Tean Chee Ko
From: Arcadis Asia
Sent: Friday, September 30, 2016 8:01 PM
To: Mr. Ko Tean Chee
Subject: Quarterly Construction Cost Review - 2nd Quarter 2016
CHINA & HONG KONG QUARTERLY
CONSTRUCTION COST REVIEW
//Second Quarter 2016 Update
Market Analysis
Macro Economics: DOWNLOAD OUR COST
During a period of global uncertainty following Brexit, the Hong Kong dollar has remained REVIEWS TO YOUR SMART
strong against the majority of currencies due to its peg to the US dollar. But even before PHONE!
Brexit, the Hong Kong dollar had been continually strengthening against the Chinese Yuan.
At the end of the 2Q2016 the Hong Kong dollar had increased approximately 6.3% over the
previous 12 months. With the majority of construction materials being sourced from the To download the PDF version of our
mainland, a strong dollar has helped control Hong Kong tender prices. Cost Reviews to your Smart Phone:
/ Install an appropriate file
Crude Oil recovered over the quarter from a low price of USD30 to reach around USD50 per management application (e.g.
barrel at the end of the 2nd Quarter. USB Disk etc) from the App
Store
According to the monthly survey on retail sales, for the first half of 2016, the value of total / Click here to download the 2nd
retail sales decreased by circa 10.% compared to the same period in 2015. Quarter 2016 Issue or click
here to download previous
The Hong Kong CPI was recorded at +2.4% yoy, with an average monthly rate of decrease issues
reported at 0.3% from April to June. / Click “Open in USB Disk” (if you
have used USB Disk
1
The macro economic factors such as a strong dollar, low crude oil prices, decreasing CPI and application) from your smart
retail sales would suggest a cooling in tender price inflation. In the past few years, phone
construction tender prices have outstripped CPI, we are now entering a period when / You can go to “USB Disk” to
construction cost increases should fall more in line with CPI levels or even lower.
read the downloaded
Construction Cost Review,
Construction Input Costs: even when your phone is in
In the mainland the price of major materials have fallen in the last quarter, such as concrete Airplane mode
(3% down), copper (5% down) and cement (5% down). These falls were after a brief rebound
in 1Q2016. We saw a minor increase in steel reinforcement, but this is attributed to short term
volatility and the prices are still considered low, down by half when compared to the recent L&S COST HANDBOOK
peak of mid 2011 prices.
Labour input remains the driving force keeping construction price inflation positive in both Click here to download our 2016
mainland China and Hong Kong. In the Mainland, labour wage has increased gradually at Cost Handbook; or
around 3.6% per annum. In Hong Kong the medium monthly earnings have been stable for Go to the App Store / Google play to
trades such as plasterers, painters and welders. Wages for concretors, steel benders and download our 2016 Cost Handbook
carpenters have been edging up. After a brief spike in the Hong Kong Construction Workers App – Arcadis Cost directly to your
unemployment rate in 1Q2016, the rates seem to have corrected suggesting wages will Smart Phone
continue to rise where shortages exist.
Mainland China Outlook: L&S’s PROJECT PROFILES
The construction and installation price index in mainland China (published by the National
Bureau of Statistics) has experienced a substantial drop in 1Q2016 and a rebound in 2Q2016.
This reflects the short term material price volatility. Click here to view a selection of L&S
projects across Asia
However, the construction market of the building industry is still under strong competition due
to lack of sufficient new projects. Contractors of building works are speculating on the change SUBSCRIPTION
in material prices. Unit rates in 2Q2016 have therefore remained flat. The trend of material
prices will determine the unit rates in 3Q2016.
We trust you have found our Cost
Hong Kong Outlook: Review to be of interest. However,
Looking back, the value of work performed in 1Q2016 dropped compared to 4Q2015, please click here should you wish to
however, it still remains higher than 1Q2015, suggesting that contractors are busy completing unsubscribe from our Quarterly
projects. However, the slowing macroeconomic factors mean that contractors may not be Review
confident in future orders. The completion of major projects and reduced workload forecast
in the coming 12 months in Macau is also having an impact on pricing as contractors look to
secure new work. Our inflation forecast has been revised down and it is anticipated that prices CONTACT US
will remain flat during 2016 as contractors pass on the benefits of lower input costs in their
tenders.
