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Content
1. Focus on The New Competition Bill in Hong Kong 2. Approximate Building Costs in Hong Kong 3. General Trend of Building Works Tender Prices in Hong Kong 4. Labour Index & Average Daily Wage of Workers Engaged in Public Sector Construction Projects 5. Materials Indices & Average Material Prices 6. Usable Floor Areas Completed / With Consent to Commence 7. Gross Value of Construction Work Performed 8. Approximate Building Costs for Major Cities in Asia
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 source is quoted.
It is said that the devil is in the detail. If the details are not properly sorted out in the first place, the best of intentions can also cause considerable harm to those it is supposed to protect. Given the numerous problems raised by the Minimum Wages Law that was implemented on 1st May 2011, it is essential that this time, the Government should not try to push through a Bill in such a broad-brush manner again. Grey areas in the proposed Competition Bill must be reviewed and clarified before becoming law.
Obvious ambiguities pending clarification include the following :1) Anti-competition law is an entirely new area of law in Hong Kong and many will not be familiar with what actions would be considered as an infringement. The Bill is vague on what actions would contravene the First Conduct Rule. For example, would discussion of the perceived risks in a tender during a social lunch with industry counterparts be considered anti-competitive? Would proclaiming that one does not intend to submit a tender be viewed as a breach? One of the duties of the Commission is to issue guidelines to explain how the rules will be interpreted. As guidelines cannot cover all situations, we would suggest the Commission also has a duty to give advice on specific situations when requested.
QUARTERLY CONSTRUCTION COST REVIEW FIRST QUARTER 2011
The Bill lists two main rules regarding anti-competition : 1) The First Conduct Rule prohibits an agreement, decision or concerted practice that has the object of preventing, restricting or disturbing competition; The Second Conduct Rule controls abuse of market share by companies and enterprises that hold a dominant market position in any industry or sector.
2)
3)
The Competition Bills main objective is to help small consumers block large companies from teaming together to create an oligopoly. However, any legislation can be a double-edged sword. The Bill, as currently drafted, could potentially be used by large companies to block small companies (such as consultancy practices) teaming together to protect themselves from unreasonable employment terms. The draftsman should look at the Bill from different angles and build in the necessary precautions to prevent the Bill being misused after enactment, and not leave it to the Commission to sort out problems later when it is likely too late.
HK$/m2 CFA
Outline Specification 1. Public rental housing based on Hong Kong Housing Authority Non-standard Cruciform Block design 2. Private housing estates with 2 or more towers, 30-50 storeys high, with average unit size not greater than 100m2. Single glazed windows. Tiled or plastered finishes - in general. Average quality built-in furniture and fittings. 3. Private luxury apartments with unit average size greater than 100m2. Provisions generally of high quality. Premium grade stone finishes/fittings. 4. Private housing, apartments and houses equipped with air-conditioning, kitchen cabinets and home appliances, but excluding decorations and loose furniture.
1. Offices based on buildings 20 - 30 storeys high with floor plans minimum 1,000m2 per level. 2. Shopping centres and average standard offices exclude finishes, A/C ducting & light fittings to tenant areas. 3. Prestige offices are fitted with raised floor, suspended ceiling, A/C ducting and light fittings to tenant areas.
INDUSTRIAL Light duty flatted factories, high rise, 7.5kpa (150 lb.) loading
Heavy duty flatted factories &
1. Flatted factories and industrial-office buildings exclude manufacturing equipment, special services provisions, air-conditioning and electrical distribution system to tenant areas.
10,800 - 13,450
HOTEL
3-Star hotels, inclusive of F.F.&E 5-Star hotels, inclusive of F.F.&E
1. F.F.&E. includes interior decoration and loose furniture etc. but excludes preopening expenses and hotel operation system & equipment costs (e.g. cutlery, crockery, linen, uniform, etc.). 2. Buildings include 1 level of basement.
OTHERS
Carparks, above ground Primary and secondary schools International schools
1. Carparks to be multi-storey, open sided. 2. Primary and secondary schools are allowed with standard government provisions. 3. Schools include external works but exclude F.F.&E.
Notes:
1. 2. 3.
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. 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. All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site condition. The cost excludes site formation works, external works, land cost, professional fees, finance and legal expenses.
Index 1,600
ASD BWTPI ASD BWTPI (as at the 4th Quarter) DLS TPI DLS TPI (as at the 4th Quarter)
1,400
1,200
1,000
800
600
400
200
0 '70 '74 Year '78 '82 '86 '90 '94 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ASD TPI (Base = 100, at Year 1970) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Source: Notes:
Competitive tenders received by Davis Langdon & Seah Hong Kong and the ASD Building Works Tender Price Index (BWTPI). 1. 2. The index measures the trend of general builders works only. Special works and Mechanical and Electrical Services would have to be considered separately. All indices were published quarterly. For reference purpose, only indices from 1st quarter of 1998 and onwards are given in detail on the above graph, whereas indices for the years 1970 - 1997 are shown with their 4th Quarter figures.
