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QUARTERLY CONSTRUCTION COST REVIEW HONG KONG
Transcript of QUARTERLY CONSTRUCTION COST REVIEW HONG KONG
DAVIS LANGDON & SEAHHong Kong
QUARTERLY
CONSTRUCTION COST
REVIEW
HONG KONG
VISIT OUR WEB-SITE
Our Quarterly Cost Data web-site address is http://www.dlshk.com.
Our international web-site address is http://www.davislangdon.com.
Overview 1
Approximate Building Costs in Hong Kong 2
General Trend of Building Works Tender Prices in Hong Kong 3
Labour Index & Average Daily Wage of Workers Engaged 4in Public Sector Construction Projects
Material Index & Average Material Prices 5
Usable Floor Areas Completed / With Consent to Commence 6
Gross Value of Construction Work Performed and 7Building Cost Index
Approximate Building Costs for Major Cities in China 8
Approximate Building Costs for Major Cities in S.E. Asia 9
CONTENTS
Statistical data are compiled from sources deemed reliable but accuracy is not guaranteed.All rights reserved. Reproduction of this data, in whole or in part, is permitted providing the sourceis quoted.
OVERVIEW
1
1st Quarter 2008
QuarterlyConstruction CostReview
In December 2007, the Hong Kong Governmentissued a consultation paper, inviting views from thecommunity on the mandatory implementation of theBuilding Energy Codes (BEC). The paper proposedthat certain types of buildings should comply withthe Codes to help reduce energy consumption,which in turn would lead to a reduction ingreenhouse gas emissions – a crucial criterion forsustainable development.
Types of buildings covered by the consultationexercise are commercial buildings and thecommunal areas of residential and industrialbuildings, notwithstanding new-builds or existing, inboth public and private sectors.
The BEC set out performance requirements on fourbuilding services systems, viz l ighting, air-conditioning, electrical (e.g. pumps, motors,electrical distribution systems, etc.) and lift &escalator installations. The paper reveals that thesefour systems consume almost 80% of the powersupply for a typical office building. Key criteria setout in the BEC are comparable to those required onthe Mainland and overseas, except those for lifts &escalators.
As there are no overseas references on energy codesfor lifts and escalators, the relevant clauses in theBEC are developed by EMSD for the high-rise-dominated environment in Hong Kong.
It is estimated that the proposed higher efficiencyequipment and monitoring devices required to meetthe stipulated provisions would increase buildingcapital construction costs by 3%-5%. However, theestimated annual savings in electricity tariffs couldbe as much as 10%-15%. Studies have indicated apay-back period of approximately 15 years.
While the savings would be welcomed by the end-users of the buildings, the increased initialconstruction costs would undoubtedly become amajor consideration for speculative developers.Coupled with the current escalation in structural costsdue to sharp steel price rises, developers would haveto exercise closer control on construction expenditureto maintain the profitability of their developments.
Maximum Allowable Light Power Density (W/m2)
Region USA Mainland Hong Kong
Energy Standard ASHRAE 90.1 GB 50034 BEC
Office 11.8 - 16.1 11 - 18 1 7
Retail 18.3 11 - 20 2 0
Restaurant 1 5 1 3 2 3
Coefficient of Performance of Air-Conditioning Chillers
Region USA Mainland Hong Kong
Energy Standard ASHRAE 90.1 GB 50189 BEC
Air cooled 2.80 2.40 - 2.60 2.70 - 2.90
Water cooled, 500 -1,000 kW 4.90 - 5.50 4.30 - 4.70 4.50 - 4.60
Water cooled, >1,000 kW 5.50 - 6.10 4.60 - 5.10 5.50 - 5.70
Minimum Efficiency (%) of Electrical Motors
Region USA Mainland Hong Kong
Energy Standard ASHRAE 90.1 GB 50189 BEC
5.5 - 22kW 89.5 - 92.4 85.7 - 90.0
22 - 55kW 92.4 - 93.6 90.5 - 92.5
55 - 90kW 94.1 - 94.5 93.0 - 93.6
No specificrequirement
Maximum Allowable Electrical Power (kW)of Traction Lifts (BEC Hong Kong)
Lift Speed 3 - 4m/s 4 - 5m/s 5 - 6m/s
750 - 1,000kg 25.7 - 29.5 30.4 37.1
1,000 - 1,350kg 34.2 - 38.0 42.8 49.4
1,350 - 1,600kg 40.9 - 46.6 49.4 58.9