ARCADIS ASIA LIMITED
LANGDON & SEAH HONG KONG
LIMITED
LANGDON & SEAH CHINA
LIMITED
Tel 852-2830 3500
Fax 852-2576 0416
Email
[email protected] Contact Francis Au,
Head of Hong Kong &
Macau
Web www.arcadis.com
Approximate Building Costs in Hong Kong
Building Type HK$/m2 CFA Outline Specification
DOMESTIC
2
Apartments, high rise, public authority 11,000 - 14,000 Apartment units with fit-out, based on Hong Kong Housing
standard Authority Non-standard Cruciform Block design
Apartments, high rise, average 24,500 - 28,800 Apartment units with fit-out, including air-conditioning, kitchen
standard 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 air-
conditioning, 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 24,000 - 28,500 RC structure, curtain wall/window wall, including public area
standard 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 24,500 - 28,800
standard 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, 18,800 - 23,900 RC structure, including small office with simple fit-out and
light weight industry M&E, but excluding a/c and heating
HOTEL
Budget hotels - 3-star, mid market 31,300 - 33,800
1) Interior decoration
2) Furniture (fixed and movable)
Business hotels - 4/5-star 32,800 - 38,800 3) Special light fittings (chandeliers, etc.)
4) Operating Supplies and Equipment (OS&E) excluded
Luxury hotels - 5-star 38,400 - 44,500
OTHERS
Underground/basement car parks (<3 18,500 - 23,000 RC structure
levels)
Multi storey car parks, above ground 11,500 - 13,500 RC structure, natural ventilaion, no facade enclosure
(<4 levels)
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
3
Sports clubs, multi purpose 31,000 - 35,000 Dry sports (no swimming pool) and are for 'leisure centre' type
sports/leisure centres (dry sports) schemes including main sports hall, ancillary sports facilities,
changing and showers, restaurant / café, 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 bulidings 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.
Construction & Installation Price Index
– Mainland China
Construction & Installation Price Index
Published (by NBS of China) Projected (by Arcadis)
Index (Base : Corresponding Quarter in (Base : Q4/2002 = 100)
Preceding Year = 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 99.1 155.1 156.2 153.3 152.0
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
4
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.
Tender Price Index - Hong Kong
5
Quarter / Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
ASD BWTPI (Base = 100, at Year 1970)
Q1 821 1118 1074 1134 1273 1414 1516 1621 1732 1775
Q2 859 1305 983 1161 1320 1438 1532 1648 1761
Q3 906 1401 1111 1249 1369 1467 1559 1679 1777
Q4 998 1262 1107 1266 1408 1496 1590 1703 1775
ASD BSTPI (Base = 100, at Year 1989)
Q1 124 148 128 130 149 149 193 211 (N/A) 257
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 1020 1239 1245 1297 1385 1511 1688 1789 1946 1992
Q2 1074 1360 1242 1315 1425 1552 1713 1808 1958 1992
Q3 1175 1355 1253 1342 1452 1595 1747 1857 1963 1992*
Q4 1150 1281 1273 1367 1491 1632 1786 1903 1984 1992*
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. [*] denotes forecast figures
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2. 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.
3. 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.
