HONG KONG REPORT

1 DECEMBER 2021. HONG KONG. REPORT . QUARTERLY CONSTRUCTION. COST UPDATE. OFFICES AROUND THE WORLD. AFRICA South Asia EUROPE OCEANIA. Bacolod Angola United Kingdom Australia Bohol Luanda Belfast Adelaide Cagayan de Oro Birmingham Brisbane Botswana Cebu Bristol Cairns Gaborone Clark Cardiff Canberra Kenya Davao Cumbria Coffs Harbour Nairobi Ho Chi Minh City Leeds Darwin Iloilo Maldives Liverpool Gold Coast Jakarta Hulhumale London Melbourne Kuala Lumpur Manchester Newcastle Mauritius Laguna Sheffield Perth Quatre Bornes Metro Manila Thames Valley Sunshine Coast Phnom Penh Mozambique Warrington Sydney Subic Maputo Townsville Singapore RLB | Euro Alliance Namibia Yangon Austria New Zealand Windhoek Belgium Auckland India Alliance Bulgaria Christchurch Nigeria Bangalore Croatia Hamilton Lagos Czech Republic Palmerston North Seychelles AMERICAS Denmark Queenstown Victoria France Tauranga Caribbean South Africa Germany Wellington St. Lucia Cape Town Greece North America Hungary Durban Boston Ireland Pretoria Calgary Italy Stellenbosch Chicago Luxembourg Denver Montenegro ASIA Hilo Netherlands North Asia Honolulu Norway Beijing Kansas City Poland Chengdu Las Vegas Portugal Chongqing Los Angeles Romania Guangzhou Maui Russia Guiyang Mexico City Serbia Haikou New York Spain Hangzhou Phoenix Sweden Hong Kong Portland Turkey Macau San Francisco Nanjing San Jose MIDDLE EAST.

2 Nanning Seattle Seoul Toronto Qatar Shanghai Tucson Doha Waikoloa Shenyang Saudi Arabia Shenzhen Washington DC. Riyadh Tianjin United Arab Emirates Wuhan Abu Dhabi Wuxi Dubai Xian Zhuhai COST REVIEW OF TENDER. COMMENTARY PRICE MOVEMENTS IN. HONG KONG. According to Rider Levett Bucknall's developments are in early stage with Tender Price Index, which measures some site formation and infrastructure tender price movements of builder's under planning or construction. works in the private sector in Hong Gradual development of these new Kong, there was an increase of areas will provide positive support to in tender prices in the third quarter the construction market in the near of 2021. On a year-on-year basis, the future. In 2021, increasing public and tender price increased by subsidized housing supply remains the Government's top priority. More than The following are the third quarter five construction sites were granted year-on-year tender price movements through Private Treaty Grant for public of builder's works in the private housing development this year, which sector in the past five years: will create great opportunities for the construction market.

3 With increasing 2016 - 2017 2017 - 2018 2018 - 2019 2019 - 2020 2020 - 2021 demand, it is expected that the tender prices will remain on an upward trend in coming quarters. Hong Kong's economy grew by MACAU. year-on-year in real terms in the third Macau's Gross Domestic Product quarter of 2021, compared with the rose by year-on-year in real increase in the second quarter terms in the third quarter of 2021, of 2021. On a seasonally adjusted compared with the increase quarter-to-quarter comparison in the previous quarter. Soaring basis, real GDP increased by in exports of gaming services and the third quarter of 2021 over the tourism services greatly contributed previous quarter. According to the to Macau's economic recovery. The Composite Consumer Price Index, general unemployment rate for overall consumer prices rose by August - October 2021 dropped in October 2021 over the same slightly from to compared month a year earlier, following a with that in July - September 2021.

