CHINA AND

HONG KONG
QUARTERLY CONSTRUCTION
COST REVIEW

Arcadis Asia Limited

Arcadis Hong Kong Limited 2018 QUARTER
FOURTH
 CONTENTS
HONG KONG MARKET OVERVIEW............................................................................................ 3

MARKET ANALYSIS............................................................................................................................ 4

APPROXIMATE BUILDING COSTS - HONG KONG................................................................. 5

BUILDING & BUILDING SERVICES PRICE INDEX - MAINLAND CHINA ........................ 6

TENDER PRICE INDEX - HONG KONG....................................................................................... 7

MATERIALS - MAINLAND CHINA ................................................................................................. 8

LABOUR................................................................................................................................................. 9

GROSS VALUE OF CONSTRUCTION WORK PERFORMED - MAINLAND CHINA.......... 10

GROSS VALUE OF CONSTRUCTION WORK PERFORMED - HONG KONG................. 11

APPROXIMATE BUILDING COSTS FOR MAJOR CITIES - ASIA.......................................... 12 - 15

Statistical data is 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.

QUARTERLY CONSTRUCTION COST REVIEW

2 FOURTH QUARTER 2018
 CHINA AND HONG KONG
MARKET OVERVIEW

The recent announcement of the Greater Bay Area (GBA) blueprint set out clear objectives to create an innovation
and financial hub that will look to compete with the likes of Silicon Valley and Tokyo Bay Area. Importantly, Hong
Kong, Macau, Guangzhou and Shenzhen have been named as the four key cities that will act as the foundation for
regional development.
The blueprint offers a strong framework from which to build, but it’s secure the reliable movement of people, goods and services. However,
the announcement of specific policies that will ignite action and provide with this comes specific challenges around governance and how to
tangible projects for the region. The critical areas of focus include a need achieve collaboration between two Special Administrative Regions
to strengthen cooperation in innovation and technology, accelerate (SAR) and Mainland China.
infrastructure connectivity, improve internet infrastructure, strengthen
security of water resources and pursue low-carbon development The blueprint has outlined a strategy to focus on clusters to improve
models. its international competitiveness. This will be realized through a ports
program, a world-class airport cluster, a rapid transport network,
The long-term area of focus for the construction industry is going to be passenger and cargo transport services and connection to existing
the improvement of the region’s transport hubs. Mobility will underpin transport infrastructure.
the success for the GBA and will require major capital works projects to

MARKET MOVEMENT

ECONOMY SUPPLY & DEMAND

Indicator 2016 Q2 2017 Q2 2017 Q3 Indicator 2016 Q2 2017 Q2 2017 Q3

GDP Growth Q3/16 - Q3/17 Q2/17 - Q2/18 Q3/17 - Q3/18 Activity Level (Gross Q3/17 Q2/18 Q3/18
per annum (+) 3.6% (+) 3.5% (+) 2.9% output; new + A&A) HK$60.939 Bn HK$62.001 Bn HK$60.297 Bn

Inflation Rate (CPI) Dec 16 - 17 Sep 17 - 18 Dec 17 - 18

per annum (+) 1.7% (+) 2.7% (+) 2.5%

BASIC COSTS CONSTRUCTION COST TREND

Indicator 2016 Q2 2017 Q2 2017 Q3
Indicator 2016 Q2 2017 Q2 2017 Q3
Highways Apr - Oct 17 May - Jul 18 Aug - Oct 18
Material Index 781.8 845.7 863.1 Tender Price Index Q4/17 Q3/18 Q4/18
(Arcadis) 1946 1885 1868
Labour Sep - Nov 17 Jun - Aug 18 Sep - Nov 18
Wages Index 152.7 148.3 148.9

QUARTERLY CONSTRUCTION COST REVIEW

FOURTH QUARTER 2018 3
 1 MARKET ANALYSIS
CHINA
The Chinese government has a clear economic outline for growth in
2018/19 with a focus on creating openness for foreign investment,
improving the quality of GDP growth and to control its growing levels
of pollution. In response, China’s GDP increased by 6.6% Year-on-Year
(YoY) and 9.0% Quarter-on Quarter (QoQ) based on Q4 2018. The
rate of inflation was mild with the Composite Consumer Price Index
(CPI) increasing gradually from a low in early 2017 by 1.9% YoY based
on December 2018.
LOWERING THE RESERVE REQUIREMENT
RATIO
In the fourth quarter of 2018, the Central Bank of China lowered the
Reserve Requirement Ratio (RRR) by 1% for the fourth time in 2018.
This action, together with the continuous growth of new development
areas, has the potential to stabilize the rising cost of housing. Early
activity in 2019 has seen a further 1% reduction in RRR.
COST OF MATERIALS AND LABOUR
In 2018, construction wages increased by 4.4% YoY at the highest
rate of growth in the last three years. Basic construction product
costs fluctuated with rebar (-) 12%, steel (-) 6%, concrete (+) 11%
and cement (+) 5%, YoY. The price increase of cement and concrete
was due to changes in environmental protection policies, while the
decrease in rebar and steel were due to excess supply.
HONG KONG
The recent announcement of the Hong Kong Budget 2019 has built
on some consistent market themes such as productivity, technology
and public housing. Highlights include digitization of the works
supervision system to enhance the standard and efficiency in public
works monitoring and the implementation of Construction 2.0 – ‘an
expression of Industry changes required across three key pillars:
Innovation, Professionalism and Revitalization’.
There is also an outlined spending to help enhance the city’s liveability.
This includes an earmarked HK$6 billion for the enhancement of
waterfronts and an allocated HK$120 million to extend the public
charging network of electric vehicles at government car parks. It
also explores the feasibility of installing chargers in on-street parking
spaces and provides HK$1 billion for government departments to
install renewable energy facilities.
QUARTERLY GDP GROWTH UNDER 3%
Hong Kong’s economy showed continued GDP growth of 2.9% Year-
on-Year (YoY) based on Q3 2018. However, this is the first time in
seven consecutive quarters that GDP growth hasn’t exceeded 3%.
Inflation was mild with the Composite Consumer Price Index (CPI)
increasing gradually from the low in early 2017 by (+) 2.5% (YoY)
based on December 2018.
HIGH APPROVAL RATES FOR MAJOR
CAPITAL WORKS
The gross value of construction works performed decreased by
1.05% YoY based on Q3 2018. Several major civil projects reached
completion which included the Hong Kong-Zhuhai-Macau Bridge
and the West Kowloon Railway Station. This created the potential
to leave a shortfall in on-going capital works, but Hong Kong’s
Legislative Council has approved funding for major capital works in
2017/18, which showed a 50% increase from the previous year. Some
of these projects, such as the 10-year Hospital Development Plan,
will begin in 2019, sustaining commencement rates and keeping the
market stable.
COST OF MATERIALS AND LABOUR
Steel price remained at peak levels since gradually increasing from
the market low in early 2016. Other core materials also remained
steady throughout the year. Notably, the price of sand increased
by 134% since a market slump in September 2017. Construction
workers’ wages, including bar benders, electrical and mechanical
workers remained stable in this quarter. However, the labour index
has experienced a slight dip of 2.5% YoY, with bricklayers witnessing
the largest quarterly movement of (-) 2.3%.

