440
1475
1535
1595
821
859
906
998
144
146
158
158
1 98 4
570
570
570
560
328
332
323
337
1 996
1400
1430
1485
1520
772
813
848
885
2008
1680
1810
1865
1750
1118
1305
1401
1262
1973
258
275
300
325
1985
560
555
565
585
326
335
344
351
1997
1575
1660
1760
1810
902
953
996
1051
2009
1630
1605
1620
1655
1974
1074
983
1111
1107
1986
605
615
630
655
376
392
373
380
1998
1800
1765
1695
1675
1103
1054
1065
1034
2010
1670
1730
1750
1785
1134
1161
1249
1266
1975
275
258
243
228
145
145
137
140
1987
1976
221
238
255
263
150
153
153
149
1988
197 7
270
270
273
300
164
174
185
201
1989
1978
320
350
380
420
1990
2000
1024 1510
1031 1440
1025 1435
989 1410
2011
959
873
858
844
2012
2001
1400
1390
1360
1290
862
842
807
721
2013
203
208
230
238
574
561
582
596
2002
1270
1240
1210
1185
687
742
692
733
2014
1979
460
500
535
550
262
285
304
329
19 9 1
1090
1075
1075
1055
608
592
573
515
20 03
1205
1230
1195
1210
720
723
722
681
2015
1840 1273
1870 1320
1925 1369
1955
Common Unit
Rates in
Hong Kong
Description
1Q2011
2Q2011
3Q2011
4Q2011
m3
1,120.00
1,190.00
1,210.00
1,210.00
Sawn formwork
m2
195.00
220.00
235.00
245.00
kg
10.00
10.20
10.80
10.80
m2
172.00
175.00
180.00
183.00
m2
120.00
122.00
126.00
128.00
m2
542.00
551.00
567.00
576.00
74.00
75.00
77.00
78.00
No.
4,810.00
4,890.00
5,030.00
5,100.00
34.50
35.00
36.00
36.00
kg
35.50
36.00
37.00
37.00
2,020.00
2,050.00
2,110.00
2,140.00
on horizontal surfaces
20 mm (Finished) Timber strip flooring including plywood
sub-floor, sanding and wax polishing
Timber skirting 100 mm high x 13 mm thick
50 mm Solid core flush door faced both sides with 5 mm
timber veneered plywood including door frame, architrave,
mouldings and painting (excluding ironmongery)
m2
55.00
56.00
58.00
59.00
m2
201.00
204.00
210.00
213.00
m2
2,650.00
2,690.00
2,770.00
2,810.00
m2
82.00
83.00
85.00
86.00
m2
560.00
570.00
580.00
590.00
m2
460.00
468.00
482.00
490.00
m2
326.00
331.00
341.00
346.00
m2
41.00
42.00
43.00
44.00
(45 x 45 or 45 x 95 mm tiles)
Alkali resistant primer and two coats of emulsion paint
on plastered walls and ceilings
Notes:
- The unit rates above are for general guidelines of likely tendered rates obtained by competitive tendering for lump sum fixed
price contracts with a normal contract period.
- The rates are also based on normal site conditions, locations and normal working hours.
