HONG KONG REPORT - RLB

1 hong kong . REPORT . QUARTERLY CONSTRUCTION. COST UPDATE. JUNE 2016. OFFICES AROUND THE WORLD. AUSTRALIA MIDDLE EAST CHINA CANADA. Adelaide Abu Dhabi Beijing Calgary Brisbane Doha Chengdu Toronto Cairns Dubai Chongqing Canberra Muscat Dalian CARIBBEAN. Darwin Riyadh Guangzhou Bahamas Gold Coast Guiyang Barbados Melbourne AFRICA Haikou Grand Cayman Newcastle RLB Pentad Hangzhou St. Lucia Northern NSW Gaborone (Botswana) hong kong Johannesburg (South Africa) USA. Perth Macau Port Louis (Mauritius) Austin, TX. Sunshine Coast Nanjing Maputo (Mozambique) Boston, MA. Sydney Qingdao Pretoria (South Africa) Chicago, IL.

2 Townsville Shanghai Cape Town (South Africa) Denver, CO. Shenyang NEW ZEALAND Guam, GU. Shenzhen Auckland UK Hilo, HI. Tianjin Christchurch Birchwood/Warrington Honolulu, HI. Wuhan Hamilton Birmingham Kennewick, WA. Wuxi Palmerston North Bristol Las Vegas, NV. Xiamen Queenstown Cumbria Los Angeles, CA. Xian Tauranga Glasgow Maui, HI. Zhuhai Wellington London New York, NY. Manchester INDIA Orlando, FL. Sheffield Mumbai Phoenix, AZ. Welwyn Garden City Portland, OR. Wokingham INDONESIA San Francisco, CA. Jakarta Seattle, WA. EUROPE Tucson, AZ. RLB|EuroAlliance JAPAN Waikoloa, HI. Austria Tokyo Washington, DC. Belgium Czech Republic MALAYSIA.

3 Finland Kuala Lumpur France PHILIPPINES. Germany Cebu Greece Davao Hungary Manila Ireland Italy SINGAPORE. Luxembourg Singapore Netherlands Norway SOUTH KOREA. Poland Jeju Portugal Seoul Russia Serbia THAILAND. Spain Bangkok Sweden VIETNAM. Turkey Ho Chi Minh City Rider Levett Bucknall Smartphone App Download free of charge at your app store by searching RLB or Rider Levett Bucknall Available on iPhone, Android, Windows Phone 7 and Blackberry Operating Systems. COST REVIEW OF TENDER. COMMENTARY PRICE MOVEMENTS IN. hong kong . According to Rider Levett Bucknall's expenditure in capital works Tender Price Index, which measures including housing, hospitals and tender price movements of builder's infrastructure in the coming years works in the private sector in hong will unlikely be less than that in the kong , the tender prices remain past few years.

4 Therefore, a steady in the first quarter of 2016. substantial decline in tender prices On a year-on-year basis, the in the coming months is unlikely and increase was it is forecast that tender prices will move moderately within a narrow The following are the first quarter range in the second half of 2016. year-on-year tender price movements of builder's works in the private sector in the past five years: Macau According to the Statistics and Census Service of the Macau 2011 - 2012 2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016. government, Gross Domestic + + + + + Product for the first quarter of 2016. decreased by year-on-year in real terms.

5 The unemployment rate hong kong 's economic growth for February 2016 to April 2016. continued to slow down and only stood at , same as that in grew moderately by year-on- January to March 2016. The average year in real terms in the first quarter daily wage of construction workers of 2016, compared with the was MOP779 in the first quarter of increase in the fourth quarter of 2016, decreased by on a 2015. On a seasonally adjusted quarter-to-quarter basis. The quarter-to-quarter comparison average daily wages of skilled and basis, real GDP decreased by semi-skilled workers decreased by in the first quarter of 2016 over the to MOP787 and that of fourth quarter of 2015.

6 According unskilled workers decreased by to the Composite Consumer Price to MOP392. Index, overall consumer prices rose by in May 2016 over the same The construction industry in Macau month a year earlier, lower than the has been relying heavily on the corresponding increase ( ) in development of major gaming April 2016. The seasonally adjusted resorts in the past ten years. With unemployment rate and the rapid decrease in gaming underemployment rate stood at revenues, future investment in the and respectively in construction of gaming resorts and February 2016 to April 2016, same hotels has almost stopped. Macau's as those in January to March 2016.

7 Construction works will be transformed from the gaming sector The rising trend of tender prices in to non-gaming sectors such as hong kong since 2009 has come to infrastructure and social projects. an end. The overall increase in With less construction activities in tender prices from the first quarter the coming months, it is expected of 2009 to the first quarter of 2016 that tender prices in Macau will was about 57%. With a slowdown in continue to fall gradually towards the local economy and the gradual the end of this year. completion of major infrastructure works in recent months, hong Disclaimer: kong 's construction industry is now Mainland China While the information in this publication is facing some uncertainties ahead, believed to be correct at the time of publishing, resulting in competitive bidding by Please refer to our China REPORT no responsibility is accepted for its accuracy.

8 Some contractors in a number of which can be downloaded from our Persons desiring to utilize any information website appearing in the publication should verify its projects in the public and private applicability to their specific circumstances. sectors. However, the government Cost information in this publication is indicative is still maintaining its land sale and for general guidance only and is based on programme and developers have rates at 1st Quarter 2016. not refrained from bidding for land. The government's planned annual 1. hong kong JUNE 2016. REPORT . TENDER PRICE. INDICES IN RLB = Rider Levett Bucknall (Private Sector).

9 hong kong ASD = Architectural Services Department (Public Sector). 2600 2600. 2400 2400. 2200 2200. 2000 2000. 1800 1800. RLB. 1600 1600. 1400 1400. 1200 1200. 1000 1000. ASD. 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. 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. 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.

10 Quarter 1968 1969 1970 1971 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. 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.