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% (-)3.0%
3rd Quarter (-)1.6% (-)3.7%
4th Quarter (-)2.4% (-)8.2%
Source : National Bureau of Statistics of China
Basic Construction Materials
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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% (+)3.6%
3rd Quarter (+)5.7% (+)3.9%
4th Quarter (+)5.9% (+)4.3%
Source : National Bureau of Statistics of China
Hong Kong SAR
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No. of Workers Employed by
Age Group
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 Mar 2016) : 378,840 100.0%
Source : Census & Statistics Department, Hong Kong SAR
Gross Value of Construction Work Performed
– Hong Kong
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Value Performed (HK$ Million)
Quarter
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
A. Private sector sites
1st Quarter 6,959 8,382 8,600 6,349 7,529 11,209 11,675 13,395 15,528 17,563*
2nd Quarter 7,429 8,122 9,055 9,276 8,458 12,260 12,176 12,507 17,284
3rd Quarter 6,582 7,688 8,408 7,360 9,192 12,481 11,848 12,792 16,849
4th Quarter 8,004 9,303 7,543 7,322 10,102 13,411 13,781 15,259 18,119
Year Total : 28,974 33,495 33,606 30,307 35,281 49,361 49,480 53,953 67,781
B. Public sector sites
1st Quarter 4,293 3,819 3,967 6,511 9,880 13,168 16,829 18,258 18,531 19,088*
2nd Quarter 3,575 3,762 4,652 6,937 9,263 12,023 14,690 15,397 18,964
3rd Quarter 3,105 3,653 4,428 8,651 10,814 12,137 13,792 16,253 18,163
4th Quarter 3,530 4,105 5,605 9,117 12,113 17,332 16,976 18,915 21,585
Year Total : 14,503 15,339 18,652 31,216 42,070 54,660 62,287 68,824 77,242
C. Location other than sites
1st Quarter 10,995 11,883 11,750 11,926 12,172 13,347 15,140 17,909 19,549 21,722*
2nd Quarter 11,979 13,213 12,415 12,109 11,620 13,245 15,914 20,327 18,744
3rd Quarter 13,057 12,818 11,969 12,620 12,953 14,358 16,038 18,636 19,520
4th Quarter 13,358 12,851 12,552 13,097 14,439 16,479 17,716 20,088 21,111
Year Total : 49,389 50,765 48,686 49,752 51,184 57,429 64,809 76,960 78,924
Annual gross value performed (A + B + C)
Total : 92,866 99,599 100,944 111,275 128,535 161,450 176,575 199,737 223,947
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* Provisional
Source: Census and Statistics Department, Hong Kong SAR
Approximate Building Costs for Major Cities in Asia
Guangzhou Chongqing
Shanghai Beijing Dalian Shenyang
Building Type / Shenzhen / Chengdu
RMB / m2 CFA
DOMESTIC
Apartments, high rise,
average standard
- Shell and core 2,470 - 2,850 2,500 - 2,900 2,210 - 2,450 2,200 - 2,500 2,360 - 2,540 2,260 - 2,450
- Full fit 4,280 - 4,750 4,000 - 4,400 3,310 - 3,650 3,100 - 4,100 3,570 - 4,140 3,300 - 3,760
Apartments, high rise,
high end
- Shell and core 3,050 - 3,330 3,000 - 4,400 2,280 - 3,050 2,600 - 3,200 2,720 - 3,100 2,630 - 3,010
- Full fit 10,460 - 11,420 10,000 - 11,400 5,500 - 6,060 5,000 - 6,600 6,780 - 7,430 5,410 - 6,120
Terraced houses, average
standard
- Shell and core 2,850 - 3,050 2,900 - 3,400 2,490 - 2,750 2,500 - 3,000 2,630 - 3,020 2,450 - 2,820
- Full fit N/A 5,900 - 6,400 N/A N/A N/A N/A
Detached houses, high
end
- Shell and core 4,280 - 4,750 4,400 - 4,900 3,410 - 3,750 3,400 - 4,000 3,570 - 3,960 3,300 - 3,580
- Full fit N/A 11,400 - 11,900 N/A N/A N/A N/A
OFFICE / COMMERCIAL
Medium/high rise offices, 5,700 - 7,600 5,700 - 7,700 4,810 - 5,320 5,100 - 6,100 5,370 - 5,740 5,180 - 5,640