HONG KONG
REPORT
march 2012
2011 4
Approximate Order of Construction Costs in Hong Kong and Selected Cities in China
(Cost per Square Metre Construction Floor Area at 4th Quarter 2011 Prices)
Type of Building
Hong Kong
HK$
Macau
MOP
Beijing
RMB
Chengdu
RMB
Guangzhou
RMB
Shanghai
RMB
Shenzhen
RMB
Tianjin
RMB
Wuhan
RMB
Wuxi
RMB
Xian
RMB
Zhuhai
RMB
Office
High Quality
16,400 - 22,400
13,000 - 18,200
6,700 - 10,300
6,000 - 8,900
6,400 - 9,900
6,700 - 10,100
6,400 - 9,800
6,400 - 9,900
6,000 - 8,900
6,600 - 10,100
5,700 - 8,200
5,900 - 8,900
Medium Quality
13,600 - 16,500
10,900 - 13,400
5,200 - 7,100
4,450 - 6,200
4,750 - 6,700
5,100 - 7,100
4,700 - 6,600
4,800 - 6,800
4,400 - 6,200
5,100 - 7,000
4,150 - 6,000
4,400 - 6,200
Ordinary Quality
11,800 - 14,600
8,800 - 11,400
3,750 - 5,200
3,300 - 4,500
3,550 - 4,800
3,750 - 4,950
3,500 - 4,700
3,600 - 4,950
3,300 - 4,500
3,700 - 5,000
3,100 - 4,300
3,250 - 4,500
High Quality
22,300 - 26,600
18,000 - 22,400
7,600 - 11,800
6,500 - 10,100
7,200 - 10,900
7,500 - 11,600
N
/A
N/A
N/A
N/A
N/A
Medium Quality
17,000 - 20,400
6,000 - 7,500
5,200 - 6,500
5,700 - 7,000
5,900 - 7,500
5,600 - 6,900
N
/A
N/A
N/A
N/A
N/A
9,800 - 16,000
4,100 - 5,700
3,500 - 4,850
3,900 - 5,300
4,000 - 5,600
3,800 - 5,250
3,950 - 5,300
3,500 - 4,850
4,050 - 5,600
3,350 - 4,750
3,450 - 4,850
Shopping Centre
N/A
7,100 - 10,800
Residential
High Rise; High Quality ;
15,100 - 21,000+
12,300 - 14,500
7,600 - 9,900
3,200 - 3,900
2,800 - 3,450
2,950 - 3,750
3,200 - 3,900
2,900 - 3,700
3,050 - 3,800
2,800 - 3,450
3,150 - 3,900
2,700 - 3,350
2,800 - 3,450
11,200 - 12,400
6,500 - 7,900
2,050 - 2,950
1,800 - 2,600
1,950 - 2,750
2,000 - 2,850
1,950 - 2,750
1,950 - 2,850
1,800 - 2,600
2,000 - 2,850
1,750 - 2,550
1,750 - 2,600
24,700 - 31,900+
N/A
4,450 - 6,000
3,700 - 5,200
4,050 - 5,600
4,300 - 5,900
4,050 - 5,600
4,100 - 5,700
3,700 - 5,200
4,400 - 5,900
3,550 - 4,900
3,700 - 5,200
17,600 - 22,000
N/A
2,850 - 3,750
2,550 - 3,300
2,700 - 3,500
2,800 - 3,700
2,650 - 3,500
2,800 - 3,550
2,550 - 3,300
2,800 - 3,650
2,400 - 3,050
2,500 - 3,300
24,600 - 40,400+
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3,200 - 6,900+
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
26,100 - 31,800
21,300 - 26,200
3-Star
21,300 - 24,500
11,500 - 14,800
11,900 - 15,500
9,800 - 12,800
10,200 - 13,500
7,800 - 10,100
8,800 - 10,800
8,900 - 11,300
8,500 - 10,800
8,500 - 11,100
7,800 - 10,100
8,800 - 11,300
7,200 - 9,500
7,500 - 10,100
Industrial
Landlord; High Rise ;
7,600 - 8,600
N/A
2,350 - 3,300
2,050 - 2,850
2,250 - 3,100
2,300 - 3,300
2,200 - 3,050
2,250 - 3,100
2,050 - 2,850
2,300 - 3,250
2,000 - 2,700
2,000 - 2,900
9,700 - 14,600
N/A
3,550 - 6,200
3,100 - 5,400
3,300 - 6,000
3,500 - 6,100
3,250 - 6,000
3,350 - 6,000
3,100 - 5,400
3,500 - 6,100
2,900 - 5,100
3,050 - 5,400
Basement; up to 2 Levels ;2
11,300 - 16,200
6,600 - 8,700
3,350 - 5,900
2,900 - 5,000
3,350 - 5,900
3,600 - 6,200
3,300 - 5,900
3,200 - 5,600
2,900 - 5,000
3,300 - 5,900
2,800 - 4,900
2,900 - 5,000
Multi-Storey ;
6,500 - 7,800
N/A
N/A
N/A
N/A
N/A
N/A
Carpark
N/A
N/A
N/A
N/A
N/A
NOTES
The construction costs above are based on prices obtained by competitive tendering for lump
sum fixed price contracts with a normal contract period and are based on normal site conditions
and locations.
