MARCH 2023 HONG KONG REPORT QUARTERLY CONSTRUCTION COST UPDATE RLB Rider Levett WEE BucknallOFFICES AROUND THE WORLD AFRICA Angola Luanda Botswana Gaborone Kenya Nairobi Mauritius Quatre Bornes Mozambique Maputo Namibia Windhoek Nigeria Lagos Seychelles Vietoria South Africa cape Town Durban Pretoria Stellenbosch ASIA North Asia Being Chengdu Chongcing Guangzhou Guyana Haikou Hangzhou Hong Kong Macau Naniing Nanning Seoul Shanghai Shenyang Shenzhen Wuhan wuxi Xian Zhuhai South Asia Bacolod Bono! Cagayan de Oro Cebu lark Davao He Chi Min city loll Jakarta Kuala Lumpur Laguna Metro Manila Phnom Penn Singapore Yangon Maldives. Hulhumale India Alliance Bangalore AMERICAS Caribbean St Lucia North America Boston Calgary Chicago. Denver Hilo Honolula Kansas City Las Vegas Los Angeles Maui New York Phoenix Portland ‘san Francisco San Jose Seattle Toronto Waikoloa Washington DC America Alliance Mexico City EUROPE Birrningharn Bristol cambridge Cardiff Cumbria Leeds Liverpoo! London Manchester Sheffield Thames Valley Warrington Eure Alliance Austria Belgium Bulgaria Croatia Czech Republic Denmark France Germany Greece Hungary Ireland Italy Luxembourg Montenesro Netherlands Norway Poland Portugal Romania Serbia Spain Swecien Turkey MIDDLE EAST aatar Dona Saudi Arabia Riyadh United Arab Emirates Abu Dhabi Dubai OCEANIA Australia Adelaide Brisbane Cairns canberra Coffs Harbour Darwin Gold Coast Melbourne Newcastle Perth Sunshine Coast sydney Townsville New Zealand Auckiang CChristehureh Dunectin Palmerston North Queenstown Tauranga Wellington HONG KONG REPORT | Quarterly Construction Cost Update - Mareh 2028COST COMMENTARY RLB ee Parra cevett 8 Bucknall HONG KONG ‘The Hong Kong economy is poised for a robust recovery in 2023 with resumption of cross-border land transportation and the revival of the Mainland economy. Expenditure on building and construction in real terms increased by a notable 4.1% year-on-year, surpassing the 21% increase in the thiral quarter. In particular, ‘the public sector saw a remarkable growth of 8.8%. The recently announced 2023-24 Land Sale Programme, highlighted in the 2023-24 Budget, is set to cover 12 residential sites. Coupled with railway property development and redevelopment projects, the potential land supply in 2023 is anticipated to exceed the annual demand projected in the Long Term Housing Strategy by 60%. In addition, the Housing Bureau has earmarked 8 sites for light public housing development, aiming to deliver 30,000 units in the next five years. These initiatives along with the development of strategic growth areas such as The Northern Metropolis and the Kau Yi Chau Artificial Islands will bode well for the industry's outlook. It's projected that the tender price index will rise moderately in the coming quarters, TENDER PRICE MOVEMENT 2,545 AT7.38% A119% Shs 04 2022 TP ve aoa ECONOMIC OVERVIEW i Gross Dome: Composite Consumer | Unemployment Underemployment Product Price