'96 Year
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
Year Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Index
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Selected Trade General Workers Concretor Bar Bender and Fixer Carpenter (formwork) Plumber Plasterer Painter and Decorator Electrical Fitter (incl. Electrician) Bricklayer Drainlayer Metal Worker Joiner Construction Plant Mechanic Glazier Bamboo Scaffolder Structural Steel Erector Asphalter (road construction) Mechanical Fitter
Source : Note : Census & Statistics Department
Average Daily Wage (HK$) Aug 10 585 934 1,149 983 883 881 830 697 879 853 797 916 765 830 1,089 1,034 672 635 Sep 10 588 926 1,144 983 892 887 830 697 875 862 816 925 769 871 1,079 1,009 695 627 Oct 10 591 927 1,155 986 892 886 814 695 850 864 806 925 771 890 1,109 1,016 693 612 Nov 10 598 935 1,161 994 889 888 830 686 865 872 826 914 792 956 1,090 1,028 706 614 Dec 10 599 926 1,167 997 886 891 813 697 861 876 829 916 797 908 1,072 1,017 705 623 Jan 11 602 929 1,175 1,007 882 890 792 694 865 887 841 909 793 894 1,094 1,029 695 609
The labour indices cover public sector construction projects only and reflect the change in wage cost borne by main contractors of public sector construction projects. Owing to the special arrangements widely adopted in the construction industry, the wage cost data probably also includes elements like service charges and administration overheads borne to ensure that tasks are handled by the workers/ companies with the appropriate skills. Hence, the labour indices may not reflect the wage received by workers in the construction industry.
Index 400
Portland cement (ordinary) Steel reinforcement GMS pipes Sand Timber formw ork
300
200
100
0 '96 Year
Average Material Price (HK$) Aug 10 6,116 5,877 619
3 2 2
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
Selected Material Mild Steel Round Bars (6mm-20mm) High Tensile Steel Bars (10mm-40mm) Portland Cement Hardwood Plywood (19mm thick) Concrete Blocks (100mm thick) Aggregates (All grades) Sand Galvanised Mild Steel Angles Homogeneous non-slip floor tiles (200 x 200mm) UPVC Pipes (32mm x 4m long) Clear Sheet Glass (5mm) Emulsion Paint
Source : Census & Statistics Department
Unit t t t m m m t t t m2 No. m
2
litre
1,000
800
600
400
200
0 '96 '97 Year '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Area w ith consent to commence Area w ith consent to commence - Major revision
Period Quarter Usable Floor Area 1st Quarter (Q1) 2nd Quarter (Q2) 3rd Quarter (Q3) 4th Quarter (Q4) First submission Major revision First submission Major revision First submission Major revision First submission Major revision
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total usable floor area completed (000m2) 275 351 312 417 318 378 678 586 253 425 454 455 291 194 142 201 376 72 338 69 324 451# 590 356 431 69 187 81 136* 58* 100 53 292 388 259 288 195 88 255 141 165 86 290 257 232 322 333 502 52 168 120 129 317 173 249 191 225 271 126 407 130 129 355 107 301 218 205 94 183 162 370 382 275 124 258 78 144 3 78 38 215 149 250 201 148 92 198 21 263 43 253 58 496 141 299 204 243 48 232 38 288 183 109 58
Total usable floor area with consent to commence (000m2) Q1 Q2 Q3 Q4 493 355 170 370 229 418 368 356
Source : Census and Statistics Department and Buildings Department Notes: 1. 2. 3. As from January, 2003 onwards, statistics by Buildings Department on "Consent to Commence" are published with 2 sub-divisions viz "First Submission" and "Major Revision". The 2 sub-divisions are added together to compare with past data. Figures marked with " * " have been revised as per Hong Kong Monthly Digest of Statistics, June Edition. Figures marked with " # " includes units of the Hunghom Peninsula, which were converted from Private Sector Participation Scheme to private buildings (Total 81,900m2), as per Hong Kong Monthly Digest of Statistics, June Edition.
