ww, Bee nL a DECEMBER 2023 HONG KONG REPORT QUARTERLY CONSTRUCTION COST UPDATE RLB Rider Levett WE 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 Beting Chengdu Chongaing. Guangzhou Guyana Haikou Hangzhou Hong Kong Macau Nanjing Nanning Seoul Shanghai Shenyang Shenzhen Wuhan wuxi Xian Zhuhai South Asia Bacolod Bono! Cagayan de Oro Cebu lark Davao He Chi Min City lol 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 Las Vesas Los Angeles Maui New Yor‘ Phoenix Portland San Francisco ‘san Jose Seattle ‘oronto Waikoloa Washington DC America Alliance Mexico city EUROPE Birrningharn Bristol cambridge Cardiff Leeds Liverpeo! London Manchester Sheffield Thames Valley Warrington Eure Alliance Austria Belgium Bulgaria croatia Czech Republic Denmark France Germany Greece Hungary Ireland italy Luxembours Montenegro Netherlands Norway Polana Portugal Romania Serbia Spain Sweden Turkey MIDDLE EAST aatar Doha Saudl Arabla 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 Auckiana CChristehureh Dunestin Palmerston North Queenstown Tauranga Wellington HONG KONG REPORT | Quarterly Construction Cost Update - December 2023COST COMMENTARY RLB es Parra cevett Bucknall HONG KONG In the third quarter of 2023, Hang Keng’s economy gained momentum, propelled by the revival of inbound tourism and upswing in private consumption under Government's various support initiatives. Notably, the construction industry experienced substantial growth, with a 12.5% increase in expenditure on building and construction. The private sector also witnessed @ significant year-on-year rise of 19.0% compared to the previous year, considering the low baseline for comparison. In the 2023 Policy Address and Long-Term Housing Strategy Report, the Government has announced its commitment to addressing housing needs by identifying land for approximately 410,000 public housing units over the next ten years and 80,000 private housing units in coming five years, Meanwhile, the Government has devised plans to streamiine and expedite statutory and administrative procedures, as well as the approval of building plans for expediting land production. Apart from new land production, the Government has also made plans to utilize existing land, including Hung Hom stations, ex-Lamma Quarry site and "Green Belt” areas to maximize the development potential and optimize land usage. With Government's policy support, it is expected that the tender price index will experience a moderate rise in the forthcoming quarters. TENDER PRICE MOVEMENT 2,615 93 2023 TPI ECONOMIC OVERVIEW ike Gross Domestic Product A4.1% 3 2023 Y-0-Y in real terms Composite Consumer Price Index 42.0% 3 2023 Y-0-Y in real terms CONSTRUCTION INDUSTRY 43.98% Y-o¥ Unemployment Rate 2.8% Jul 2023 - Sep 2023 40.97% a0 EE) Underemployment Rate 1.0% Jul 2023 - Sep 2023 General Building and Superstructure Works 1600000 § 1200000 3 800.000 8 400.000] 2021 2022 2025 HONG KONG REPORT | Quarterly