Index Rate Rate V4.2% 42.0% 3.5% 1.5% 42022 Y-0-¥ in eal terms | @4 2022 Y-o-Yinrealterms | Oct 2022 - Dec 2022 (Oct 2022 - Dec 2022 CONSTRUCTION INDUSTRY scooova General Building and Superstructure Works © 1200000] 3 800.000 3 400000) consent commence NI Notieaion to commence Source: Buldings Department HONG KONG REPORT | Quarterly Construction Cast Update - March 2028 3COST COMMENTARY HONG KONG CONSTRUCTION INDUSTRY @4 2022 Consent to Commence Notification to Commence Superstructure — A5% A71% V66% A24% Y-o¥ aoa Yo¥ 0-8 In terms of GFA In terms of GFA Consent to Commence Approval of Building Plans Foundation Works v5% A15% V26% V38% Yo aoa v Yo aoa In terms of no. In terms of no. MACAU Following the relaxation of COVID-19 travel restrictions, Macau's economy has exhibited a positive resurgence, marked by a substantial increase in visitor numbers, This upswing in tourism and gambling had a considerate impact on the region’s economy. in the fourth quarter of 2022, public construction investment grew by 111%, attributed to engoing public housing and infrastructure projects. However, private construction investment declined by 29.3% year-on-year due to reduced investment in the casino industry. Despite the setback, the upcoming grant of new 10-year gaming licenses, set to take effect from January 2023, is expected to provide a much-needed boost to private investment in the future To further stimulate domestic demand, the Macau government is ramping up its public infrastructure investment, This is anticipated to create new job opportunities and boost consumer spending, consequently catalyzing economic growth, Tender prices are projected to moderately rise in the coming quarters, signifying & positive outlook for the economy, ECONOMIC OVERVIEW Gross Domestic Product Unemployment Rate Underemployment Rate V23.4% 3.5% 3.9% Q4 2022 Y-0-Y in real terms Oct 2022 - Dec 2022 Oct 2022 - Dec 2022 Diecaime ‘While the information in this pubieation is believed to correct atthe time of publishing. no responsibilty is accepted forts accuracy. Persons desiring to uslize any information appearing in the publication shoula verily ke appieaalty to ther specific creumstances, Cost information in this publication is inaicatve and for general guidance only ahd s Based on rates at ath Quarter 2022. 4 HONG KONG REPORT | Quarterly Construction Cost Update - Mareh 2028TENDER PRICE INDICES PY Rider Levett Bee Bucknall Tender Price Indices for Builder's Works in Hong Kong Year lm RIA = Rider Levels Bucknall Private Sector) _-NMLASD = Architectural Services Department (Publi Sector) ENN MNS I TN NEE) 7 Tot 160 100, HO 4 aia 44 258 160 545 206 27S MS 221 150270 16a 320 203 460 262, a M2 WS 106 222 M45 256 WG 275 167 345 715 258 M45 258 155 270 174 350 208 SOO 285 5 JO «S124 250 M44 2B 158 300 190 S18 203 245 157 255 153 275 185 380 250 S55 304 uarer 1980198) 1982 _—=T9RE_—itoa4—it9es 198s 1987 gee tea 19901897 G70 $47 620 385 650 364 