QUARTERLY CONSTRUCTION COST REVIEW

4 FOURTH QUARTER 2018
 2 APPROXIMATE BUILDING COSTS
HONG KONG
Notes:
1. The costs for the respective categories given are
averages based on fixed price competitive tenders. It
must be understood that the actual cost of a build-
ing 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 perim-
eter 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.
*The above cost are at 4th Quarter 2018 levels.
BUILDING TYPE
DOMESTIC
Apartments, high rise, public authority
standard
Apartments, high rise, average standard
Apartments, high rise, high end
Terraced houses, average standard
Detached houses, high end
OFFICE / COMMERCIAL
Medium/high rise offices, average
standard
High rise offices, prestige quality
Out-of-town shopping centre, average
standard
Retail malls, high end
INDUSTRIAL
Owner operated factories, low rise, light
weight industry
HOTEL
Budget hotels - 3-star, mid market
Business hotels - 4/5-star
Luxury hotels - 5-star
OTHERS
Underground/basement car parks
(<3 levels)
Multi storey car parks, above ground
(<4 levels)
Schools (primary and secondary)
Students’ residences
Sports clubs, multi purpose sports/
leisure centres (dry sports)
General hospitals - public sector
HK$/m2 CFA OUTLINE SPECIFICATION
11,000 - 13,500 Apartment units with fit-out, based on Hong Kong Housing
Authority Non-standard Cruciform Block design
Apartment units with fit-out, including air-conditioning,
23,900 - 27,900 kitchen cabinets and home appliances, but excluding
decorative light fittings and loose furniture
Apartment units with good quality fit-out, including air-
31,400 - 36,700 conditioning, kitchen cabinets and home appliances, but
excluding decorative light fittings and loose furniture
Houses with fit-out, including air-conditioning, kitchen
32,300 - 38,000 cabinets and home appliances, but excluding decorative
light fittings, loose furniture, garden and parking
Houses with good quality fit-out, including air-conditioning,
48,000 up kitchen cabinets and home appliances, but excluding
decorative light fittings, loose furniture, garden and parking
23,400 - 27,400 RC structure, curtain wall/window wall, including public area
fit-out, tenant area with screeded floor, painted wall and ceiling
RC structure, curtain wall, including public area fit-out, tenant
28,400 - 33,300
area with raised floor/carpet, painted wall and false ceiling
23,200 - 27,700 Including public area fit-out and M&E, but excluding shop
fit-out
30,900 - 36,900
18,200 - 23,100 RC structure, including small office with simple fit-out and
M&E, but excluding a/c and heating
30,000 - 32,500 1) Interior decoration
2) Furniture (fixed and movable)
3) Special light fittings (chandeliers, etc.)
31,400 - 36,900 4) Operating Supplies and Equipment (OS&E) excluded
36,900 - 42,700
25,000 - 30,000 RC structure
15,000 -17,800 RC structure, natural ventilation, no facade enclosure
19,700 - 21,200 Public authority standard, including fit-out, no a/c, complete
with basic external works but excluding educational
equipment
22,900 - 25,900 Including fit-out, loose furniture and a/c
29,900 - 34,800 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)
38,700 - 43,600 Excluding medical and operating equipment
QUARTERLY CONSTRUCTION COST REVIEW
FOURTH QUARTER 2018 5
 Building3
BUILDING & BUILDING SERVICES
PRICE INDEX
& Building
3 – Mainland China
Services Price Index
MAINLAND CHINA
Index
200

190

180

170

160

150

140

130 Index (Projected by Arcadis)

(4th Quarter 2002 = 100)
120

110

100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

BUILDING & BUILDING SERVICES 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 2015 2016 2017 2018 2015 2016 2017 2018
1st Quarter 98.6 96.4 106.4 108.4 150.3 144.9 154.1 167.1
2nd Quarter 98.2 99.1 106.5 106.9 153.3 152.0 161.8 173.0
3rd Quarter 96.3 100.0 109.0 107.2 154.6 154.6 168.5 180.7
4th Quarter 95.9 102.2
95.91 110.1
02.2 106.4 156.6 160.0 176.2 187.5
Source : National Bureau of Statistics (NBS) of China

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 the 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.