4 Y-o-y increase of in September and the underemployment rate 2021. From July September 2021 increased from to to August October 2021, the Macau's construction investment is seasonally adjusted unemployment shrinking and relies heavily on public rate decreased from to investment. With completion of new and underemployment rate also Qingmao border passenger terminal dropped from to building and works in Canal dos In the third quarter of 2021, Hong Patos, there was a decline in Kong's economy saw further public construction investment. The improvement with continual growth Government had planned to expedite of exports of goods and services. the developments on reclaimed area Investment expenditure on building of 3,500,000m2, public housing and construction grew by projects and increase investments year-on-year. Gross Floor Area in transport infrastructure, such as contributed by private land sale Macau Light Rapid Transit East Line Disclaimer: and commencement of new private and Extension for Hengqin Line, sub- While the information in this publication building or superstructure works sea tunnel connection between newly is believed to be correct at the time of also rose moderately in the third reclaimed areas and Macao-Taipa publishing, no responsibility is accepted for quarter.

5 In the 2021 Policy Address, cross-harbor route. While the impact its accuracy. Persons desiring to utilize any the Chief Executive announced the of the pandemic on the economy will information appearing in the publication should verify its applicability to their strategic plan to develop the Northern not be completely reduced in the near specific circumstances. Cost information in Metropolis with a total land area of future and before full implementation this publication is indicative and for general 300 square kilometres, covering of these projects, it is forecast that guidance only and is based on rates at Yuen Long District and North District. tender prices in Macau will remain 3rd Quarter 2021. Currently, the majority of the new town weak in coming quarters. 1. HONG KONG DECEMBER 2021. REPORT . TENDER PRICE. INDICES IN RLB = Rider Levett Bucknall (Private Sector). HONG KONG ASD = Architectural Services Department (Public Sector). 2600 2600. 2400 2400. 2200 2200. 2000 2000.

6 1800 1800. RLB. 1600 1600. 1400 1400. 1200 1200. ASD. 1000 1000. 800 800. 600 600. 400 400. 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3. 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21. Quarter / Year Graph showing cost trends in the construction industry in Hong Kong based on Tender Prices for Builder's Works TENDER PRICE. INDICES. RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD RLB ASD. Quarter 1968 1969 1970 1970 1972 1973 1974 1975 1976 1977 1978 1979. 1 104 160 100 210 140 238 144 258 160 345 206 275 145 221 150 270 164 320 203 460 262. 2 112 173 106 222 143 236 146 275 167 345 213 258 145 238 153 270 174 350 208 500 285. 3 130 185 124 230 144 238 158 300 190 318 203 243 137 255 153 273 185 380 230 535 304. 4 100 148 198 131 238 143 245 158 325 199 290 191 228 140 263 149 300 201 420 238 550 329. 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991.

7 1 570 347 620 389 630 364 560 298 570 328 560 326 605 376 665 385 785 479 960 542 1020 574 1090 608. 2 570 353 620 393 620 370 560 298 570 332 555 335 615 392 690 403 820 510 960 548 1030 561 1075 592. 3 600 369 630 375 600 342 540 317 570 323 565 344 630 373 700 411 865 521 985 552 1045 582 1075 573. 4 610 381 630 376 580 327 560 326 560 337 585 351 655 380 740 438 925 541 1000 559 1080 596 1055 515. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003. 1 1035 531 1025 527 1100 586 1280 708 1400 772 1575 902 1800 1103 1660 1024 1510 959 1400 862 1270 687 1205 720. 2 1020 548 1045 527 1125 594 1330 712 1430 813 1660 953 1765 1054 1640 1031 1440 873 1390 842 1240 742 1230 723. 3 1020 519 1075 541 1160 615 1360 733 1485 848 1760 996 1695 1065 1620 1025 1435 858 1360 807 1210 692 1195 722. 4 1030 518 1080 563 1220 666 1370 747 1520 885 1810 1051 1675 1034 1600 989 1410 844 1290 721 1185 733 1210 681. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015. 1 1255 685 1260 711 1300 714 1440 821 1680 1118 1630 1074 1670 1134 1840 1273 1995 1414 2145 1516 2360 1621 2510 1732.