560 298 570 S28 G60 326 GOs 376 665 S95 785 479 960 S42 1020 S74 1090 GOB 570 353 620 393 620 370 SGO 298 570 382 S55 SIS GIS 392 690 40S 820 SIO 960 S48 1010 S61 1075 S92 600 $69 630 575 600 $42 S40 517 S70 325 S65 $44 G50 575 700 4 865 521 985 552 1045 582 1075 975 610_$81 GIO 376 S80 327 $60 526 560 $37 585 351 695 380 740 458 925 S41 1000 559 1080 586 1055 SIS wrter 1997 1993_—*1904 +1995 ~——*996 19879981999 —2000_—~2001 2002 —_~7008. fess SH 025 527 100 S86 80 708 400 779 TS7S 907 1800 WOE 1660 1004 TIO 958 1400 B62 WTO G87 1205 770 1020 S48 1045 27 1125 594 1550 712 1450 B15 1660 953 1765 1054 I640 1051 1440 475 1580 BA2 1240 742 1250 725 1020 SI9 1075 SM1 160 GIS TEGO 75E 485 B48 1760 996 1695 1065 1620 1025 44S ASB 1560 807 1210 692 19S 722 1050 S18 1080 S65 1220 666 1570 747 1520 885 TIO 1051 1675 1054 1600 989 1410 844 1290 727 TES 755 1210 681 FE [ass 685 60 7H WOO 74 1440 G21 1EBO WE 1680 1074 1670 4 Te40 127E ]8S ie DiS Ise 2560 1621 2510 WED 265 712 1270 716 1810 750 1475 859 1810 1505 1605 985 1750 NGI 1870 1520 2045 1438 2190 1537 2390 1648 2540 1761 230 704 1275 718 1860 751 1535 906 1865 1401 1620 1M 1750 1249 1925 1369 2075 1467 2250 1559 2425 1679 2545 1777 1220701 1280 897 1410 789 1595 998 1750 1262 1655 1107 1785 1266 1955 1408 2100 1496 2290 1590 2460 1708 2565 1775 Quarter 2016 __2017__—=2018 «2018 ——*2020 «2021 —«2022 «2028 «024 ——20258~—«2028 «2027 Fa565 1775 2580 1779 7550 I7EE 2505 1695 2500 T6Al 2985 16H 2470 1696 fas7o 1776 2595 176 2495 W727 2585 1686 2265 1625 2400 1620 2475 1726 seo 1783 2565 1775 2465 1708 7555 1675 2260 1618 2545 1640 2515 1744 }2s80 1781 2560 1768 2440 1698 2540 1652 2250 1625 2370 1679 2545 HONG KONG REPORT | Quarterly Construction Cast Update - March 2023 5APPROXIMATE ORDER OF CONSTRUCTION COSTS IN RLB tea HONG KONG AND SELECTED CITIES IN CHINA Eseg poet 20224 S45 PE Sih BAS He (Cost per Square Metre Construction Floor Area at 4th Quarter 2022 Prices) ad wT rn wil RS hee mt we bis aN aR HongKong = Macau = Guangzhou Shenzhen = Zhuhai Beijing Shenyang Chengdu xian Shanghai Hangzhou —_—Nanjing HK$: Mop RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RUE eae Borer ier) North China Pesan Office Aisi Sone 32700 40,000+ 18200-24,200+ 700-13000+ 8600-12800 8200-12200 9200-18300 _8800-12700+ _BI00-T1600+ _B/00-T1500+ 9.000- 15.000 8500-12200+ &000-T1g00+ _8000- 12,000% Ordinary 22500-30800 12100-16400 4600-7800 4600-7700 4400-7400 5000-8500 4700-7900 4400-7300 4400-7300 5000-8100 4700-7700 4600-7200 4400-7200, Shopping Centre #35) Ponte! 32000 - 3820+ 23300-28500 9000-13900 9000-15800+ @600-18200r | 9000-14)00r 8400-8100 8300-12900" 8100-12100 Residential =14900% 9000 8300-[2800+ 8800-12600 +8600 6800 6700-7900 6700-8400, 00 19200-22800 7300-8600 7300-8600 7000-8200 7200-8600 6700-8000 6600-7900 6500-7700 Eee ee 56300-44400 1300 500-8706" 400-8700" 6100" B50N BBODT SAO ODOT BSUGT_EIOO- BISON GOGO BHGEN E900 94000 8500-88000 6300- BBOGF 23008 Scr ee I 22200-5500 000 350075800 4500-5800 3300-5500 380076300 _¥500-9800 430078500 29005400 4800-6200 600-5800 3800-5700 3500 sia00- «23008 4400 S700" 8100" 8700" 8100" _S400~ 7700" €00" 8700 600-7806" 5560717000 S400" 7RG0" 6200" A700" 5900-8200" 5700-8000" 77008 (ee te I £52005 47400 2300 4900" $560 40605100 $800. 