Construction Cast Update - December 2023 Source: Bulldings Department 3COST COMMENTARY HONG KONG CONSTRUCTION INDUSTRY Q3 2023 —=— Consent to Commence Notification to Commence Superstructure ' m 449% AT% A57% v49% Y-o¥ aoa Yo¥ aoa In terms of GFA In terms of GFA Consent to Commence Approval of Building Plans Foundation Works v6% v3% v8% 450% Yo aoa QD 9 vox aoa In terms of no In terms of no MACAU Macau's economy has experienced remarkable growth, thanks to several positive factors, including the thriving tourism and gaming sectors, One key diver of this growth has been the surge in visitor numbers which soared by 356.6% year-on-year to 19.9 million during the first three quarters of 2023, This surge in visitors has not only contributed to the robust tourism sector but also had a positive spillover effect on other sectors of the economy, The gaming industry, in particular, has played a pivotal role in Macau’s economic expansion. The gross revenue from games of fortune witnessed a growth of 305.3% year-on-year, reaching MOP129.0 billion in the first three quarters of 2023. Meanwhile, the construction sector has experienced substantial growth, driven by both public and private investments, Public construction investment increased by 26.8% in the third quarter of 2023, attributed to the ongoing construction of large infrastructure projects and public housing initiatives. Simultaneously, private construction investment also surged by a significant 61.5% year-on-year, driven by increased investments from gaming enterprises and other private entities taking advantage of the revived economic environment. With continued investments in both private and public construction projects, including public housing and transport infrastructure initiatives, it is expected that tender prices will gradually rise in the coming quarters. ECONOMIC OVERVIEW ts ° Gross Domestic Product Unemployment Rate Underemployment Rate ATI6.1% 2.4% 1.6% 3 2023 Y-0-Y in real terms Jul 2023 - Sep 2023 Jul 2023 - Sep 2023 Decale ‘While the information in this pubieatin is believed to corteet atthe time of publishing. no responsibilty is accepted forts accuracy. Persons desiring to uslize any information appearing in the publication shoua verily ke appicaalty to ther specific creumstances. Cost information in this publication inaicatve and for general guidance only ahd s Based on rates at Srd Quarter 2025, 4 HONG KONG REPORT | Quarterly Construction Cost Update - December 2023TENDER PRICE INDICES PY Rider Levett Bee Bucknall Tender Price Indices for Builder’s Works in Hong Kong Im RLA = Rider Levels Bucknall Private Sector) ENN MSN I TN EE) 7 Tot 160 100 HO 40 aia 44 258 160 545 206 27S 5 221 1570 164 20 203 460 262, a M2 WS 106 222 M45 256 WG 275 167 345 715 258 M45 258 155 270 174 350 208 SOO 285 5 130 «S124 250 44 2B 158 300 190 S18 203 243 157 255 153 275 185 $80 250 S55 304 uarer 198019811982 _—=T9RE_—stoaa 98S 198s 1987 gee toa9 19901897 G70 $47 620 385 650 364 560 298 570 S28 G60 326 GOs 376 665 S95 785 479 960 S42 1020 574 1090 6OB 570 353 620 393 620 370 SGO 298 570 382 S55 SIS GIS 392 690 AOE 820 SIO 960 S48 1030 S61 1075 S92 600 569 650 575 600 $42 S40 517 S70 325 S65 $44 G50 575 700 4 865 521 985 552 1045 S82 1075 975 610381 GIO 376 S80 327 $60 526 560 $37 585 351 655 380 740 458 925 S41 1000 559 1080 596 1055 SIS wrter 1992 _1993_—*1904 +1995 ——1996 198719981999 —2000—-2001 2002 —_~7008. 63s SH 025 527 7100 S86 G80 768 400 779 TE7S 907 1800 WOE 160 1004 TIO 958 400 #62 TO G87 1205 770 1020 S48 1045 527 1125 594 1550 712 450 B15 1660 953 1765 1054 I640 1051 1440 875 1580 BA2 1240 742 1250 725 1020 SI9 1075 S41 160 GIS TEGO 75% 485 B48 1760 996 1695 1065 1620 1025 1445 ASB 1560 807 1210 692 1195 722 1050 S18 1080 S65 1220 666 1570 747 1520 885 T8IO 1051 1675 1054 1600 989 1410 844 1290 721 TES 755 1210 681 F 255 685 60 711 TOO 74 1440 G1 VEBO WIE 1680 1074 1670 THA TB40 127E 1985 iA DMS sie 2560 1601 2510 WED 265 712 1270 716 1810 750 1475 859 1810 1505 1605 985 1750 NGI 1870 1520 2045 1438 2190 1537 2390 1648 2540 1761 1230 704 1275 718 1860 751 1535 906 1865 1401 1620 1M 1750 1249 1925 1569 2075 1467 2250 1559 2425 1679 2545 1777 1220701 1280 897 1410 789 1595 998 1750 1262 1655 1107 1785 1266 1955 1408 2100 1496 2290 1590 2460 17OS 2565 1775 Quarter 2016 __2017__—=2018 «2018 —*2020~—2021 «2022 «2028 «024 «2025 ~—«2028——~2027 [2565 175 2580 1779 7530 I75E 2595 1695 2500 Teal 2985 16F1 7490 1696 7570 785 las70 1776 2595 1776 2495 727 2885 1686 2265 1625 2400 1620 2475 1726 2590 1808, 80 1783 2565 1775 2465 1708 2355 1675 2260 1618 2545 1640 2515 1744 2615 J2se0 1781 2560 1768 2440 1698 2540 1652 2250 1625 2570 1679 2545 1765, HONG KONG REPORT | Quarterly Construction Cast Update - December 2023 5APPROXIMATE ORDER OF CONSTRUCTION COSTS IN RLB ieee HONG KONG AND SELECTED CITIES IN CHINA called poet 20234 #3 EPR + Sh BASH (Cost per Square Metre Construction Floor Area at 3rd Quarter 2023 Prices) ad mT mH 3k ea a we bis aN aR HongKong = Macau Guangzhou Zhuhai Beijing Shenyang Chengdu xian Shanghai Hangzhou —_—Nanjing HK$. Mop RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB eNO eae Borer hier) ects Pexcuny Office Aidit Sone '33700- 41200+ 18200-24400 8800-15300 8800-15200 8300-12400 9100-18200+ 8700-12600+ 8000-T1500r 8000-TIZ00r 9100-13100+ 8600-12200+ 8100-T1g00+ 8100-22000 Genes 73300-31900 12200-16500 4700-7900 4700-7900 4500-7500 5000-8200 4700-7800 4400-7200 4400-7300 5000-8200 4700-7800 4600-7200 4400-7200, Shopping Centre #35 Siena! 32900 - 39300 Residential 2% 28700 9100-14200 9.200- 4100+ _8700-15500r | @B00-14000" 8500-15000" 8200-12800 8000-11900" =18}00+ _9}00- 13300 8400-12900" 8900-12700" =8700 6800-8700 6700-8000 6700-8500, 23600 7400-8700 7400-8800 7100-8300 7100-8500 6600-7800 6600-7900 6500-7700 (En a 37400 - 45700+ 15400-22000 6500-8800r 6600-8800 6200-8400» 6800-8300+ 6300-8500r 6100-8200» 6000-8100» 6800-9500 6500-8900» 6300-8 700+ 600-8400" (ES EE I 22500-34500 2000-15800 3500-5200 ¥500"5900 _¥300"5600 440076200 3500-5800 —300-5500—4300"8400_¥a00"4a00 37005900 4600-5700 500-5500 So a S400" 65200" 41700-50800" 6800-8160" 80081000 5500. 