QUARTERLY
30,000
25,000
20,000
15,000
10,000
5,000
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Year
Quarter Value Performed (HK$ Million) 2001
8,898 9,572 9,836 12,191 40,497 11,619 10,347 9,394 10,433 41,793 8,132 7,798 7,850 7,917 31,697 113,987
2002
9,900 11,143 10,769 10,480 42,292 9,007 8,464 7,191 7,408 32,070 7,981 7,809 7,780 8,068 31,638 106,000
2003
9,259 9,065 8,766 8,097 35,187 7,662 9,061 8,090 7,564 32,377 7,854 7,555 7,970 8,088 31,467 99,031
2004
6,892 6,911 6,840 7,377 28,020 7,569 7,256 6,890 6,818 28,533 8,607 8,744 9,432 9,835 36,618 93,171
2005
6,725 6,421 6,524 6,685 26,355 6,924 5,895 4,951 4,565 22,335 9,579 10,027 11,137 11,417 42,160 90,850
2006
6,051 6,161 6,016 6,627 24,855 4,693 3,998 3,918 4,526 17,135 11,229 12,305 12,368 12,338 48,240 90,230
2007
6,959 7,429 6,582 8,004 28,974 4,293 3,575 3,105 3,530 14,503 10,995 11,979 13,057 13,358 49,389 92,866
2008
8,382 8,122 7,688 9,303 33,495 3,819 3,762 3,653 4,105 15,339 11,883 13,213 12,818 12,851 50,765 99,599
2009
8,600 9,055 8,408 7,543 33,606 3,967 4,652 4,428 5,605 18,652 11,750 12,415 11,969 12,552 48,686 100,944
2010
6,349 9,276 7,360 7,211* 30,196* 6,511 6,937 8,651 8,680* 30,779* 11,926 12,109 12,620 13,310* 49,965* 110,940
USD/m2 CFA
Macau
Shanghai
Beijing
Guangzhou/ Shenzhen
Seoul
Tokyo
high rise
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 & warehouses, high rise, 15kpa (300lb.) loading Single storey conventional factory with structural steel roof
1,105
1,185
N/A
N/A
N/A
N/A
1,500
1,210
N/A
N/A
N/A
N/A
N/A
1,980
N/A
N/A
525
529
488
703
1,720
HOTEL
Resort hotels, inclusive of F.F.&E 3-Star hotels, inclusive of F.F.&E 5-Star hotels, inclusive of F.F.&E
OTHERS
960 HK$7.8
627 MOP7.99
378 RMB6.56
406 RMB6.56
335 RMB6.56
569 KRW1,119
1,630 JPY81.40
Notes:
1. 2. 3. 4. 5.
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. 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. All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site condition. 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.
USD/m2 CFA
Singapore
Bangkok
Jakarta
Brunei
Manila
Average standard apartments, high rise Luxury apartments, high rise Terraced houses Luxury houses
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 & warehouses, high rise, 15kpa (300lb.) loading Single storey conventional factory with structural steel roof Resort hotels, inclusive of F.F.&E 3-Star hotels, inclusive of F.F.&E 5-Star hotels, inclusive of F.F.&E
1,095
447
599
N/A
465
422
1,330
531
N/A
N/A
N/A
470
940
442
599
250
425
405
HOTEL
OTHERS
745 S$1.28
291 RM3.05
349 BHT30.06
250 IDR8,825
475 B$1.28
435 PHP43.77
Notes:
1. 2. 3. 4. 5.
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. 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. All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil and site condition. 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.
10
1.
2. 3.
4.
United States of America: Boston, Chicago, Denver, Honolulu, Los Angeles, New York, Philadelphia, Sacramento, San Francisco, Seattle, Washington DC Mexico: Mexico City England: London, Birmingham, Bristol, Cambridge, Heathrow, Leeds, Liverpool, Maidstone, Manchester, Norwich, Oxford, Peterborough, Plymouth, Southampton Scotland: Edinburgh, Glasgow Wales: Cardiff Northern Ireland: Belfast Republic of Ireland: Cork, Dublin, Galway, Limerick
Netherlands: Amsterdam Germany: Munich France: Paris Spain: Madrid Italy: Milan Turkey: Istanbul Libya: Tripoli Egypt: Cairo Nigeria: Lagos South Africa: Bloemfontein, Cape Town, Durban, George, Johannesburg, Klerksdorp, Nelspruit, Pietermaritzburg, Port Elizabeth, Port Shepstone, Pretoria, Richards Bay, Stellenbosch, Vanderbijlpark 15. Botswana: Gaborone
Mozambique: Maputo Lebanon: Beirut Saudi Arabia: Riyadh Bahrain: Manama Qatar: Doha UAE: Abu Dhabi, Dubai Pakistan: Karachi India: Bangalore, Chennai, Delhi, Hyderabad, Mumbai 24. Thailand: Bangkok 25. China: Hong Kong, Beijing, Chengdu, Chongqing, Dalian, Foshan, Guangzhou, Hangzhou, Macau, Sanya, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuhan 26. Korea: Seoul
27. Japan: Tokyo 28. Malaysia: Selangor, Johor, Penang, Sabah, Sarawak 29. Vietnam: Hanoi, Ho Chi Minh City 30. Philippines: Manila 31. Singapore 32. Indonesia: Bali, Jakarta, Surabaya 33. Brunei: Bandar Seri Begawan, Kuala Belait 34. Australia: Adelaide, Brisbane, Caims, Canberra, Darwin, Hobart, Melbourne, Perth, Sydney, Townsville 35. New Zealand: Auckland, Christchurch, Wellington
CONTACT US DAVIS LANGDON & SEAH HONG KONG LTD. 38/F, Two Landmark East, 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong T (852) 2830 3500 F (852) 2576 0416 dlshk@dlshk.com
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