4800 450075600 $800. 5100 4005000 800-4800 4200-5800 4000" S200 4800" 5100 908 = e008 2550 7800-18366" 1500-18300" 19800-7400" Tadd T8700" 1400. Ta90" T6800. |75000 TaR0O- Hider 12400-8700 1700-18500" 1350 RSG 1900-74804 4700-8100 3500-7700+ 500 1400% 500 1500+ 500-1800 980-1600 900-1500 S50-14D0+ 550-1400% 600-1800 580-1500 550-1400" 550-4004 Hotel (including FF&E) imi ( Si5HIA BIB ) Gases $8,600 - 47 + $0800- $7800 16500-19900 15550. 19800+ 14700-18900 | 1SS00=ZOAOOF TABOO 9G0OF 14000. 18S00% 1400. TSOOF 15.600-20500+ 14000-18200 14300-18800 14200-18.400+ star 30,600 - 57300 24,600 71000-14000 11000-14000 10500-18300 11500-14800 10800-14700 1000-15200 10300-18200 71000-14700 10,000 18800 10100-13500 10.400. 15,300 Industrial 5 ene weer 1500 - 16,400 Nia 100. 4700+ $100. 4200+ 2900. 4000+ | S400. 4a00" S200. 42007 BNO. Re0Gr {00 FS00F _3500-4400+ 3300. 4100+ 3200. 4.000+ 38000 Externe y 16900 - 24.400+ N/A 4300-7800 4400-7900+ 4100- 7400+ 4400-7800+ 4200-7400+ 4100-7200 4700- 7200+ 4400-71800+ 4000-7100+ 4000-7200- 4000 7I00+ 210% 3200+ 3000-3300 Eni 6.80 Nia 3350-3600+ $400-3700+ $100-3400+ 3500-4000 $300-3800+ 2600-3700+ 2400-3800» 3400-3700r 3200-3500+ I Carpark # F CE teat 24200-32100+ 11000-15900+ 4500-7600+ 4600-7600+ 4400-7300r 4700-7800+ 4300- 7100+ 4400-7200+ 4400-7200 4600-7700 4300-7200 4000-7100 11600 - 14500+ 9200-1,500+ 3400-51004 3.400-5]0G+ __3200- 4800+ — $:700-5500+ 3300-4900 3300-48004 3300- 4800F —5,700- 5500+ 3.500-57200+ 3,400- 5.0004 — 3300- 4.9004 7300 NOTES 3: vores ae cee ° Sent ior thy wae rang rein aah Steed F 2022 ema str « tnteynl nator eerna perimeter Drojects with fast wack program rnen ntormaton is reaures 9 specie Brole roa) works, finance and legal expenses ‘uct wal plant rors coveres external fisors Dat ‘SHOPPING CENTRE ti: EAT ZMH TSR 2 OH AT “= REM: SMA - RT ARES ASSN ROR = STIR 6 HONG KONG REPORT | Quarterly Construction Cost Update - March 2023 HONG KONG REPORT | Quarterly Consttuction Cost Update - March 2023 7LABOUR COST TRENDS AVERAGE DAILY WAGES OF WORKERS ENGAGED IN PUBLIC SECTOR CONSTRUCTION PROJECTS Bar Bender Carpenter Concretor General and Fixer (Formwork) Workers oe l $2,236 $1,894 $1,754 $1,036 Y-0-Y =0.0% Y-0-Y A0.9% Y-0-Y W1.0% Y-0-Y 0.3% Metal Worker Painter and Plasterer Plumber Decorator i $1,365 $1,212 Y-0-Y W0.4% Y-0-Y W8.7% va fan ass] ars ass area ass esa [wns ace] ase | ar: [ane] ss vee [seo [ia] rma 03 ye | is | sa [sa rosso saa | eae ss roa fi cova va [iaze foes 2a | ona | haar [rons ate ios sas] iss) we] azes| ve [sea] ero] iz | sea] sas | ass) se) ass] vasa] sta] sen lm Painter ant Decorator 073 |v | 4s [ize aseo| ize ives| ina ae [izore aor ae tae [aras| aa |e | 2082 lm laser wate [we [908 oe ans [wana as | acs |azoo| an | van | 967 |e | ea [ast as [asa | wos ana lex Plumber ans [anes] es | sr] ese ston [isan ase | 5s [oa [sone aan aa [oes [ese | ans [waa [aes ana | (Source: Census and Statisties Department) 8 HONG KONG REPORT | Quarterly Construction Cost Update - Mareh 2028Levett MATERIAL COST TRENDS Fa Bee Bucknall AVERAGE WHOLESALE PRICES OF SELECTED BUILDING MATERIALS Bitumen Galvanised Mild High Tensile (s/t) Steel Plates ($/t) Steel Bars ($/t) ée, $9,900 $23,241 $6,456 Y-0-Y 412.5% Y-0-Y V1.6% Y-0-Y W13.0% Portland Cement Sand Sawn Hardwood ($/t) ($/10t) 50 x 75 ($/m*) Zs $931 $3,130 $6,939 Y-0-Y A51% Y-0-Y W25% Y-0-Y A5.7% 800 | 8.0 219 |aa4s| 2 6s1|226%6 262925045 24200 243264350 la32s|on24 ais ‘rae 7260 | x50 | 506 | r51 |4se| 2401 | 7424 | 2204 |n01| gore |n027 | ne48| 730s | 007 [e796 esee| cn e302 | 64s Je Portiand cement a | ro | arr | a70| ane | 28 | 227 | aoe | 2s | 255 | 6 | ox | sn | on | om | an | on wo " lm sand s/100) -290| 2940 5380 | s10 | 320 | 5240 | so | 390 4160 |s100 | 5020] 20702940 [sara | sno eee ese esa es sts [ess | ees | esas [6 e778 e919 |6219| gre | cass |eat9 | 209 5075 ($m) ° (Source: Census and Statisties Department) HONG KONG REPORT | Quarterly Construction Cast Update - March 2023 9COMMON UNIT RATES IN HONG KONG CLP irre Ee 150 mm Bed of hardcore mv 250 42% 12% Reinforced concrete Grade 35 m 1480 153% 20% Reinforced concrete Grade 45 520 26% 2mm Reinforced concrete Grade 60 mv 1680 120% 1% Sawn formwork wy 485 83% 1% Deformed high yield stool bar reinforcement ka ne 57% 8% 100 mm Solid conerete block wall mt 450 98% 12% Waterproof membrane rooting /20 mm Horizont masse seo sox cox 50 mm Reef insulation my 185 38% 28% Salvaised mild cea in bastrades,raiings and general | 5 58 12% sex Structural steelwork - standard sections (new works) kg 40 212% 26% 20 mm Cement and sand (1:3) paving/ screeding mv 135 30% 33% ‘6 mm skim coat plaster nv 150 83% 16% Gypsumbeard suspended ceiling me 350 78% 19% Metal panel suspencied ceiling 700 94% 45% Beni uubeccmomcencncc: TM os tose aoe Vertical green wall system (Proprietary product) mv 6800 46% 18% Green roof system (Proprietary product) me 3,000 75% 14% 8.80kW power rating photovoltaic system 8,500 73% 12% Notes "The unt rates above are for general guidelines of likely tendered rates obtained by competitive tendering for lump sum fixed price contracts with anormal contract period “ie rates are azo 8azed on normal site conditions locations ane normal working hours 10 HONG KONG REPORT | Quarterly Construction Cost Update - March 2023NORTH AISA OFFICES ALTE Dp SEA HONG KONG fea 15th “tor 17K cheung Ro3e feb nnameten i = RESBI HTS Teleonone if: 852 2828 123 Faesmie 852 206 265, Erma 8 horgkonginro com BELING 46 embet BRERA 208 APD 18 GOS 809 fs 100004 Telepnone #8 86 06515 S88 Faeimie £8610 655 5818 Erma! 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