QUARTERLY CONSTRUCTION COST REVIEW

6 FOURTH QUARTER 2018
 2,200 300

2,000 280
1,800 260

4 TENDER PRICE INDEX

1,600
240
1,400
HONG KONG 220
4 Tender Price Index - Hong Kong
1,200
Index 200
Index
1,000 2,200 300

Notes: 2,000
180
280
800
1. [*] denotes forecast figures. 1,800 260
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general
builder’s works only. Special works and Mechanical and Electrical 1,600 160
240
600
Services would have to be considered separately.
1,400
3. All indices were published quarterly. For reference purpose, only 220
indices from 1st quarter of 1998 and onwards are given in detail,
400
whereas indices between year 1970 to1997 are shown with their 4th 1,200 140
200
Quarter figures.
1,000

200 800 120

180

160
600
0 400
100
140
'70 '78 '86 '94 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19
Year 200 120

0 100
ArchSD BWTPI Year
'70 '78 '86 '94 Arcadis
'99 '01 '03TPI
'05 '07 '09 '11 '13 '15 '17 '19

Arcadis TPI (as at the 4th Quarter) ArchSD BWTPI ArchSD BWTPI Arcadis (as atTPIthe 4th Quarter)
Arcadis TPI (as at the 4th Quarter) ArchSD BWTPI (as at the 4th Quarter)
Arcadis TPI (Forecast) Arcadis TPI (Forecast)ArchSD BSTPI (as ArchSDatBSTPI
the (as
4th Quarter)
at the 4th Quarter)

ArchSD BSTPI ArchSD BSTPI

Quarter / Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ArchSD BWTPI (Base = 100, at Year 1970)
Quarter / Year 2009 2010 2011 2012
Q1 107420131134 2014
1273 1414 2015
1516 20161732
1621 2017
1775 1779 2018
1755
Q2 983 1161 1320 1438 1532 1648 1761 1776 1776 1727
Q3 1111 1249 1369 1467 1559 1679 1777 1783 1773 1708
ArchSD BWTPI (Base = 100, at Year 1970)
Q4 1107 1266 1408 1496 1590 1703 1775 1781 1768

Q1 1074 1134 1273 1414 1516 1621 1732 1775

ArchSD BSTPI (Base = 100, at Year 1989) 1779 1755
Q1 128 130 149 149 193 211 (N/A) 257 208 (N/A)
Q2 983 1161 1320 1438
Q2 1341532135 1648
162 200 1761 230 1781776189 1776
236 210 1727
258
Q3 129 143 187 281 215 (N/A) 225 257 (N/A) 247
Q3 1111 1249 1369 1467
Q4 133
1559148 1679
175 203
1777219
1783196
(N/A)
1773
249 287
1708
Q4 1107 1266 1408 1496 1590 1703TPI (Base 1775
Arcadis 1781
= 100, at Year 1970) 1768
Q1 1245 1297 1385 1511 1688 1789 1946 1992 1975 1920
ArchSD BSTPIQ2(Base =1242
100, 1315
at Year 1989)
1425 1552 1713 1808 1958 1992 1968 1910
Q3 1253 1342 1452 1595 1747 1857 1963 1993 1957 1885
Q1 128 130 149 Q4 149 193 1367 1491
1273 211 1632 (N/A) 1786 1903 257 1984 208
1986 1946 (N/A)1868

Q2 134 135 162 200

Source : Competitive 230
tenders received by 178
Arcadis, Building 189
Works Tender Price 236
Index (BWTPI) 210 258
and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR
Q3 129 143 187 281 215 (N/A) 225 257 (N/A) 247
Q4 133 148 175 203
Note : 1. [*] denotes forecast219
figures (N/A) 196 249 287
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder's works only.
Arcadis TPI Special
(Base = and
works 100, at Year
Mechanical 1970)Services would have to be considered separately.
and Electrical

Q1 1245 1297 1385 1511 1688 1789 1946 1992 1975 1920
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 year 1970 to 1997 are shown with their 4th Quarter figures.
Q2 1242 1315 1425 1552 1713 1808 1958 1992 1968 1910
Q3 1253 1342 1452 1595 1747 1857 1963 1993
QUARTERLY 1957
CONSTRUCTION COST REVIEW 1885
7
FOURTH QUARTER 2018
Q4 1273 1367 1491 1632 1786 1903 1984 1986 1946 1868
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

Note: Competitive
Source : 1. [*] denotes forecast
tenders received figures
by Arcadis, Building Works Tender Price Index (BWTPI)
and Building Services Tender Price Index (BSTPI) of Architectural Services Department (ArchSD) of HKSAR
2. Both BWTPI (ArchSD) and Arcadis TPI measure the trend of general builder's works only.
Note : 1. [*] denotes forecast figures

Special works and Mechanical and Electrical Services would have to be considered separately.
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
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 year 1970 to 1997 are shown with their 4th Quarter figures.
are given in detail, whereas indices between year 1970 to 1997 are shown with their 4th Quarter figures.

QUARTERLY CONSTRUCTION COST REVIEW

FOURTH QUARTER 2018 7
QUARTERLY CONSTRUCTION COST REVIEW
FOURTH QUARTER 2018 7
 Yellow coloured are updated figures and charts

5
MATERIALS
Yellow coloured are updated figures and charts
5 Materials
MAINLAND CHINA
Mainland5 China
Materials
Mainland China % Change
20%
% Change
CONSTRUCTION MATERIAL PRICES 15%
20%
YEAR-ON-YEAR CHANGE
15%
Quarter / Year 2016 2017 2018 10%
10%
1st Quarter (-) 7.2% (+) 8.5% (+) 11.6%
5%
2nd Quarter (-) 3.0% (+) 8.7% (+) 8.7% 5%

3rd Quarter (-) 1.4% (+) 12.4% (+) 9.1% 0% 0%

4th Quarter (+) 1.9% (+) 13.9% (+) 8.0%
-5% -5%
Source : National Bureau of Statistics of China Construction Material Prices
Construction Year-on-Year
-10% Material Prices
-10% Change
Year-on-Year Change
-15%
-15% 2010 2011 2012 2013 2014 2015 2016 2017 2018
2010 2011 2012 2013 2014 2015 2016 2017 2018
Basic Construction Materials
Basic Construction Materials
Basic Construction Materials US$/Tonne RMB/m3
12,000 700
US$/Tonne RMB/m3 650
10,000
12,000 700 600
8,000 650 550
10,000
6,000 600 500
8,000 450
4,000 550
Copper, CIF European port 400
6,000 2,000 500
350 Ready Mix Concrete, 40 MPa
450 300
4,000 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Copper, CIF European port 400
Shanghai Construction & Construction Material
2,000 Source : London Metal Exchange
350 Industry Ready MixDepartment
Administration Concrete, 40 MPa