Maximum Allowable Electrical Power (W) of Escalators(1,000mm step width at a rated speed of 0.5m/s; no-load)
Usage Private Use Public Use
3.5 - 5.0m Rise 1,520 - 1,900 2,138 - 2,518
5.0 - 6.5m Rise 2,214 2,898
6.5 - 8.0m Rise 2,613 3,278
Davis Langdon & Seah
APPROXIMATE BUILDING COSTS IN HONG KONG
BUILDING TYPE COST (HK$/m2 CFA)
DOMESTIC
Low cost housing, high rise ................................... 5,700 - 6,050
Average standard apartments, high rise ............... 10,600 - 11,400
Luxury apartments, high rise .................................. 12,550 - 14,850
Terraced houses ..................................................... 15,600 - 17,500
Luxury houses ......................................................... 22,100 up
OFFICE / SHOPPING CENTRE
Average standard offices, high rise ........................ 12,850 - 15,000
Prestige offices, high rise ....................................... 17,400 up
Average standard shopping centres ...................... 13,350 - 16,350
Prestige shopping centres ..................................... 17,600 up
INDUSTRIAL
Light duty flatted factories, high rise,
7.5kpa (150 lb.) loading .......................................... 7,350 - 8,150
Heavy duty flatted factories & warehouses,
high rise, 15kpa (300lb.) loading ........................... 7,900 - 9,000
Industrial - Office buildings ..................................... 9,600 - 11,850
HOTEL
3-Star hotels, inclusive of F.F.&E. ............................ 16,700 - 18,550
5-Star hotels, inclusive of F.F.&E. ............................ 22,450 up
OTHERS
Carparks, above ground ......................................... 5,850 - 6,900
Primary and secondary schools ............................. 9,350 - 10,100
International schools .............................................. 11,650 - 13,100
SPECIFICATION
1. Low cost housing based on Hong KongHousing Authority Non-standard CruciformBlock design.
2. Average standard apartments to be 30 -50 storeys, 600 - 1,000 ft2 per flat.
3. Apartments and houses include air-conditioning, kitchen cabinets and homeappliances, but exclude fitting out worksand loose furniture.
1. Offices based on buildings 20 - 30 storeys highwith floor plans minimum 1,000m2 per level.
2. Shopping centres and average standardoffices exclude finishes, A/C ducting &light fittings to tenant areas.
3. Prestige offices are fitted with raisedfloor, suspended ceiling, A/C ducting andlight fittings to tenant areas.
1. Flatted factories and industrial-officebuildings exclude manufacturingequipment, special services provisions,air-conditioning and electrical distributionsystem to tenant areas.
1. F.F.&E. includes interior decoration andloose furniture etc. but excludes pre-opening expenses and hotel operationsystem & equipment costs (e.g. cutlery,crockery, linen, uniform, etc.).
2. Buildings include 1 level of basement.
1. Carparks to be multi-storey.
2. Primary and secondary schools areallowed with standard governmentprovisions.
3. Schools include external works butexclude F.F.&E.
1ST QUARTER 2008
2
Notes: The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understoodthat the actual cost of a building will depend upon the design and many other factors and may vary from the figure shown.
The costs per square metre are based on Construction Floor Areas measured to the outside face of the external walls / externalperimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and sitecondition. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
GENERAL TREND OF BUILDING WORKS TENDER PRICES IN HONG KONG(Including labour, materials, plant, overheads & profit)
Source: Competitive tenders received by Davis Langdon & Seah Hong Kong and the ASD Building Works Tender Price Index (BWTPI).
Notes: 1. The index measures the trend of general builder’s works only. Special works and Mechanical and Electrical Services wouldhave to be considered separately.
2. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1996 and onwards are givenin details, whereas indices of Year 1970 - 1995 are shown with their 4th Quarter figures.
