TENDER PRICE INDICES AND COST TRENDS IN HONG KONG
Commentary
L&B = Levett & Bailey (Private Sector)
ASD = Architectural Services Department (Public Sector)
Year Mark at Fourth Quarter
ASD
(Source: Census and Statistics Department)
Average Daily Wages of Workers Engaged in
Public Sector Construction Projects
Average Daily Wages in HK$ per day
Selected Occupations
2003
2004 2005
1112
123
4
5678 9 1011
12
1
234
5
6
Bar Bender and Fixer 1,258.41,249.71,243.81,248.61,245.11,236.31,219.91,225.41,221.21,220.71,210.11,202.71,200.91,195.41,191.01,197.01,188.31,183.81,163.81,159.6Concretor
1,032.01,021.91,031.31,029.71,027.71,021.51,017.41,026.31,011.71,013.11,011.91,018.01,011.91,006.2993.7990.1974.6956.6947.2923.5Carpenter (formwork)1,188.61,184.81,199.21,201.31,199.31,162.81,149.51,146.91,148.21,135.41,123.81,102.31,108.31,097.21,094.91,102.51,073.41,078.91,077.21,073.7Painter and Decorator 872.2894.8901.3901.6903.4886.4872.8878.4885.2886.6882.4871.8865.0866.5859.2842.7844.4843.6854.5853.6Plasterer 977.7981.9973.8958.4949.7930.3932.8934.9949.9932.2933.2921.3911.2904.6912.1913.9896.6905.1904.3883.3Metal Worker 869.5863.6860.0863.5867.6847.1845.8853.1856.5854.8860.2855.1846.4852.6850.5847.3843.3841.3850.4840.9Plumber 976.8967.6981.3965.9964.8940.9929.2933.8947.0949.2946.8945.7944.2936.7928.7905.3902.2910.2911.8903.3General Workers
587.2
589.1
590.3
590.0
590.4
588.6
581.7
584.9
582.1
579.5
578.5
579.7
581.3
576.9
575.8
570.2
568.8
573.0
572.8
571.7
750
8008509009501,0001,0501,1001,1501,2001,2501,3001,3501,400
1112
12
3
4
5
6
7
8
9
10
11
12
103
04
05
2
3
4
5
6
550
600
650
700
750
800
850
900
950
1,000
1,050
1,100
1,150
1,200
Month / Year
D a i l y W a g e s (H K $ p e r d a y )
Building Materials
2003 20042005
10
11
12
1
2
3
4
567
8
9
10
11
12
1
2
3
4
5
Sand ($/10 t)260.00
260.00
260.00
260.00
250.00
260.00
260.00
250.00
250.00
250.00
250.00
240.00
240.00
240.00
240.00
250.00
260.00
260.00
270.00
270.00
Bitumen ($/t)
3,650.003,650.003,650.003,650.003,650.003,650.003,650.003,800.003,800.003,800.003,800.003,800.003,800.004,050.004,050.003,967.003,800.003,800.004,050.004,050.00Portland Cement ($/t)500.00
500.00
499.00
502.00
502.00
496.00
496.00
497.00
491.00
491.00
491.00
491.00
491.00
491.00
491.00
491.00
492.00
501.00
511.00
511.00
Sawn Hardwood 50x75 ($/m 3
)
2,081.002,089.002,136.002,136.002,185.002,270.002,264.002,261.002,284.002,284.002,333.002,461.002,522.002,526.002,526.002,588.002,659.002,666.002,931.003,051.00Mild Steel Round Bars ($/t)2,867.003,113.003,359.003,666.004,259.004,325.004,187.003,933.003,815.003,839.003,905.004,164.004,207.004,207.004,207.004,232.004,298.004,281.004,335.004,283.00High Tensile Steel Bars ($/t)
2,701.002,879.003,210.003,423.004,244.004,284.004,145.003,799.003,668.003,555.003,694.003,745.003,817.003,770.003,809.003,838.003,906.003,915.003,922.003,866.00
Average Wholesale Prices of Selected Building Materials
(Source: Census and Statistics Department)
Month / Year
C o s t s o f M a t e r i a l s (H K $)
200
3004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,000
2,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1001003
04
05
11
12
12
3
4
5
6
7
8
9
10
11
12
12
3
4
5
1,900
2,0002,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,5004,6004,7004,800
Labour and Material Cost Indices
(Note : These indices are prepared on basis of Government building projects which do not necessarily reflect conditions in the private sector)
Index
2003 20042005
10
11
12
1
2
3
4
567
8
9
10
11
12
1
2
3
4
5
Material Index 761.59
763.24
765.02
782.48
786.08
783.59
778.28
781.03
777.84
778.54
782.05
775.17
777.78
779.65
781.08
781.40
782.71
785.16
782.71
783.10
Labour Index
3,461.053,451.913,457.253,482.213,453.823,437.783,405.263,391.633,421.203,425.613,413.843,418.393,408.513,390.453,386.543,371.433,386.063,367.783,368.873,362.80Consolidated Labour &
1,716.251,714.081,717.131,737.251,729.541,722.261,707.331,704.291,712.681,714.691,712.801,709.961,708.161,702.981,702.521,697.391,703.411,698.541,697.331,695.44
Material Index (Building Cost Index)
Labour and Material Cost Indices
Labour and Material Cost Indices
Month / Year
I n d e x
500
6007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,000
2,800
2,900
3,000
3,100
3,200
3,300
3,400
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
1011
12
12
3
4
5
6
7
8
9
10
11
12
103
04
05
2
3
4
5
(Source: Architectural Services Department)
350
550
750
950
1150
1350
1550
1750
1950
190
3191
31923193
3194
31953196
3197
31983199
3100
31013102
3103
31043105
3242
4
24242
4
24242
4
24242
4
24242
4
2424
ASD
L&B
L&B = Levett & Bailey (Private Sector)
ASD = Architectural Services Department (Public Sector)
Tender Price Indices since 1990
Quarter / Year
Tender Price Indices
Tender Price Indices
L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD L&B ASD
Quarter 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979