0 300
2009 2010 2011 2012 RMB/Tonne
2013 2014 2015 2016 2017 2018 2009 2010RMB/Tonne
2011 2012 2013 2014 2015 2016 2017 2018
6,000 700
Shanghai Construction & Construction Material
Source : London Metal Exchange
Industry Administration Department
5,000 600

4,000
RMB/Tonne RMB/Tonne 500
6,000 700
3,000 400

5,000 2,000 600 300

Steel Reinforcement, Grade III
Portland Cement, 42.5 MPa
4,000 1,000 500 200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shanghai Construction & Construction Material Shanghai Construction & Construction Material
3,000 Industry Administration Department 400 Industry Administration Department

2,000 300
Steel Reinforcement, Grade III QUARTERLY
Portland CONSTRUCTION
Cement, 42.5 MPaCOST REVIEW
8
1,000 200 FOURTH QUARTER 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shanghai Construction & Construction Material Shanghai Construction & Construction Material
Industry Administration Department Industry Administration Department

QUARTERLY CONSTRUCTION COST REVIEW

FOURTH QUARTER 2018
8

QUARTERLY CONSTRUCTION COST REVIEW

8 FOURTH QUARTER 2018
 6
Yellow coloured are updated figures and charts
LABOUR
6 Labour
Yellow coloured are updated figures and charts

Mainland ChinaMainland China

6 Labour % Change
Yellow
Construction Labour Prices coloured
20% are updated figures and charts
Mainland China
Year-on-Year Change Construction Labour Prices
CONSTRUCTION LABOUR PRICES Year-on-Year Change
Quarter
YEAR-ON-YEAR
Construction 6
CHANGE Labour
/ Year 2016
Labour Prices
1st Quarter (+)3.7%
2017 % Change
(+)3.6%
2018
20% (+)3.5%
15%

Year-on-Year
2nd QuarterChange
(+)3.6% (+)3.5% Construction Labour Prices
Quarter / Year
Quarter / Year
2016
2016
Mainland
2017
2017
China(+)4.6%
2018 10%
Year-on-Year Change
3rd Quarter (+)3.3% 2018
(+)4.0%15% (+)4.8%
(+)3.7% (+)3.6% (+)3.5% % Change
1st Quarter1st Quarter4th
(+) 3.7%
Quarter (+) 3.6% (+) 3.5%
(+)3.4%Construction
(+)4.5% Labour(+)4.8%
Prices 20%
2nd Quarter (+)3.6% (+)3.5% (+)4.6% 5%
2nd Quarter Source(+): 3.6% (+) 3.5%
National Bureau Year-on-Year
ChinaChange
of 10%
(+) 4.6%
of Statistics Construction Labour Prices
3rd Quarter (+)3.3% (+)4.0% (+)4.8%
Quarter / Year 2016 2017 2018 15% Year-on-Year Change
3rd Quarter4th Quarter (+) 3.3%
(+)3.4%
(+) 4.0%
(+)4.5%
(+) 4.8%
(+)4.8% (+)3.7% (+)3.6% 0%
1st Quarter (+)3.5%
5%
4th Quarte r : National Bureau
Source (+) 3.4% 2nd
(+) of
of Statistics 4.5% (+)3.6%
Quarter(+) 4.8%
China (+)3.5% (+)4.6%2010 2011 2012 2013 2014 2015 2016 20172018
10%
3rd Quarter (+)3.3% (+)4.0% (+)4.8%
Source : National Bureau of Statistics of China
4th Quarter 0%
(+)3.4% (+)4.5% -5% (+)4.8%
2010 2011 5% 2014 2015 2016 20172018
2012 2013
Source : National Bureau of Statistics of China

-5% 0%

Hong Kong SAR

2010 2011 2012 2013 2014 2015 2016 20172018

Hong Kong -5%

%
Hong Kong SAR Construction Workers in HKSAR HK$
30 $20,000
Median Monthly Earning (HK$)
% Construction
Hong Kong Workers
SAR in HKSAR HK$
30 $20,000 $18,000
25
Median MonthlyUnemployment
Earning (HK$) Rate (%) - All
Construction%Trades Construction Workers in HKSAR HK$
30
Unemployment Unemployment Rate Median
(%) - Monthly Earning (HK$)
$18,000 $16,000
$20,000
25 Rate (%) - All
20
Construction Foundation
Trades & Superstructure $18,000
Rate (%)25
Unemployment Unemployment
-
Unemployment Rate (%) - All $16,000 $14,000
Rate Construction
(%) - Trades
20 Foundation & Superstructure
Decoration & Maintenance $16,000
15
Unemployment Rate (%)20
-
Unemployment Rate (%) -
Foundation & Superstructure
$14,000 $12,000
Decoration & Maintenance Unemployment Rate (%) - $14,000
15 Decoration & Maintenance $12,000
15 $10,000
$12,000
10
$10,000
10
10
$8,000
$10,000
5 $8,000 $8,000
5 $6,000
5
$6,000 $6,000
0 $4,000
0 0 $4,000 $4,000
1993 1995 1997 1999
1993 1995
2001 1999
1997
2003 2005 2007 2009 2011 2013 2015 2017
1993 1995 1997
Year 1999 2001 2003 2005 2007 2001
200920032011
2005
2013 2007 2009 2011 2013 2015
2015 2017 2017
Year
Year
Source : Census & Statistics Department,
Source : Census Hong
& Statistics Kong SAR
Department, Hong Kong SAR
Source : Census & Statistics Department, Hong Kong SAR