3
Quarter Index
ASD TPI (Base = 100, at Year 1970)
Q1 1,103 1,024 959 862 687 720 685 711 714 821
Q2 1,054 1,031 873 842 742 723 712 716 730 859
Q3 1,065 1,025 858 807 692 722 704 718 751 906
Q4 1,034 989 844 721 733 681 701 697 789 998
DLS TPI (Base = 100, at Year 1970)
Q1 1,295 1,185 1,079 990 915 855 940 945 970 1,020 1,239
Q2 1,259 1,164 1,057 960 890 878 952 955 980 1,074
Q3 1,227 1,148 1,040 945 875 895 933 963 985 1,175
Q4 1,207 1,130 1,020 935 840 895 930 970 990 1,150
Year1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0
200
400
600
800
1,000
1,200
1,400
70 72 74 76 78 80 82 84 86 88 90 92 94 96 97 98 99 00 01 02 03 04 05 06 07 08
Year
Index
ASD BWTPI DLS TPI ASD BWTPI (as at the 4th Quarter) DLS TPI (as at the 4th Quarter)
Davis Langdon & Seah
LABOUR INDEX & AVERAGE DAILY WAGE OF WORKERS ENGAGED INPUBLIC SECTOR CONSTRUCTION PROJECTS
4
General Workers 566 566 568 566 566 569
Concretor 930 929 928 915 924 948
Bar Bender and Fixer 1,073 1,067 1,071 1,071 1,077 1,073
Carpenter (formwork) 945 941 948 951 968 988
Plumber 775 775 796 782 792 779
Plasterer 823 826 842 817 824 806
Painter and Decorator 738 729 746 742 747 741
Electrical Fitter (incl. Electrician) 688 691 686 680 672 686
Bricklayer 854 839 869 853 854 826
Drainlayer 816 800 806 786 810 821
Metal Worker 782 780 795 786 795 793
Joiner 822 826 905 879 914 896
Construction Plant Mechanic 757 716 729 706 725 722
Glazier 802 772 832 799 838 864
Bamboo Scaffolder 1,063 1,051 1,077 1,036 1,050 1,028
Structural Steel Erector 897 869 904 891 890 898
Asphalter (road construction) 792 698 724 713 713 706
Mechanical Fitter 673 685 696 686 695 670
Average Daily Wage (HK$)
Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08
Source:Census & Statistics Department
Note: All indices were published monthly. For reference purpose, only indices from 1st quarter of 1996 and onwards are averagedon quarterly basis, whereas those published during Year 1973 - 1995 are averaged on yearly basis.
Selected Trade
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Q1 2,916 3,304 3,488 3,504 3,600 3,570 3,574 3,458 3,375 3,253 3,420
Q2 2,977 3,390 3,472 3,538 3,581 3,588 3,529 3,406 3,356 3,316 3,372
Q3 3,035 3,442 3,495 3,576 3,579 3,583 3,510 3,419 3,288 3,357 3,250
Q4 3,184 3,483 3,516 3,629 3,564 3,561 3,457 3,395 3,260 3,376 3,193
Quarter Index (Base = 100, at Year 1970)
Year
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
70 72 74 76 78 80 82 84 86 88 90 92 94 96 97 98 99 00 01 02 03 04 05 06 07Year
Index
Labour Index Labour Index (yearly average)
Average Material Price (HK$)Selected Material Unit
Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08
Mild Steel Round Bars (6mm-20mm) t 5,387 5,400 5,500 5,847 5,809 6,538
High Tensile Steel Bars (10mm-40mm) t 5,379 5,421 5,492 6,346 6,656 7,634
Portland Cement t 525 528 530 530 517 518
Hardwood m3 3,340 3,346 3,358 3,475 3,475 3,481
Plywood (19mm thick) m2 67 63 63 63 63 63
Concrete Blocks (100mm thick) m2 43 43 45 45 48 51
Aggregates (All grades) t 41 42 39 41 42 ***
Sand t 57 56 56 57 57 58
Galvanised Mild Steel Angles t 11,072 11,072 11,084 11,159 12,240 13,328
Homogeneous non-slip floor tiles (200 x 200mm) m2 110 112 118 118 120 123
UPVC lined GMS pipes (20mmfl x 5.5m long) No. 166 166 166 166 166 ***
Clear Sheet Glass (5mm) m2 87 87 92 92 96 96
Emulsion Paint litre 36 36 36 37 37 37
Source:Census & Statistics Department
Note: All indices were published monthly. For reference purpose, only indices from 1st quarter of 1996 and onwards are averagedon quarterly basis, whereas those published during Year 1973 - 1995 are averaged on yearly basis.