The costs are average square metre unit costs only not based on any specific drawings / design.
Therefore they provide nothing more than a rough guide to the probable cost of a building.
Figures outside the given ranges may be encountered. When information is required on a specific
project, it is essential that professional advice be sought.
The standards for each type of building in selected cities in China do not necessarily follow those
in Hong Kong due to local design practices and choice of materials.
The building costs exclude furniture, fittings and equipment (except hotel / serviced apartment/clubhouse),
site formation and external works, finance and legal expenses, consultants fees and reimbursables, value of
land and fluctuations in prices between the price date as specified above and the time of calling tenders.
( / / )
Construction floor areas are measured to the outside face of external walls (or in the absence of
such walls, the external perimeter) of the building and include all lift shafts, stairwells and E&M rooms
but exclude lightwells and atrium voids. These areas are usually larger than Architects calculation
of Gross Floor Area (Plot Ratio Area). ()
()
Projects in selected Cities in China : utilities to the site beyond site boundary,
connection charges and capital contribution; local authority levies and taxation; import duties
HONG KONG
REPORT
march 2012
Labour Cost
Trends
1,300
1,100
1,250
1,050
1,200
1,000
1,150
950
1,100
900
1,050
850
1,000
800
950
750
900
700
850
650
800
600
750
550
5
6
7
8
9
10
11
12
10
1
11
10
11
12
10
11
Month / Year
Selected Occupations
2010
6
1,106.9 1,105.1
2011
10
11
12
1,197.5 1,192.8
935.0
943.7
Concretor
932.4
941.3
931.7
934.0
926.2
926.8
934.9
926.4
Carpenter (formwork)
997.2 989.0
977.4
982.7
983.3
985.9
993.8
996.9 1,007.2 1,012.3 1,017.4 1,021.3 1,032.8 1,059.6 1,066.2 1,077.4 1,092.9 1,090.4 1,084.9
826.8 832.3
828.7
829.6
829.8
814.2
830.2
812.8
929.1 923.2
791.7 785.6
923.3
765.6
778.3
947.2
960.3
787.3
791.9
788.7
784.5
892.8
897.7
897.2
908.2
914.9
918.5
931.0
799.1
809.2
813.6
817.0
824.5
828.3
842.2 830.9
871.8
876.6
897.4 898.2
Plasterer
885.1 883.6
884.1
881.1
887.3
885.8
888.0
891.3
Metal Worker
812.9
814.8
801.5
797.1
815.7
805.9
825.6
828.5
841.4 831.4
Plumber
869.4
871.1
882.3
882.9
891.9
891.7
888.5
885.6
862.7
863.7
856.2
859.8
General Workers
580.3 582.0
581.5
585.3
587.5
591.3
598.0
599.1
603.7
605.6
606.7
606.4 606.0
837.6
769.6
775.4 775.2
931.9
12
Material Cost
Trends
5,500
9,300
5,000
8,800
4,500
8,300
4,000
7,800
3,500
7,300
3,000
6,800
2,500
6,300
2,000
5,800
1,500
5,300
1,000
4,800
500
4,300
3,800
5
6
7
8
9
10
11
12
10
1
11
10
11
12
Month / Year
Building Materials
2010
2011
10
11
12
10
11
Sand ($/10 t)
730
720
720
720
720
720
720
720
720
720
720
720
760
760
760
800
840
930
940
Bitumen ($/t)
7,500
7,433
7,400
7,440
7,520
7,520
7,537
7,570
7,570
7,650
7,783
8,083
8,450
8,450
8,450
8,450
8,450
8,450
8,450
606
606
619
619
619
619
621
621
640
642
639
656
656
658
677
677
677
678
678
3,760
3,760
3,760
3,760
3,760
3,763
3,763
3,992
4,107
4,362
4,595
5,066
5,153
5,171
5,171
5,171
5,406
5,406
5,441
6,587
6,158
6,064
6,116
6,258
6,134
6,195
6,408
6,868
7,010
6,956
6,888
6,909
6,958
6,935
6,948
7,021
6,955
6,781
6,081
5,828
5,758
5,877
6,030
5,858
5,906
6,003
6,277
6,392
6,533
6,475
6,431
6,482
6,489
6,555
6,595
6,571
6,361
12
HONG KONG
REPORT
cost model
march 2012
Hospitals
Our cost model for hospital buildings in Hong Kong indicates that the unit
cost range is from HK$30,700 to HK$39,000 per m2 of construction floor area
(CFA) at 4th Quarter 2011 price level. The variance in unit costs is mainly due
to the building size and shape, number of storeys, number of beds, provision
of building services, especially for specialist services installations, etc. The
standard and services requirements to the public, such as ambulatory care,
community care, day care centre, diagnostic and treatment, etc. are also factors
affecting the unit costs.