No. of Workers No. of Workers Employed

Age Employed
Age 15 - 24
Age GroupAge Group Age Group No. of Workers No.Employed
Group of Workers EmployedIndustry
by Construction Age 15 - 24
Age 15 - 24
7.3%
by Construction
by ConstructionIndustry
Age 15by- 24Construction
Industry Industry 7.3%
34,506 7.3% 7.3%
Age 25 - 39
Age 15 - 24Age 15 - 24Age 15 -34,506
24 34,506 34,506
Age 25 - 397.3% 7.3% 7.3% 26.1%
123,095 26.1%
Age 25 - 39
Age ≥ 40 123,095 313,379 Age 25 - 39
Age 25 - 39Age 25 - 39Age 25 123,095
- 39 123,095 26.1%
26.1% 26.1% 66.5% 26.1% 26.1%
Total (as at June 2018) : 470,980 100.0%
Age ≥ 40 Age ≥ 40 313,379 313,379
66.5% 66.5% Age ≥ 40
313,379 66.5% 66.5%
Total (as atTotal
June(as
2018) :
at June 470,980
2018) : 100.0%
470,980 100.0%Age ≥ 40
Total (as at June 2018) 470,980 100.0% 66.5%
Age ≥ 40
Source : Construction Industry Council 66.5%
Source : Construction Industry Council
Source : Construction Industry Council Age Distribution of Workers
Source : Construction Industry Council Age Distribution of Workers
QUARTERLY CONSTRUCTION COST REVIEW
Age Distribution of Workers
FORTH QUARTER 2018
9
Age Distribution of Workers
QUARTERLY CONSTRUCTION COST REVIEW
QUARTERLY CONSTRUCTION
FORTH QUARTER 2018
9COST REVIEW
FORTHCONSTRUCTION
QUARTERLY QUARTER 2018
COST REVIEW
9
FOURTH QUARTER 2018 9
 Gross Value of Construction Work Performed
7 – Mainland China

7
(RMB¥Billion)
9,000

8,000
GROSS VALUE OF CONSTRUCTION
WORK PERFORMED
MAINLAND CHINA
Building Building Services Others

Gross Value of Construction Work Performed

7,000 7 – Mainland China
(RMB¥Billion)
6,000 9,000
Notes:
1. Value of “Construction” includes builder’s Building Building Services Others
8,000
works and building services systems.
5,000
2. Value of “Installation” is for assembling
7,000
and installation of equipment for
industrial production, power, load-lifting,
4,000
transportation, medical and laboratory 6,000
uses, but excludes supply costs of such
equipment.
5,000
3. Value of 3,000
“Others” is generally maintenance
and other miscellaneous construction
4,000
activities.

2,000 3,000

2,000
1,000
1,000

0 0
2004 2005 2006 2007 20082004 2009
2005 20102007
2006 2011
2008 20122010 2013
2009 2011 201420132015
2012 2014 2016 20162017
2015 2017 2018
2018
Year
Year
Value Performed (RMB¥ Billion)
Quarter
Value2010
2009 Performed
2011 (RMB¥
2012 Billion)
2013 2014 2015 2016 2017 2018
Quarter A. Building
2009 2010 2011
1st Quarter 2012
882 2013
1,118 1,422 2014 1,994 2015
1,661 2,311 2016
2,544 2,712 2017
3,003 2018
3,382
2nd Quarter 1,537
A. Building
1,906 2,419 2,826 3,355 3,866 3,899 4,158 4,609 4,985
3rd Quarter 1,673 2,082 2,634 3,111 3,687 4,113 4,068 4,322 4,742 5,106
1st Quarter 882 1,118 1,422
4th Quarter 1,6613,318
2,572 1,994
4,016 2,311
4,427 5,078 2,544
5,425 2,712
5,517 5,9943,003
6,562 3,382
7,286
2nd Quarter 1,537 1,906 2,419
Year Total : 2,8268,424
6,664 3,355
10,490 3,866 14,115 3,899
12,025 15,714 4,158 17,1864,609
16,028 18,916 4,985
20,759
B. Building Services
3rd Quarter 1,673 2,082 2,634
1st Quarter 100
3,111115
3,687
141
4,113
165 200
4,068
230
4,322
255 277
4,742
303
5,106
358
4th Quarter 2,572 3,318 4,016
2nd Quarter 4,427 183
153 5,078
214 5,425
251 300 5,517
333 5,994
331 366 6,562
405 7,286
438
3rd Quarter 173 196 224 271 322 346 363 374 437 459
Year Total : 6,664 8,424 10,490
4th Quarter
12,025333
277
14,115
378
15,714
413 514
16,028
517
17,186
548 561
18,916
646
20,759
708
Year Total : B.702Building
827 Services
957 1,100 1,336 1,426 1,498 1,578 1,791 1,963
C. Others
1st Quarter 100 115 141
1st Quarter 30
16538
200
47 57
230 69
25583 91
277 96
303113 358
129
2nd Quarter 153 183 214
2nd Quarter 48 251 60 300
69 86333 100 331118 366
117 138 405154 438
187
3rd Quarter 56
3rd Quarter 173 196 224 271 66 77
322 97
346 123
363126 126
374 137
437160 189
459
4th Quarter 86 107 133 166 189 205 216 222 262 282
4th Quarter 277 333 378
Year Total : 220
413 270
514
326
517
406 481
548531 561
550 593
646689 708
787
Year Total : 702 827 957 1,100 1,336gross value
Annual 1,426performed
1,498 1,578
(A + B + C) 1,791 1,963
Total : 7,586 C. Others
9,521 11,773 13,530 15,931 17,671 18,076 19,357 21,396 23,509

1st Quarter 30 38 Source : 47 National Bureau of Statistics of China

57 69 83 91 96 113 129
Note : 1. Value of "Construction" includes builder’s works and building services systems.
2nd Quarter 48 60 69 2. Value86 of "Installation"100 118
is for assembling 117
and installation of equipment138 154 power,187
for industrial production,
load-lifting, transportation, medical and laboratory uses, but excludes supply costs of such equipment.
3rd Quarter 56 66 77 97 123 126 126 137 160 189
3. Value of "Others" is generally maintenance and other miscellaneous construction activities.
4th Quarter 86 107 133 166 189 205 QUARTERLY 216 CONSTRUCTION
222 COST262 REVIEW 282
FOURTH QUARTER 2018
10
Year Total : 220 270 326 406 481 531 550 593 689 787

Annual gross value performed (A + B + C)