7800 620078600" S600. 78D0N 5500-7700" 6400-7600 6200" 8a00v S800" 85000 S700" RIOON 5500. 78000 oc tee u 300- 48800 $2300-37500 4000-5200 4000-5200 800-5000 4800-5600 $800-5100 $800-5000 $800-4800 4300-5600 4000-5200 3800-5100 3800-5000 35400 - 56200+ 2570 700+ 1700-18600+ 1|800-18.600+ T00-17700+ 12800-19600 11200-17800+ 10800-1700 10700. 16800+ 12500 19.800+ 11700-18700+ T1500-18200+ _1100- 1,600+ 4850-9300t 3500-7700 500-1400+ 500-1500 S00- 1300+ 6OD-1600r $00-1500r $00-1.400+ 500-1400" =1600+ 600-1500 600-1400" 600-400 Hotel (including FF&E) imi ( SiHIA KiB ) Gases $8800- 48700+ $1000-$8000+ 15800 20200+ 15700 20200+ 15000-19200+ 15400-20200- 14700-18500 15800-18300 15800-18300+ 15700-20600 14J00-18400+ 14.400 18.000+ 14300 18.600+ star 31500-38500 24800-28600 71200-14800 11200-14800 10700-18600 71400-14700 10800-14000 10000-18}00 10000-18000 71000-14800 10100-18800 10200-18600 10800-1840 Industrial 5 eee one Nia ‘100-4800+ 100-4200 2900. 4000+ | SAOO-4a00" | S200.42007 JOO. Re00+ _S{00-5800r _3600-4400+ $400. 4100+ 3300. 4.000% 38000 Externe ey 17300 - 24.400+ N/A 4400-7900+ 4400- 8100+ 4100-7500 4400-7700+ 4200-7500+ 4100-7200 4]00-7200+ 4400-7900 4000-7I00+ _4000-7200- 4000 7100+ Enno zi700+ N/A 3400-3600+ $400-3700+ 3100-5400+ 3500-4000+ 3300-3800 _2600-5700+ 2400-3800+ 3500-5800+ 3500-3600+ 3200-3300+ Carpark $F CE teat) 25600-32500+ 11000-14000 4600-7700" 4700-7800" 4500-7400" | 4700-78007 4300-70007, 4400-7200" 4400-7200" 4600-7800" 4500-7200 4000-7100" 12600-15300+ 9.200-11500+ 3,400-5,200+ 3.400-5200+ 3200- 4900+ — 3700-5500+ —3300-4900+ —3.500- 4800+ —3300-4800+ 5.800-5500+ —3600-5200+ —3500-5,000+ 3.400- 4.900+ 7300" NoTES i: ieee mccmmsmireeara me arena te eee IEE cna eum eames tenets’ yor. mame ra hea ERE ° proiects wth fa ek pros ron reared oy a sec rae roa maria, finance, and legal expenses tet wale an voor. covers enteral cos SHOPPING CENTRE Wis Procurement apsreaehes ana malt phasing Sexson cht petesuanal ance se 1.9 ‘Sorautante tes an vomoursaie, value of and Sctses igor aran oecape by te 9 ot Homtotwsar seas MEZRBTE Eorgieion et Became pamaas mat: af i SraicUstess ves panne epee sate ht wats ond the ens covered by copies rd INoUStmiaLs LANDLORD C=) STS ib herewem nee Gancen sreaunancem: eeeee Socces soe anne wre 3 erty sytem, av conaionng, tecirel drBi0n tenant Seat produeton an warehousing equomer Rig tonesnn saceaneas San maperasiens SeaaRRGTSee ENTE ER am _ soem tes aoe Saban SenLe -emm MMH Boaasconh anaeaeaennisnems yan sieavanysuswtenancas) Te tr on APRONS SRUAERO 1m The stananes fr eacn type of bulding varies 2eeae eas Sm aren aneenieymeas G2 SN EPAZTRERE Ar ROR HaNARR! EA MEH TERIA OH AT “= EM: SMA « RTA ASS ROR = STIR 6 HONG KONG REPORT | Quarterly Construction Cost Update - December 2023 HONG KONG REPORT | Quarterly Consttuction Cost Undate - December 2028 7LABOUR COST TRENDS AVERAGE DAILY WAGES OF WORKERS ENGAGED IN PUBLIC SECTOR CONSTRUCTION PROJECTS Bar Bender Carpenter Concretor General and Fixer (Formwork) Workers yf \ $2,253 $1,861 $1,683 $1,079 Y-0-Y A£0.9% Y-0o-Y W1.2% Y-0-Y A2.6% Y-0-Y A4.8% Metal Worker Painter and Plasterer Plumber Decorator i oF $1,369 $1,283 $1,367 Y-0-Y A1.8% Y-0-Y A4.2% Y-0-Y W2.8% Y-0-Y A3.4% 22236|22203|z2m0|a2054| 238 | zn [az 62 |ss0| ss | a |. [asa ars2 oy aus [aes ass ons [ass sis e090 ar [nea a | aa [| 490 |iesse wear [rar 1s tas ice [tats] ioe] zn fin? faze hoses fiw 1 fase see [sea ores ‘seo een asa] taco} | aa] ees| ees | a ese] ata wee [ree] use| ls Painter and Decorator o76 2052 | 1265 t¥8s| ures | area ines) ana | [ose lx astern 998 wo | a 856 aso | [a 65 [semen 95 [sms [anos ea | ios [ise rsa | ise er ls Plumber 5 [son er [eso va fos |u| vas [sae [a [as | vena [ase [tee] aa [ies [anes was [es | wae (Source: Census and Statisties Department) 8 HONG KONG REPORT | Quarterly Construction Cost Update - December 2023Levett MATERIAL COST TRENDS Fa Bee Bucknall AVERAGE WHOLESALE PRICES OF SELECTED BUILDING MATERIALS Bitumen Galvanised Mild High Tensile ($/t) Steel Plates ($/t) Steel Bars ($/t) oe $9,700 $21,853 $5,730 Y-0-Y 2.0% Y-o-Y W7.2% Y-0-Y W12.7% Portland Cement Sand Sawn Hardwood ($/t) ($/10t) 50 x 75 ($/m*) LS $933 $3,080 $6,939 Y-0-Y 0.2% Y-0-Y 40.3% Y-0-Y =0.0% nurs |24364 2419256090555 |235]r5323 5.2 as 701 | aoc | razr | ne48| 2398 | 2007 41 | e02 | c4se [esse ser sre | ea | erm |soaz| sr |s768| 720 lm Porttand cement 6h lm sand s/100) 170 | 390 [30 [90 | 60 [3100 3240 |s090| 5360 [3220] seo | 570 [000 lm Sswmtarwesd |. s5s| cses |az79 | 779| 6778 e919 |220| g2r9| cass [sre] gate |cass sors «ate [gata | cars |ore| est9| cass |r ae rarer sss | z 691968 | 6939 |259| gts cass |sax9| 6 2 (Source: Census and Statisties Department) HONG KONG REPORT | Quarterly Construction Cast Update - December 2023COMMON UNIT RATES IN HONG KONG Bret Es Dd 150 mm Bed of hardcore mv 282 20% 00% Reinforced concrete Grade 35 im 480 42% 0% Reinforced concrete Grade 45, 1550 47% 6% Reinforced concrete Grade 60 my io 36% 06% Sawn formwork mv 480 67% 32% Deformed high yield steel bar reinforcement ka 180 6x 0.0% 100 mm Solid conerete block wall mt 410 51% 0.0% Waterproof membrane rooting /20 mm Horizont maste 80 oon cox 50 mm Reef insulation my 185, 28% 00% Satvanised mild coal in bahstrades,raiings and general | 5 49 ase cox Structural steelwork - standard sections (new works) ka 4 51% 0% 20 mm Cement and sand (1:3) paving/ screeding nv 136 41% 00% 6 mm skim coat plaster, mv 133 39% 00% Gypsumbeard suspended ceiling me 560 3% 00% Metal panel suspenied ceiling ns 67% 0.0% Reni cuubeccmcm ence: TM 16 sex oon Proprietary vertical green wall system mv 6,900 3.0% 0.0% Proprietary green roof system me 3,050 3.0% 00% 