average standard
High rise offices, prestige 7,600 - 9,500 7,700 - 12,700 6,630 - 7,320 6,500 - 9,000 7,340 - 7,720 7,060 - 8,000
quality
Out-of-town shopping N/A 4,400 - 5,900 4,580 - 5,050 4,000 - 5,300 4,700 - 5,280 4,240 - 4,700
centre, average standard
Retail malls, high end 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. 3,330 - 3,800 3,400 - 3,900 3,130 - 3,450 2,800 - 3,700 N/A N/A
(Conventional single
storey framed unit)
Owner operated factories, N/A N/A N/A N/A N/A N/A
low rise, light weight
industry
HOTEL
Budget hotels - 3-star, mid 6,180 - 7,600 6,400 - 7,900 6,230 - 6,880 6,000 - 7,500 6,400 - 6,960 6,220 - 6,870
market
Business hotels - 4/5-star 10,450 - 14,250 10,900 - 13,900 10,060 - 11,110 10,500 - 13,500 10,810 - 12,240 9,410 - 12,240
Luxury hotels - 5-star 14,250 - 17,100 13,900 - 17,900 13,720 - 15,150 N/A N/A N/A
OTHERS
Underground/basement 4,750 - 6,660 4,900 - 5,400 3,160 - 5,060 N/A N/A 3,560 - 3,960
car parks (<3 levels)
Multi storey car parks, 2,370 - 3,330 2,900 - 3,400 2,260 - 2,490 2,100 - 2,500 2,310 - 2,410 2,210 - 2,380
above ground (<4 levels)
Schools (primary and 3,330 - 4,280 3,400 - 4,400 2,500 - 2,770 N/A N/A N/A
secondary)
Students' residences 2,370 - 3,330 2,400 - 3,400 1,600 - 1,770 N/A N/A N/A
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Sports clubs, multi 6,180 - 7,600 5,900 - 7,900 4,690 - 5,180 N/A N/A N/A
purpose sports/leisure
centres (dry sports)
General hospitals - public 9,500 - 12,350 7,900 - 9,900 N/A N/A N/A N/A
sector
Kuala
Hong Kong Macau Singapore Bangkok
Lumpur
Building Type
USD / m2 CFA (See also exchange rates per U.S. dollar below)
HK$7.80 MOP 7.98 S$1.36 RM 4.01 BAHT 34.92
DOMESTIC
Apartments, high rise, average standard
- Shell and core N/A 1,692 - 2,506 N/A N/A 487 - 573
- Full fit 3,140 - 3,690 2,168 - 2,657 1,400 - 1,585 340 - 510 616 - 744
Apartments, high rise, high end
- Shell and core N/A 2,506 - 3,734 N/A N/A 587 - 759
- Full fit 4,240 - 4,940 3,008 - 4,612 2,135 - 3,165 815 - 975 916 - 1,088
Terraced houses, average standard
- Shell and core N/A 2,945 - 3,672 N/A N/A 286 - 372
- Full fit 4,310 - 5,030 3,697 - 4,386 1,805 - 2,025 235 - 340 430 - 515
Detached houses, high end
- Shell and core N/A 3,571 - 5,125 N/A N/A 501 - 716
- Full fit 5,580 - 6,350 4,486 - 5,802 2,280 - 3,015 790 - 985 744 - 902
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 3,080 - 3,650* 2,481 - 3,221 1,805 - 1,985@ 640 - 745 601 - 744#
High rise offices, prestige quality 3,820 - 4,710 3,221 - 3,496 1,985 - 2,210@ 925 - 1,255 787 - 1,002##
Out-of-town shopping centre, average standard 3,140 - 3,690 2,343 - 3,496 1,985 - 2,135 565 - 680 587 - 759
Retail malls, high end 4,180 - 4,960 3,697 - 4,398 2,135 - 2,355 705 - 910 787 - 816
INDUSTRIAL
Industrial units, shell only. (Conventional single N/A N/A 760 - 975 340 - 425 458 - 573
storey framed unit)
Owner operated factories, low rise, light weight 2,410 - 3,060 N/A N/A 460 - 515 N/A
industry
HOTEL
Budget hotels - 3-star, mid market 4,010 - 4,330 3,321 - 3,747 2,245 - 2,430 1,070 - 1,490 1,074 - 1,188
Business hotels - 4/5-star 4,210 - 4,970 4,486 - 5,376 2,870 - 3,235 1,845 - 2,160 1,374 - 1,575
Luxury hotels - 5-star 4,920 - 5,710 5,376 - 6,491 2,870 - 3,235 2,055 - 2,395 1,604 - 1,718
OTHERS
Underground/basement car parks (<3 levels) 2,370 - 2,950 1,967 - 2,857 975 - 1,325 385 - 525 515 - 673