Total : 7,586 9,521 11,773 13,530 15,931 17,671 18,076 19,357 21,396 23,509
Source : National Bureau of Statistics of China
Source : National Bureau of Statistics of China
Note : 1. Value of "Construction" includes builder’s works and building services systems.
Note : 1. Value of “Construction” includes builder’s works and building services systems.
2. isValue
2. Value of “Installation” of "Installation"
for assembling and installationis for assembling
of equipment and
for industrial installation
production, of equipment
power, load-lifting, for industrial
transportation, production,
medical and laboratory uses, power,
but excludes supply costs of such equipment.
load-lifting,
3. Value of “Others” is generally transportation,
maintenance medical
and other miscellaneous and laboratory
construction activities. uses, but excludes supply costs of such equipment.
3. Value of "Others" is generally maintenance and other miscellaneous construction activities.
QUARTERLY CONSTRUCTION COST REVIEW
QUARTERLY CONSTRUCTION COST REVIEW FOURTH QUARTER 2018
10
10 FOURTH QUARTER 2018
8
8 HONG
GROSS VALUE OF CONSTRUCTION
WORK
KONG
– Gross
Hong Kong
PERFORMED
Gross Value of Construction Work Performed
Value of Construction Work Performed
8 – Hong Kong
(HK$Million)
70,000
(HK$Million)
70,000 Private sector sites Public sector sites Locations other than sites
60,000 Private sector sites Public sector sites Locations other than sites
60,000

50,000
50,000

40,000
40,000

30,000
30,000

20,000
20,000

10,000
10,000

0 0
19971997 1999
1999 2001
2001 2003
2003 2005
2005 2007
2007 2009
2009 2011
2011 20132013 2015 2015 2017 2017
YearYear
Value Performed (HK$ Million)
Quarter Value Performed (HK$ Million)
Quarter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
A. Private sector sites
1st Quarter 8,600 6,349 7,529 A. Private
11,209 sector
11,675 sites
13,395 15,528 17,652 18,150 19,918
1st Quarter
2nd Quarter 8,600
9,055 6,349
9,276 7,529
8,458 11,209
12,260 11,675
12,176 13,395
12,507 15,528
17,284 17,652
19,530 18,150
19,070 19,92519,918
2nd Quarter
3rd Quarter 9,055
8,408 9,276
7,360 8,458
9,192 12,260
12,481 12,176
11,848 12,507
12,792 17,284 19,252
16,849 19,53017,912
19,070
17,321*19,925
3rd Quarter
4th Quarter 8,408
7,543 7,360
7,322 9,192
10,102 12,481
13,411 11,848
13,781 12,792
15,259 16,849 21,231
18,119 19,25219,813
17,912 17,321*
4th Quarter
Year Total : 7,543
33,606 7,322
30,307 10,102
35,281 13,411
49,361 13,781
49,480 15,259
53,953 18,119 77,666
67,781 21,23174,945
19,813
57,164*
Year Total : 33,606 30,307 35,281 B. 49,361
Public sector sites 53,953
49,480 67,781 77,666 74,945 57,164*
1st Quarter 3,967 6,511 9,880 B. 13,168 16,829 sites
Public sector 18,258 18,531 19,414 20,639 21,533
2nd Quarter
1st Quarter 4,652
3,967 6,937
6,511 9,263
9,880 12,023
13,168 14,690
16,829 15,397
18,258 18,964
18,531 17,780
19,41422,827 20,00221,533
20,639
3rd Quarter 4,428 8,651 10,814 12,137 13,792
2nd Quarter 4,652 6,937 9,263 12,023 14,690 16,253
15,397 18,163
18,964 21,878
17,78020,934 17,010*
22,827 20,002
4th Quarter 5,605 9,117 12,113 17,332 16,976 18,915 21,585 22,295 23,455
3rd Quarter 4,428 8,651 10,814 12,137 13,792 16,253 18,163 21,878 20,934 17,010*
Year Total : 18,652 31,216 42,070 54,660 62,287 68,823 77,242 81,367 87,855 58,545*
4th Quarter 5,605 9,117 12,113 17,332 16,976 18,915 21,585 22,295 23,455
C. Location other than sites
Year Total : 18,652 31,216 42,070 54,660 62,287 68,823 77,242 81,367 87,855 58,545*
1st Quarter 11,750 11,926 12,172 13,347 15,140 17,90919,549 18,809 19,963 22,871
2nd Quarter 12,415 12,109 C.
11,620 Location
13,245 other than20,327
15,914 sites 18,744 18,041 20,657 22,073
1st Quarter
3rd Quarter 11,750
11,969 11,926
12,620 12,172
12,953 13,347
14,358 15,140
16,038 17,909
18,636 19,549
19,520 18,809
19,274 19,963
22,093 22,871
25,965*
2nd Quarter
4th Quarter 12,415
12,552 12,109
13,097 11,620
14,439 13,245
16,479 15,914 20,088
17,716 20,327 21,111
18,744 21,333
18,04124,406
20,657 22,073
3rd Quarter
Year Total :11,969
48,686 12,620
49,752 12,953
51,184 14,358
57,429 16,038 76,961
64,808 18,636 78,924
19,520 77,458
19,27487,119
22,093 25,965*
70,909*
4th Quarter 12,552 13,097 14,439 16,479 17,716 20,088 21,111 21,333 24,406
Annual gross value performed (A + B + C)
Year Total : 48,686 49,752 51,184 57,429 64,808 76,961 78,924 77,458 87,119 70,909*
Total : 100,944 111,275 128,535 161,450 176,575 199,737 223,946 236,491 249,919 186,618*
* Provisional Annual gross value performed (A + B + C)
*Provisional
Source :Total
Census: and
100,944 111,275 Hong
Statistics Department, 128,535
Kong SAR 161,450 176,575 199,737 223,946 236,491 249,919 186,618*
* Provisional
Source : Census and Statistics Department, Hong Kong SAR

QUARTERLY CONSTRUCTIONQUARTERLY
COST REVIEW
CONSTRUCTION COST REVIEW
Source : Census and Statistics Department, Hong Kong SAR FOURTHFOURTH QUARTER
QUARTER 2018 11
2018 11
QUARTERLY CONSTRUCTION COST REVIEW
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Shanghai Beijing Guangzhou/Shenzhen Chongqing/Chengdu