8.80kW power rating photovoltaic system 8.650 3.0% 0.0% 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 ite conditions, locations andl normal working hours 10 HONG KONG REPORT | Quarterly Construction Cost Update - December 2023NORTH AISA OFFICES ALTE DBE AR HONG KONG fea 15th “tor 17k cheung Ro3e feb anametei = RESETS Teleonone if: 852 2828 123 Foesmie R852 286265, Erma 8 horghonginrio com BEING eR ches sabe emake 248 pers {85} 100008 Teleonone ig: #6 065155816 Frrai #8 Beingtensiscom CHENGDU meas Rem 29012804. 2% Floor Nove Dongyu Steet Chergd si0016 hn PRR SearneCE AN ERA 29 98 7901-2004 = 5 si00%6 Teleonone tis 8628 8670 3882 Ermal $a) energauseniocom CHONGAING mE Room 5 417-8 39/7 1° Tower 1 Ne! Girgyun Rosa Chergang 400024 SRERRE TERRES Barat pam S813 R718 BE, #8 co002e Telesnone tig: 86 23 6380 6628 Emma! #8 ehorgargacnsibeom GUANGZHOU FH em ser ARS ‘Siegen 602 508 = 5 510825 Teleonone ti 8620 8/52 180) Ermal ab g.angerouaensibcom GUIVANG SH Room 12th Flor 16 xin ua Rone SRasnsne Beas Reps Rew Toepnore iF #6 858553 886 Erma is: guyaraensiocom HAIKU #8 Haran Prownee Chin SRRHERCAATIS 58 & IYER 171705 BANE) 570102 ‘eeanore 86 896657 Erma is Maioutien com HANGZHOU fH Ror 1603, 6th For No 61 Shao X-g Road Harganou s10004 SRaceRees “Fie 6 syaULemsse 6a 1605 18, sio008 ‘eeohore iif: 86 5718559 5028 Eales mangzreuttertscom MACAU IAT lores Dr Carlos” Assumorto ane REL i698 § rind ‘ecohone iF 855-2875 $088 Faesin f 458 2875 3808 mal 95: maeassmeribcom INANUING WE oka waa 2018 Sarees UAE 20e a z0008 ‘sonore iE 86 25 8678 0500 mal Bis ranieaiaensiacom NANNING Room 2208, 22% Floor No 36 sinew Rose Nanning 380000 ima amr ee RRA RA 36-e (RRM SG 2 2205 81580000 Telephone if: 86 7715896 101 Erni i ranningitena corn SEOUL Hm (Yeoksam Dong Daen Sulsra) Teleshone sig 822 Sa? 2834 Facemie fm: 82 2568 5752 Ermal al re0u @urlb com SHANGHAI Ei 2nd Foor, Gieenach Tower dirgan Dies china emt aad 36 HS 22 81200070, Teleshone sig: 86 216350 1999 Erma! 4 shangrav@enrocom SHENYANG 2858 Tower & resent Buiing Heprg Dirt oRUT AE aman 69s BBAWAB 5 fsino00s Teleshone tig 36.24 2396 5516 Evmal 8 shenjargiaersibcom SHENZHEN sea Suaradera Province ar RRA va 5002 5 RST RUA A510-4516 1535 s1a001 Teleohone i 86 155 8246 0958 Erma i shershenienibeor HONG KONG REPORT | Quarterly Construction Cast Update - December 2028 WUHAN att oor $801, $83 For Nobee Jngran Avene whan £50080 ec RNA 88 S LORI avne 5501 18, 480080 Teephore i: 86 27 6805 0986 Erma i anitenr'9com WOX! 8 Jargsu Provence pRIsase ReERERS BRMG Um EOD i zie000 Teprore iif 46 so #276 0266 smal" unten cor XIAN FS oor 506, 5th Fa0% Tower Nowa Nanguan Zreng set ion 70088 FRananK RAR HRE G8 FERRED F BIS 1506 5 fm 70068 “eephone ais 85 293833 7488 [Erma ti enennincom ZHUHAL oor 101402, th Floor ‘No, 1188s Zhuo Rose E35 ‘hans sists Ter Ree EALARIA 99% SALA 4 # 0Hc02 = a si80%5 “eephore fh: 86 756 555 0997 Ema shunaitenrincomeeRooa) eee eC ME a OO RLB nella Levett Alte EeMenmall