Multi storey car parks, above ground (<4 levels) 1,470 - 1,730 1,090 - 1,416 685 - 975@@ 215 - 280 172 - 275
Schools (primary and secondary) 2,590 - 2,810** 2,168 - 2,481 N/A 230 - 260 N/A
Students' residences 2,540 - 2,950 1,729 - 1,980 1,655 - 1,805 295 - 325 N/A
Sports clubs, multi purpose sports/leisure 3,970 - 4,490 N/A 2,060 - 2,210 620 - 680 N/A
centres (dry sports)
General hospitals - public sector 5,130 - 5,830 N/A 2,870 - 3,015 920 - 1,145 N/A
Jakarta Brunei Manila Seoul
Building Type USD / m2 CFA (See also exchange rates per U.S. dollar below)
IDR 13,315 B$1.34 PHP 46.52 KRW 1,163
DOMESTIC
Apartments, high rise, average standard
12
- Shell and core N/A N/A N/A 981 - 1,161 ▲
- Full fit 672 - 761 798 - 1,096 875 - 1,031 1,325 - 1,591 ▲
Apartments, high rise, high end
- Shell and core N/A N/A N/A 1,041 - 1,256▲▲
- Full fit 927 - 1,046 986 - 1,283 1,202 - 1,544 1,591 - 1,961▲▲
Terraced houses, average standard
- Shell and core N/A N/A N/A N/A
- Full fit 357 - 463 516 - 814 807 - 958 N/A
Detached houses, high end
- Shell and core N/A N/A N/A 998 - 1,230
- Full fit 970 - 1,084 785 - 1,083 1,564 - 2,004 2,159 - 3,286
OFFICE / COMMERCIAL
Medium/high rise offices, average 663 - 734 798 - 1,096 718 - 944 1,178 - 1,359
standard
High rise offices, prestige quality 978 - 1,093 1,129 - 1,426 1,107 - 1,386 1,359 - 1,677
Out-of-town shopping centre, average 569 - 629 774 - 1,072 535 - 954 1,101 - 1,712
standard
Retail malls, high end 629 - 680 1,021 - 1,319 1,082 - 1,670 1,290 - 2,133
INDUSTRIAL
Industrial units, shell only. (Conventional 306 - 332 368 - 666 458 - 769 645 - 826▲▲▲
single storey framed unit)
Owner operated factories, low rise, light 332 - 366 501 - 799 667 - 789 N/A
weight industry
HOTEL
Budget hotels - 3-star, mid market 1,151 - 1,361 1,509 - 1,807 1,016 - 1,277 1,609 - 2,022 ▲▲▲▲
Business hotels - 4/5-star 1,573 - 1,700 2,128 - 2,426 1,330 - 1,826 2,254 - 3,888 ▲▲▲▲
Luxury hotels - 5-star 1,675 - 1,888 2,185 - 2,483 2,065 - 2,548 2,503 - 4,000 ▲▲▲▲
OTHERS
Underground/basement car parks (<3 472 - 578 N/A 466 - 585 920 - 1,084 ▲▲▲▲▲
levels)
Multi storey car parks, above ground (<4 306 - 332 409 - 707 478 - 838 568 - 740
levels)
Schools (primary and secondary) N/A 599 - 896 740 - 1,183 1,290 -1,505
Students' residences N/A 700 - 998 708 - 808 1,351 - 1,462
Sports clubs, multi purpose 1,034 - 1,550 1,610 - 1,908 764 - 1,533 N/A
sports/leisure centres (dry sports)
General hospitals - public sector N/A 1,810 - 2,107 1,389 - 1,827 N/A
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
13
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
RC structure, curtain wall, including public area fit-out, tenant area with
raised floor/carpet, painted wall and false ceiling
High rise offices, prestige quality
Out-of-town shopping centre, average standard
Including public area fit-out and M&E, but excluding shop fit-out
Retail malls, high end
INDUSTRIAL
Industrial units, shell only. (Conventional single RC structure with steel roof and M&E to main distribution, but excluding a/c,
storey framed unit) heating and lighting
Owner operated factories, low rise, light weight RC structure, including small office with simple fit-out and M&E, but
industry excluding a/c and heating
HOTEL
Budget hotels - 3-star, mid market
1) Interior decoration
2) Furniture (fixed and movable)
Business hotels - 4/5-star
3) Special light fittings (chandeliers, etc.)