BUILDING TYPE
RMB / m2 CFA
DOMESTIC
Apartments, high rise, average standard
- Shell and core 2,709 - 3,124 2,687 - 3,099 2,501 - 2,772 2,481 - 2,913
- Full fit 4,636 - 5,136 4,254 - 4,671 3,706 - 4,095 3,831 - 4,587
Apartments, high rise, high end
- Shell and core 3,308 - 3,604 3,170 - 4,599 2,616 - 3,450 3,063 - 4,062
- Full fit 10,785 - 11,777 10,299 - 11,729 6,066- 6,649 6,295 - 7,974
Terraced houses, average standard
- Shell and core 3,095 - 3,310 3,102 - 3,623 2,811 - 3,095 3,088 - 3,755
- Full fit N/A 6,085 - 6,597 N/A N/A
Detached houses, high end
- Shell and core 4,622 - 5,136 4,671 - 5,198 3,838 - 4,226 4,102 - 4,733
- Full fit N/A 11,694 - 12,205 N/A N/A
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 6,024 - 8,023 5,948 - 8,009 5,392 - 5,968 6,121 - 7,114
High rise offices, prestige quality 8,037 - 10,028 8,009 - 13,151 7,856 - 9,445 7,787 - 10,549
Out-of-town shopping centre,
average standard N/A 4,532 - 6,059 5,198 - 5,705 4,900 - 6,329
Retail malls, high end 8,522 - 11,000 8,196 - 11,284 7,551 - 10,556 7,405 - 10,445
INDUSTRIAL
Industrial units, shell only.
(Conventional single storey framed unit) 1,943 - 2,373 1,874 - 2,283 3,449 - 3,796 2,956 - 3,761
Owner operated factories, low rise, light
weight industry 2,998 - 3,748 3,623 - 4,150 N/A N/A
HOTEL
Budget hotels - 3-star, mid market 6,607 - 8,113 6,704 - 8,266 6,836 - 7,523 6,649 - 8,252
Business hotels - 4/5-star 10,799 - 14,713 11,208 - 14,796 11,048 - 15,775 12,124 - 15,185
Luxury hotels - 5-star 14,692 - 17,614 14,276 - 18,363 15,025 - 16,559 14,983 - 17,988
OTHERS
Underground/basement car parks 5,149 - 7,169 5,177 - 5,691 3,560 - 5,691 2,866- 4,088
(<3 levels)
Multi storey car parks, above ground 2,651 - 3,692 3,116 - 3,151 2,547 - 2,804 2,249 - 2,811
(<4 levels)
3,664 - 4,691 3,609 - 4,657 2,825 - 3,109 3,040- 3,380
Schools (primary and secondary)
Students’ residences 2,616 - 3,657 2,554 - 3,609 1,832 - 2,061 N/A
Sports clubs, multi purpose sports/
leisure centres (dry sports) 6,628 - 8,134 6,177 - 6,225 5,233- 5,774 N/A
General hospitals - public sector 9,841 - 12,763 8,120 - 10,167 N/A N/A
* The above costs are at 4th Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

12 FOURTH QUARTER 2018
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Hong Kong Macau Singapore Kuala Lumpur

BUILDING TYPE
USD / m2 CFA (See also exchange rates per U.S. dollar below)
DOMESTIC HK$ 7.82 MOP 8.07 S$1.38 RM 4.18
Apartments, high rise, average standard
- Shell and core N/A 1,770 - 2,623 N/A N/A
- Full fit 3,060 - 3,570 2,279 -2,788 1,305 - 1,485 345 - 580$
Apartments, high rise, high end
- Shell and core N/A 2,623 - 3,934 N/A N/A
- Full fit 4,020 - 4,690 3,183 - 4,864 2,030 - 3,045 710 -1,120
Terraced houses, average standard
- Shell and core N/A 3,107 -3,858 N/A N/A
- Full fit 4,130 - 4,860 3,884 - 4,635 1,705 - 1,920 220 - 345$$
Detached houses, high end
N/A 3,756 - 5,411 N/A N/A
- Shell and core
- Full fit 6,140 up 4,737 - 6,163 2,175 - 2,900 740 - 980
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 2,990 - 3,500 2,623 - 3,387 1,705 - 1,920@ 575 - 745$$$
High rise offices, prestige quality
3,630 - 4,260 3,387 - 3,705 1,920 - 2,100@ 865 - 1,255$$$
Out-of-town shopping centre,
average standard 2,970 - 3,540 2,470 - 3,705 1,920 - 2,030 550 - 715
Retail malls, high end 3,950 - 4,720 3,884 - 4,686 2,030 - 2,245 680 - 1,000
INDUSTRIAL
Industrial units, shell only.
(Conventional single storey framed unit) N/A N/A 725 - 930 320 - 430
Owner operated factories, low rise, light
weight industry 2,330 - 2,950 N/A N/A 430 - 520
HOTEL
Budget hotels - 3-star, mid market 3,840 - 4,160 3,451 - 3,909 2,140 - 2,355 1,020 - 1,395
Business hotels - 4/5-star 4,020 - 4,720 4,686 - 5,602 2,755 - 3,115 1,720 - 2,175
Luxury hotels - 5-star 4,720 - 5,460 5,602 - 6,621 2,775 - 3,115 1,940 - 2,435
OTHERS
Underground/basement car parks 3,200 - 3,840 2,050 - 3,005 930 - 1,255 310 - 530
(<3 levels)
Multi storey car parks, above ground 1,920 - 2,280 1,133 - 1,490 640 - 930@@ 220 - 345
(<4 levels)
2,520 - 2,710** 2,266 - 2,623 N/A 250 - 305$$$$
Schools (primary and secondary)
Students’ residences 2,930 - 3,310 1,795 - 2,088 1,560 - 1,705 295 - 360$$$$$
Sports clubs, multi purpose sports/
leisure centres (dry sports) 3,820 - 4,450 N/A 1,955 - 2,100 595 - 730
General hospitals - public sector 4,950 - 5,580 N/A 2,775 - 2,900 855 - 1,155

* The above costs are at 4th Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