*** denotes statistics not released for publication by Census & Statistics Department.
MATERIAL INDEX & AVERAGE MATERIAL PRICES
5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Q1 786 787 746 762 762 752 759 784 783 778 788
Q2 785 769 748 761 759 753 759 779 782 779 806
Q3 786 751 754 759 757 755 758 779 778 775 816
Q4 792 746 758 764 754 756 763 780 780 780 839
Quarter Index (Base = 100, at Year 1970)
Year
0
100
200
300
400
500
600
700
800
900
70 72 74 76 78 80 82 84 86 88 90 92 94 96 97 98 99 00 01 02 03 04 05 06 07
Year
Index
Material Index Material Index (yearly average)
Davis Langdon & Seah
USABLE FLOOR AREAS COMPLETED / WITH CONSENT TO COMMENCE
Year
Quarter
Source:Census and Statistics Department and Buildings Department
Notes: 1. As from January, 2003 onwards, statistics by Buildings Department on Consent to Commence are published with 2sub-divisions, viz “First Submission” and “Major Revision”. The 2 sub-divisions are added together to compare with past data.
2. Figures marked with “ * ” have been revised as per Hong Kong Monthly Digest Statistics, June Edition.
3. Figure marked with “ # ” includes units of the Hunghom Peninsula, which were converted from Private Sector ParticipationScheme to private buildings (Total 81,900m2), as per Hong Kong Monthly Digest of Statistics, June Edition.
6
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Total usable floor area completed (’000m2)
Q1 239 690 492 355 275 318 253 324 292 232 225
Q2 656 666 766 408 351 378 425 451# 388 322 271
Q3 383 689 498 234 312 678 454 590 259 333 126
Q4 571 482 822 479 417 586 455 356 288 502 407
Total usable area with consent to commence (‘000m2)
Q1 786 472 718 689 493 229
Q2 1,127 601 174 203 355 418
Q3 428 407 749 528 170 368
Q4 610 659 550 430 370 356
First submissionMajor revision
First submissionMajor revision
First submissionMajor revision
First submissionMajor revision
291 431 195 52 130194 69 88 168 129
142 187 255 120 355201 81 141 129 107
376 136* 165 317 30172 58* 86 173 218
338 100 290 249 20569 53 257 191 94
Usable Floor Area
0
200
400
600
800
1,000
1,200
96 97 98 99 00 01 02 03 04 05 06 07
Year
‘000m2
Area completed Area with consent to commenceArea with consent to commence - First submission Area with consent to commence - Major revision
* Provisional
Source: Census and Statistics Department
Notes: 1. All value performed were published quarterly. For reference purpose only, figures from 1st quarter of 1996 and onwards aregiven in details. Those quarterly totals for the period Year 1983 - 1995 are, on the other hand, averaged on yearly basis.
2. All indices were published monthly. For reference purpose, only indices from 1st quarter of 1996 and onwards are averagedon quarterly basis, whereas those published during Year 1973 - 1995 are averaged on yearly basis.
GROSS VALUE OF CONSTRUCTION WORK PERFORMEDAND BUILDING COST INDEX
Value Performed / IndexQuarter
Year
7
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Gross Value Quarterly Performed (HK$ Million)
Q1 31,505 33,961 32,439 31,099 28,649 26,888 24,775 23,068 23,229 21,973 22,247
Q2 32,384 34,605 31,161 29,615 27,717 27,416 25,681 22,912 22,343 22,464 22,983
Q3 32,274 32,193 31,255 30,419 27,080 25,740 24,827 23,162 22,612 22,302 22,744
Q4 35,338 32,557 31,582 30,940 30,540 25,956 23,749 24,030 22,667 23,492 24,715*
Building Cost Index (BCI) (Base = 100, at Year 1970)
Q1 1,539 1,677 1,716 1,732 1,765 1,749 1,754 1,730 1,700 1,653 1,719
Q2 1,560 1,696 1,711 1,743 1,757 1,756 1,739 1,708 1,692 1,676 1,713
Q3 1,582 1,703 1,724 1,755 1,755 1,755 1,731 1,712 1,666 1,688 1,677
Q4 1,638 1,714 1,734 1,777 1,748 1,748 1,716 1,705 1,657 1,698 1,671
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
70 72 74 76 78 80 82 84 86 88 90 92 94 96 97 98 99 00 01 02 03 04 05 06 07
Year
(HK$ Million)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Index
Gross value quarterly performed Gross value quarterly performed (yearly average)Building Cost Index (BCI) Building Cost Index (BCI) (yearly average)
Davis Langdon & Seah8
BUILDING TYPE
DOMESTIC
Average standard apartments, high rise .......
Luxury apartments, high rise ..........................
Terraced houses .............................................
Luxury houses .................................................
OFFICE / SHOPPING CENTRE
Average standard offices, high rise ................