4) Operating Supplies and Equipment (OS&E) excluded.
Luxury hotels - 5-star
OTHERS
Underground/basement car parks (<3 levels) RC structure
Multi storey car parks, above ground (<4 levels) RC structure, natural ventilaion, no facade enclosure
Schools (primary and secondary) Including fit-out and a/c, but excluding educational equipment
Students' residences Including fit-out, loose furniture and a/c
Sports clubs, multi purpose sports/leisure Dry sports (no swimming pool) and are for 'leisure centre' type schemes
centres (dry sports) including main sports hall, ancillary sports facilities, changing and showers,
restaurant / café, 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 bulidings 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
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Singapore: @ Excluding carpet @@ Open on all sides with parapet
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
Seoul ▲▲ Curtain wall to external wall
▲▲▲ Steel structure
▲▲▲▲ Medium to high grade cladding, with garden
▲▲▲▲▲ Mechanical ventilation and car guidance system
Fit-Out Costs for Hong Kong
Building Type HK$/m2 Building Type HK$/m2
HOTELS DEPARTMENT STORES
Public Areas (Front of House): General department store 7,500 - 12,000
3-Star Hotel 10,000 - 14,500 Prestige department store 12,000 up
4-Star Hotel 15,000 - 21,000
5-Star Hotel 21,000 up
Guest Rooms:
3-Star Hotel 8,500 - 10,000
4-Star Hotel 10,000 - 13,500
5-Star Hotel 13,000 up
Notes: Notes:
1. Includes furniture, floor, wall and ceiling finishes, drapery, sanitary fittings and 1. Includes electrical work, additional FCU and minor alteration
light fittings. of fire services to suit layout.
2. Excludes partitioning, M&E works, building shell, chandeliers, operational items 2. Excludes facade modification, data cabling, operational
and equipment (e.g. cutlery, crockery, linen, television, refrigerator, etc.), items and equipment (e.g. computers, P.O.S., office
opening expenses, stage equipment and computer systems. equipment) and opening expenses.
OFFICES RESTAURANTS
General office 6,000 - 9,500
Executive office 9,500 - 13,000 General dining restaurant 10,000 - 19,500
Prestige office 13,000 up Fine dining restaurant 22,000 up
Notes: Notes:
1. Local/Taiwanese/PRC furniture allowed for general offices. 1. Includes furniture, floor, wall and ceiling finishes, electrical
2. Includes furniture, partitioning, electrical work, minor alteration to air- work, minor alteration to air-conditioning and fire services
conditioning, fire services and suspended ceiling to suit layout. installation to suit layout, exhaust for kitchen.
3. Excludes telephones, data cabling, office equipment (e.g. computers, 2. Excludes exhaust flue, operational items (e.g. cutlery,
photocopiers, fax machines, UPS, etc). crockery, linen, utensils, etc.).
* The above costs are at 4th Quarter 2015 levels. The costs per square metre are based on fit-out area measured to the inner face of the perimeter wall.
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