The following items are excluded:
1. Site development costs such as site investigation, site formation, slope works
and demolition of existing building, if any.
2. External works and landscaping.
3. Furniture and equipment such as operating theatre/hospital/medical and
office equipment, linen, uniforms, etc.
4. Design, hospital consultants and resident site staff costs
5. Legal and financial expenses.
6. Pre-opening expenses, operating expenses and administrative costs.
Cost Range (at 4th Quarter 2011 price level)
Range (HK$)
1. Foundation and substructure
2,500 ~ 3,500
3,200 ~ 4,000
3. External faade
3,500 ~ 4,500
9,500 ~ 12,000
12,000 ~ 15,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
4. ABWF
3. External faade
Upper Limit
Lower Limit
Remarks:
The cost model should be regarded as guidelines to indicate the likely range of hospital building costs
for early stage cost planning. Actual costs will depend, among others, on the final design and the
eventual selection of materials.
Hong Kong
20th Floor
Eastern Central Plaza
3 Yiu Hing Road
Shaukeiwan
Hong Kong SAR
3
20
Telephone : 852 2823 1823
Facsimile : 852 2861 1283
E-mail : hongkong@hk.rlb.com
Beijing
Room 1803-1809, 18th Floor
East Ocean Centre
24A Jian Guo Men Wai Avenue
Chaoyang District
Beijing 100004
China
24A
181803-1809
100004
Telephone : 86 10 6515 5818
Facsimile : 86 10 6515 5819
E-mail : beijing@cn.rlb.com
Chengdu
Rooms 6-12, 31st Floor
Huamin Empire Plaza
1 Fuxing Street
Chengdu 610016
Sichuan Province
China
1
316-12
610016
Telephone : 86 28 8670 3382
Facsimile : 86 28 8613 6160
E-mail : chengdu@cn.rlb.com
Chongqing
Room 1801
Metropolitan Tower
No 68 Zourong Road
Central District
Chongqing 400010
China
68
1801
400010
Telephone : 86 23 6380 6628
Facsimile : 86 23 6380 6618
E-mail : chongqing@cn.rlb.com
Dalian
Room 1103
Xiwang Tower
136 Zhongshan Road
Zhongshan District
Dalian 116001
Liaoning Province
China
136
1103
116001
Telephone : 86 411 3973 7778
Facsimile : 86 411 3973 7779
E-mail : dalian@cn.rlb.com
Guangzhou
Room 601
Taikoo Hui Tower 1
385 Tian He Road
Guangzhou 510620
Guangdong Province
China
385
1
601
510620
Telephone : 86 20 8732 1801
Facsimile : 86 20 8732 1803
E-mail : guangzhou@cn.rlb.com
GUIYANG
Room E, 12th Floor
Fuzhong International Plaza
126 Xin Hua Road
Guiyang 550002
Guizhou Province
China
126
12E
550002
Telephone : 86 851 553 3818
Facsimile : 86 851 553 3618
E-mail : guiyang@cn.rlb.com
HAIKOU
Room 1708, 17th Floor
Fortune Centre
38 Da Tong Road
Haikou 570102
Hainan Province
China
38
171708
570102
Telephone : 86 898 6672 6638
Facsimile : 86 898 6672 1618