8 2 1265 712 1270 716 1310 730 1475 859 1810 1305 1605 983 1730 1161 1870 1320 2045 1438 2190 1532 2390 1648 2540 1761. 3 1230 704 1275 718 1360 751 1535 906 1865 1401 1620 1111 1750 1249 1925 1369 2075 1467 2230 1559 2425 1679 2545 1777. 4 1220 701 1280 697 1410 789 1595 998 1750 1262 1655 1107 1785 1266 1955 1408 2100 1496 2290 1590 2460 1703 2565 1775. 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027. 1 2565 1775 2580 1779 2530 1755 2395 1695 2300 1641 2285 1631. 2 2570 1776 2555 1776 2495 1727 2385 1686 2265 1623 2300 1620. 3 2580 1783 2565 1773 2465 1708 2355 1675 2260 1618 2345. 4 2580 1781 2560 1768 2440 1698 2340 1652 2250 1625. 2. COMMON UNIT. RATES IN. HONG KONG. Average Rates in HK$. Description Unit 4Q2020 1Q2021 2Q2021 3Q2021. Reinforced concrete Grade 40 m3 1, 1, 1, 1, Sawn formwork m2 Deformed high yield steel bar reinforcement kg 105 mm Solid concrete block wall m2 Mastic asphalt roofing overall 20 mm thick (2-coat work). m2 on horizontal surfaces 20 mm (Finished) Timber strip flooring including m2 plywood sub-floor, sanding and wax polishing Timber skirting 100 mm high x 13 mm thick m 50 mm Solid core flush door faced both sides with 5 mm timber veneered plywood including door frame, architrave, No.

9 5, 6, 6, 6, mouldings and painting (excluding ironmongery). Galvanised mild steel in balustrades, railings and general kg welded and framed work Structural steelwork - standard sections kg Fluorocarbon coated aluminium windows - frame and hardware m2 2, 2, 2, 2, including clear float glass and glazing (single-glazed windows). 20 mm Cement and sand (1:3) paving m2 Coloured unglazed ceramic mosaic floor tiling m2 Marble slab flooring (mid-range, European origin) m2 2, 2, 2, 2, Two coats internal lime cement plaster to soffit and beams m2 Metal panel suspended ceiling m 2. Ceramic / homogeneous wall tiling; internal work m 2. Ceramic mosaic external wall tiling; adhesive fixed m2 (45 x 45 or 45 x 95 mm tiles). Alkali resistant primer and two coats of emulsion paint on m2 plastered walls and ceilings Notes: - The unit rates above are for general guidelines of likely tendered rates obtained by competitive tendering for lump sum fixed price contracts with a normal contract period.

10 - The rates are also based on normal site conditions, locations and normal working hours. 3. HONG KONG DECEMBER 2021. REPORT . 2 02 1 3 . Approximate Order of Construction Costs in Hong Kong and Selected Cities in China (Cost per Square Metre Construction Floor Area at 3rd Quarter 2021 Prices).. Hong Kong Macau Beijing Chengdu Guangzhou Shanghai Shenzhen Tianjin Wuhan Wuxi Xian Zhuhai Type of Building HK$ MOP RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB. Office . High Quality 23,500 - 32,600+ 17,700 - 23,600+ 9,100 - 13,300 7,800 - 11,300 8,200 - 12,500 8,600 - 12,900 8,200 - 12,400 8,300 - 12,800 7,900 - 11,800 8,500 - 13,000 7,900 - 11,800 7,900 - 11,800. Medium Quality 20,000 - 23,900 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A. Ordinary Quality 17,200 - 21,300 11,100 - 15,400 4,550 - 6,200 4,100 - 5,500 4,300 - 5,800 4,450 - 5,900 4,300 - 5,800 4,300 - 5,800 4,100 - 5,500 4,400 - 6,000 4,050 - 5,450 4,050 - 5,500. Shopping Centre . High Quality 28,800 - 34,700+ 22,700 - 27,700+ 9,000 - 14,000 8,100 - 12,500 8,700 - 13,300 8,900 - 13,700 8,700 - 13,300 N/A N/A N/A N/A N/A.