FOURTH QUARTER 2018 13
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA

Bangkok Jakarta Manila

BUILDING TYPE
USD / m2 CFA (See also exchange rates per U.S. dollar below)
DOMESTIC BAHT 32.73 IDR 15180.00 PHP 52.88
Apartments, high rise, average standard
- Shell and core 534 - 687 N/A N/A
- Full fit 703 - 871 722 - 817 937 - 1,135
Apartments, high rise, high end
- Shell and core 626 - 809 N/A N/A
- Full fit 978 - 1,207 996 - 1,124 1,265 - 2,107
Terraced houses, average standard
- Shell and core 305 - 397 N/A N/A
- Full fit 458 - 565 383 - 498 762 - 917
Detached houses, high end
534 - 763 N/A N/A
- Shell and core
- Full fit 794 - 962 1,042 - 1,165 1,631 - 2,724
OFFICE / COMMERCIAL
Medium/high rise offices, average standard 642 - 794# 712 - 789 933 - 1,076
High rise offices, prestige quality
871 - 1,176## 1,050 - 1,174 1,264 - 1,390
Out-of-town shopping centre,
average standard 626 - 810 611 - 675 762 - 935
Retail malls, high end 840 - 886 675 - 730 1,093 - 1,508
INDUSTRIAL
Industrial units, shell only.
(Conventional single storey framed unit) 489 - 611 327 - 356 485 - 538
Owner operated factories, low rise, light
weight industry N/A 355 - 392 685 - 789
HOTEL
Budget hotels - 3-star, mid market 1,146 - 1,268 1,237 - 1,461 1,195 - 1,312
Business hotels - 4/5-star 1,466 - 1,680 1,691 - 1,827 1,347 - 1,607
Luxury hotels - 5-star 1,711 - 1,986 1,801 - 2,030 1,851 - 2,524
OTHERS
Underground/basement car parks 550 - 733 505 - 619 494 - 610
(<3 levels)
Multi storey car parks, above ground 183 - 299 327 - 356 475 - 661
(<4 levels)
N/A N/A 701 - 952
Schools (primary and secondary)
Students’ residences N/A N/A 742 - 937
Sports clubs, multi purpose sports/
N/A 1,095 - 1,640 1,186 - 1,699
leisure centres (dry sports)
General hospitals - public sector N/A N/A 1,287 - 1,523

* The above costs are at 4th Quarter 2018 levels.

QUARTERLY CONSTRUCTION COST REVIEW

14 FOURTH QUARTER 2018
 9 APPROXIMATE BUILDING COSTS
FOR MAJOR CITIES
ASIA
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 fit-
tings 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
High rise offices, prestige quality floor/ carpet, painted wall and false ceiling
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 storey framed unit) RC structure with steel roof and M&E to main distribution, but excluding a/c,
heating and lighting
Owner operated factories, low rise, light weight industry 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 1) Interior decoration
Business hotels - 4/5-star 2) Furniture (fixed and movable)
3) Special light fittings (chandeliers, etc.)
Luxury hotels - 5-star 4) Operating Supplies and Equipment (OS&E) excluded
OTHERS
Underground/basement car parks (<3 levels) RC structure
Multi storey car parks, above ground (<4 levels) RC structure, natural ventilation, 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 centres (dry sports) Dry sports (no swimming pool) and are for ‘leisure centre’ type schemes includ-
ing 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: ** Public authority standard, no a/c and complete with basic external works Singapore: @ Excluding carpet @@ Open
on all sides with parapet
Kuala Lumpur $ 6-12 units per floor, 46m2 - 83m2 per unit; excluding air-conditioning $$ Excluding air-conditioning, Kitchen cabinets
and home appliances $$$Exclude Tenant fit-out $$$$ Standard government provisions $$$$$ University standard 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

QUARTERLY CONSTRUCTION COST REVIEW

FOURTH QUARTER 2018 15
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Room 3409 - 3410 Nanjing 210009 China
E: info-cn@arcadis.com
International Trade Centre T: (86 25) 5791 1860
38 Qing Nian Road F: (86 25) 6698 1860 XI’AN
Central District E: info-cn@arcadis.com Room 1606 - 1607
Chongqing 400010, China CapitaMall Office Building
QINGDAO
T: (86 23) 8655 1333 64 South Second Ring Western Xi’an
Room 2008, 20/F, HNA Center
F: (86 23) 8655 1616 Shaanxi Province 710065 China
234 Yan An San Road
E: info-cn@arcadis.com T: (86 29) 8866 9711
Shinan District
F: (86 29) 8866 9760
DALIAN Qingdao
E: info-cn@arcadis.com
Unit 07, 32F, Xiwang Tower Shangdong Province 266071 China
136 Zhongshan Road Zhongshan District T: (86 532) 8280 1818
Dalian, Liaoning Province 116001 China F: (86 532) 8280 1881
E: info-cn@arcadis.com
T: (86 411) 8800 8018
F: (86 411) 8800 8823 SHANGHAI
E: info-cn@arcadis.com 11th Floor, Building C, The Place
No. 150 Zunyi Road
FOSHAN
Changning District
Room 1002-1004, 10F,
Shanghai 200051 China
LNTD Commercial Plaza, T: (86 21) 6026 1300
No.29, Zumiao Road, F: (86 21) 6026 1800
Chancheng District, Foshan, E: info-cn@arcadis.com
Guangdong Province, 528000, China
T: (86 757) 8203 0028 SHENYANG
F: (86 757) 8203 0029 Room 3013-3015
E: info-cn@arcadis.com Office Tower 1, Forum66
1-1 Qingnian Avenue
GUANGZHOU Shenhe District
3A10-18 Unit, 3A/F Shenyang
Bank of America Plaza Liaoning Province 110063 China
555 Ren Min Zhong Road Guangzhou T: (86 24) 3195 8880
Guangdong Province 510145 China F: (86 24) 3128 6983
T: (86 20) 8130 3813 E: info-cn@arcadis.com
F: (86 20) 8130 3812
E: info-cn@arcadis.com

QUARTERLY CONSTRUCTION COST REVIEW

16 FOURTH QUARTER 2018
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