E-mail : haikou@cn.rlb.com
Hangzhou
Room 2306
Green Town Deep Blue Plaza
No. 203 Zhao Hui Road
Hangzhou 310014
Zhejiang Province
China
203
2306
310014
Telephone : 86 571 8539 3028
Facsimile : 86 571 8539 3708
E-mail : hangzhou@cn.rlb.com
Macau
Alameda Dr. Carlos D Assumpo
No. 398 Edificio CNAC 9 Andar I-J
Macau SAR
398
9I-J
Telephone : 853 2875 3088
Facsimile : 853 2875 3308
E-mail : macau@mo.rlb.com
nanjing
Room 1202, South Tower, NIC
201 Zhong Yang Road
Nanjing 210009
Jiang Su Province
China
201
1202
210009
Telephone : 86 25 8678 0300
Facsimile : 86 25 8678 0500
E-mail : nanjing@cn.rlb.com
qingdao
Room 2019, 20th Floor
Parkson Commercial Plaza
44-60 Zhongshan Road
Shinan District
Qingdao 266001
Shandong Province
China
44-60
202019
266001
Telephone : 86 532 8612 3015
Facsimile : 86 532 8612 3025
E-mail : qingdao@cn.rlb.com
Shanghai
10th Floor
Shanghai Square Office Tower
138 Huai Hai Zhong Road
Shanghai 200021
China
138
10
200021
Telephone : 86 21 6330 1999
Facsimile : 86 21 6330 2012
E-mail : shanghai@cn.rlb.com
Shenyang
25th Floor
Tower A, President Building
No. 69 Heping North Avenue
Heping District
Shenyang 110003
Liaoning Province
China
69
A25
110003
Telephone : 86 24 2396 5516
Facsimile : 86 24 2396 5515
E-mail : shenyang@cn.rlb.com
Shenzhen
Room 4510-4513,
Shun Hing Square Diwang Comm.
Centre
5002 Shennan Road East
Shenzhen 518001
Guangdong Province
China
5002
4510-4513
518001
Telephone : 86 755 8246 0959
Facsimile : 86 755 8246 0638
E-mail : shenzhen@cn.rlb.com
Tianjin
Room 1908, 19th Floor
Tianjin International Building
75 Nanjing Road
Heping District
Tianjin 300050
China
75
191908
300050
Telephone : 86 22 2339 6632
Facsimile : 86 22 2339 6639
E-mail : tianjin@cn.rlb.com
Wuhan
Room 2301
New World International Trade
Centre
No. 568 Jianshe Avenue
Wuhan 430022
Hubei Province
China
568
2301
430022
Telephone : 86 27 6885 0986
Facsimile : 86 27 6885 0987
E-mail : wuhan@cn.rlb.com
Wuxi
Room 1205-1206
Wealth Building
No. 220 Ren Min Zhong Road
Wuxi 214000
Jiangsu Province
China
220
1205-1206
214000
Telephone : 86 510 8274 0266
Facsimile : 86 510 8274 0603
E-mail : wuxi@cn.rlb.com
Xian
Room 2906, 29th Floor
Digital Plaza
Hi-Tech InternationalBusiness
Centre
33 Keji Road
Xian 710075
Shaanxi Province
China
33
292906
710075
Telephone : 86 29 8833 7433
Facsimile : 86 29 8833 7438
E-mail : xian@cn.rlb.com
Zhuhai
Room 3108, 31st Floor
Everbright International Trade
Centre
No. 47 Haibinnanlu, Jida,
Zhuhai 519015
Guangdong Province
China
47
313108
519015
Telephone : 86 756 388 9010
Facsimile : 86 756 388 9169
E-mail : zhuhai@cn.rlb.com