1104160100210140238144258160345206275145221150270164320203460262211217310622214323614627516734521325814523815327017435020850028531301851242301442381583001903182032431372551532731853802305353044100148198131238143245158325199290191228140263149300201420238550329
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 19911570347620389630364560298570328560326605376665385785479960542102057410906082570353620393620370560298570332555335615392690403820510960548103056110755923600369630375600342540317570323565344630373700411865521985552104558210755734610381630376580327560326560337585351655380740438925541100055910805961055515
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003110355311025527110058612807081400772157590218001103166010241510959140086212706871205720210205481045527112559413307121430813166095317651054164010311440873139084212407421230723310205191075541116061513607331485848176099616951065162010251435858136080712106921195722410305181080563122066613707471520885181010511675103416009891410844129072111857331210681
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20151125568512607112126571212703123070441220701
Construction Costs
Approximate Order of Construction Costs in Hong Kong and Major Cities in China
(Cost per Square Metre Construction Floor Area at 2nd Quarter 2005 Prices)
Type of Building Hong Kong Beijing Shanghai Guangzhou Shenzhen Macau
HK$RMB RMB RMB RMB MOP Office
High Quality09,800 - 13,1005,500 - 8,2005,300 - 8,0005,200 - 7,8005,200 - 7,80008,800 - 11,400 Medium Quality8,400 - 9,7004,200 - 5,7003,950 - 5,5003,750 - 5,2003,750 - 5,2007,400 - 8,800 Ordinary Quality7,300 - 8,8003,050 - 4,1502,850 - 3,9502,750 - 3,7502,750 - 3,7506,000 - 7,700 Shopping Centre
High Quality13,500 - 16,0006,200 - 9,4506,000 - 9,2505,800 - 8,6005,800 - 8,600N/A Medium Quality10,300 - 12,2004,750 - 6,1004,550 - 5,9004,050 - 5,6004,050 - 5,600N/A Residential
High Rise; High Quality08,600 - 10,8003,050 - 4,2502,950 - 4,0502,800 - 3,7502,800 - 3,7506,200 - 8,100 High Rise; Better Quality7,400 - 8,8002,550 - 3,0502,450 - 3,0002,300 - 2,9002,300 - 2,9005,000 - 6,500 High Rise; Ordinary Quality6,200 - 7,5001,500 - 2,1501,400 - 2,1001,300 - 1,9001,300 - 1,9004,200 - 5,200 House; High Quality14,200 - 16,8003,550 - 4,6503,350 - 4,4503,250 - 4,3503,250 - 4,350N/A House; Medium Quality10,500 - 13,3002,200 - 2,8502,000 - 2,6501,800 - 2,6001,800 - 2,600N/A Hotel (including FF&E)
5-Star15,000 - 18,10009,350 - 12,05009,250 - 11,85008,850 - 11,25008,850 - 11,25014,000 - 17,000 3-Star12,000 - 13,8006,700 - 8,6006,700 - 8,3506,300 - 8,0006,300 - 8,00011,000 - 13,000 Industrial
Landlord; High Rise4,600 - 5,2001,800 - 2,5001,800 - 2,4501,500 - 2,1501,500 - 2,150N/A
End User; Low Rise5,400 - 8,9002,850 - 4,8502,850 - 4,8502,550 - 4,6002,550 - 4,600N/A Carpark
Basement; up to 2 Levels6,700 - 9,8002,550 - 4,5502,850 - 4,8002,550 - 4,6002,550 - 4,6004,100 - 5,700 Multi-Storey3,900 - 4,5001,700 - 2,2001,700 - 2,2001,600 - 2,1001,600 - 2,100N/A NOTES
?The construction costs above are based on prices obtained by competitive tendering for lump sum fixed price contracts with a normal contract period and are based on normal site conditions and locations.
?The costs are average square metre unit costs only not based on any specific drawings / design. Therefore they provide nothing more than a rough guide to the probable cost of a building. Figures outside the given ranges may be encountered. When information is required on a specific project, it is essential that professional advice be sought.
?The standards for each type of building in major cities in China do not necessarily follow those in Hong Kong due to local design practices and choice of materials.
?The costs exclude furniture, fittings and equipment (except hotel / serviced apartment), site formation and external works, finance and legal expenses, consultants’ fees and reimbursibles, value of land and fluctuations in prices between now and the time of calling tenders.
?Other Specific Exclusions:
Hotel: pre-opening expenses, operating expenses, working capital, staff training and administrative costs
Shopping Centre: fit out to tenant areas
Industrial; Landlord: security system, air conditioning, electrical distribution in tenant areas; production and warehousing equipment; special M&E provisions
Projects in Major Cities in China: utilities to the site beyond site boundary, connection charges and capital contribution; local authority levies and taxation; import duties
?Construction floor areas are measured to the outside face of external walls (or in the absence of such walls, the external perimeter) of the building & include all lift shafts, stairwells and E&M rooms but exclude lightwells and atrium voids. These areas are usually larger than Architect’s calculation of G ross F loor A rea (Plot Ratio Area).