Prestige offices, high rise ...............................
Average standard shopping centres ..............
Prestige shopping centres .............................
INDUSTRIAL
Light duty flatted factories, high rise,7.5kpa (150 lb.) loading ..................................
Heavy duty flatted factories and warehouses,high rise, 15kpa (300lb.) loading ...................
Single storey conventional factorywith structural steel roof ..................................
HOTEL
Resort hotels, inclusive of F.F.&E. ..................
3-Star hotels, ditto ...........................................
5-Star hotels, ditto ...........................................
OTHERS
Carparks, above ground .................................
1ST QUARTER 2008
APPROXIMATE BUILDING COSTS FOR MAJOR CITIES IN CHINA
(USD/m2 CFA)
REGION
1,410 1,119 522 456 455
1,755 1,413 673 627 530
2,120 N/A 565 413 390
2,830 N/A 738 623 545
1,775 N/A 857 713 665
2,230 N/A 1,094 1,004 920
1,900 1,653 932 883 700
2,250 2,397 1,148 1,026 1,030
995 N/A N/A N/A N/A
1,085 N/A N/A N/A N/A
N/A N/A 490 445 430
N/A N/A 1,202 N/A N/A
2,160 2,638 986 924 900
2,880 3,382 1,526 1,561 1,330
815 647 360 385 290
Notes : The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understoodthat the actual cost of a building will depend upon the design and many other factors and may vary from the figure shown.
The costs per square metre are based on Construction Floor Areas measured to the outside face of the external walls / externalperimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and sitecondition. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
The standard for each category of building vary from country to country and do not necessarily follow those of Hong Kong.
Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
HONG KONG MACAU SHANGHAI BEIJING
Exchange Rate Used : US$1 = HK$7.80 MOP8.04 RMB7.02 RMB7.02 RMB7.02
GUANGZHOU/SHENZHEN
9
1ST QUARTER 2008
BUILDING TYPE
DOMESTIC
Average standard apartments, high rise ....
Luxury apartments, high rise ....................
Terraced houses .......................................
Luxury houses ..........................................
OFFICE / SHOPPING CENTRE
Average standard offices, high rise .........
Prestige offices, high rise .........................
Average standard shopping centres ........
Prestige shopping centres .......................
INDUSTRIAL
Light duty flatted factories, high rise,7.5kpa (150 lb.) loading ...........................
Heavy duty flatted factories and warehouses,high rise, 15kpa (300lb.) loading ...................
Single storey conventional factorywith structural steel roof ...........................
HOTEL
Resort hotels, inclusive of F.F.&E. ...........
3-Star hotels, ditto ....................................
5-Star hotels, ditto ....................................
OTHERS
Carparks, above ground ..........................
(USD/m2 CFA)
REGION
1,385 1,482 440 767 570 780 750
2,840 1,720 970 1,125 755 1,000 960
2,095 1,890 310 559 N/A 465 560
2,555 2,260 910 933 445 515 1,090
1,740 1,318 720 703 550 890 790
2,165 1,700 1,070 954 835 1,160 980
1,630 1,400 760 784 465 865 550
2,020 1,940 940 872 515 1,120 680
1,030 N/A 440 693 N/A 490 420
1,240 N/A 490 1,054 N/A N/A 460
890 893 460 639 255 440 395
2,270 2,400 1,280 2,045 1,160 1,390 1,290
2,340 2,275 1,480 1,321 950 1,710 1,225
3,230 2,950 2,150 1,891 1,360 2,060 1,585
745 560 280 313 255 560 385
Notes : The costs for the respective categories given above are averages based on fixed price competitive tenders. It must be understoodthat the actual cost of a building will depend upon the design and many other factors and may vary from the figure shown.
The costs per square metre are based on Construction Floor Areas measured to the outside face of the external walls / externalperimeter including lift shafts, stairwells, balconies, plant rooms, water tanks and the like.
All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and sitecondition. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
The standard for each category of building vary from country to country and do not necessarily follow those of Hong Kong.
Fluctuation in exchange rates may lead to changes in construction costs expressed in U.S. dollars.
APPROXIMATE BUILDING COSTS FOR MAJOR CITIES IN S.E. ASIA
SINGAPORE SEOUL BANGKOK JAKARTA BRUNEI MANILAKUALALUMPUR
Exchange Rate Used : US$1 = S$1.41 KRW940 RM3.20 BAHT31.30 IDR9,250 B$1.4086 PHP41.00
June 2008