singapore cost handbook 2014
DESCRIPTION
CostTRANSCRIPT
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Construction Cost Handbook
SINGAPORE 2014
Langdon & Seah Singapore Pte Ltd
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Langdon & Seah Singapore Pte Ltd would like to acknowledge the following projects featured on our cover page:
1. South Beach South Beach Consortium Pte Ltd (Project photograph in the Courtesy of South Beach Consortium Pte Ltd)
2. CapitaGreen CapitaLand, CapitaCommercial Trust and Mitsubishi Estate Asia (Project photograph in the Courtesy of CapitaLand, CapitaCommercial Trust and Mitsubishi Estate Asia)
3. The Reflections Keppel Land (Project photograph in the Courtesy of Keppel)
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3Twentieth Edition 2014
C Langdon & Seah Singapore Pte Ltd
Business Registration No: 199508550H
All rights reserved. No part of this publication may be reproduced, copied, stored or transmitted in any form without prior written permission from Langdon & Seah Singapore Pte Ltd.
The information contained herein should be regarded as indicative and for general guidance only. Langdon & Seah Singapore Pte Ltd makes no representation, expressed or implied, with regard to the accuracyof the information herein and cannot accept any responsibility or liability for any errors or omissions that may be made.
Unless otherwise stated, costs reflected in this handbook are current as at 4th Quarter 2013.
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TABLE OF CONTENTS
TABLE OF CONTENTS
Page No.
Table of Contents 4Introduction 7Calendars 8
1. CONSTRUCTION TRENDS
Construction Outlook 14Construction Cost Trends a. Tender Price Indices 20 b. Material Price Indices 22 c. Tender Price, Material, Labour 24 And Consumer Price Indices d. Budget 2014: A Commentary on 26 Productivity
2. CONSTRUCTION COST DATA
Preambles 30Construction Costs For: a. Singapore 32 b. Selected Asian Cities 34Construction Cost Specification 40Cost Breakdown For Different Building Types 44Major Rates For Selected Asian Cities 46M&E Costs For: a. Singapore 52 b. Selected Asian Cities 54Office M&E Cost Components 60M&E Cost Charts 62Utility Costs For Selected Asian Cities 66
3. CONTRACT PROCUREMENTContract Procurement 70
4. OTHER INFORMATION
Exchange Rates 88Prime Rates 89Currency Fluctuations 90Conversion Factors 92IDD Codes & Time Differences 94Relevant Websites 96Current Construction Regulations 100
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Page No.
5. LANGDON & SEAH
L&S Culture 180Professional Services 191L&S Contract Advisory & Dispute 193 Management ServicesLangdon & Seah Consultancy 197Directory of Offices 204Acknowledgements 218
MCI (P) 009/12/2013Published by Langdon & Seah Singapore Pte Ltd
Printed by Detroit D
TABLE OF CONTENTS 5
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6
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7INTRODUCTION
Langdon & Seah (L&S) has been involved in thepublication of construction costs handbooks for countries such as China and Hong Kong, India, Korea, Malaysia, Philippines, Thailand and Vietnam and is also the editor of the Spons Asia Pacific Construction Costs Handbook.
As in the previous editions, the L&S Handbook -Singapore 2014 focuses on the construction cost profile of Singapore and those of the major cities in Asia.
The handbook is structured to serve as a general reference guide on construction cost indicators in Asia.
The information contained in this handbook has been compiled by Langdon & Seah Singapore Pte Ltd. Any further information and/or if advice relating to particular projects is required, please contact any of the regional offices listed under the Directory of Offices at the end of this handbook.
Langdon & Seah Singapore Pte Ltd
INTRODUCTION
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CALENDARS
CALENDARS8
2013January February
March April
May June
July August
September October
November December
Week No. 1 2 3 4 5 5 6 7 8 9Monday 7 14 21 28 4 11 18 25 Tuesday 1 8 15 22 29 5 12 19 26Wednesday 2 9 16 23 30 6 13 20 27 Thursday 3 10 17 24 31 7 14 21 28Friday 4 11 18 25 1 8 15 22 Saturday 5 12 19 26 2 9 16 23 Sunday 6 13 20 27 3 10 17 24
Week No. 9 10 11 12 13 14 15 16 17 18Monday 4 11 18 25 1 8 15 22 29Tuesday 5 12 19 26 2 9 16 23 30Wednesday 6 13 20 27 3 10 17 24 Thursday 7 14 21 28 4 11 18 25 Friday 1 8 15 22 29 5 12 19 26 Saturday 2 9 16 23 30 6 13 20 27 Sunday 3 10 17 24 31 7 14 21 28
Week No. 18 19 20 21 22 22 23 24 25 26Monday 6 13 20 27 3 10 17 24Tuesday 7 14 21 28 4 11 18 25 Wednesday 1 8 15 22 29 5 12 19 26 Thursday 2 9 16 23 30 6 13 20 27 Friday 3 10 17 24 31 7 14 21 28 Saturday 4 11 18 25 1 8 15 22 29 Sunday 5 12 19 26 2 9 16 23 30
Week No. 27 28 29 30 31 31 32 33 34 35Monday 1 8 15 22 29 5 12 19 26Tuesday 2 9 16 23 30 6 13 20 27Wednesday 3 10 17 24 31 7 14 21 28 Thursday 4 11 18 25 1 8 15 22 29 Friday 5 12 19 26 2 9 16 23 30Saturday 6 13 20 27 3 10 17 24 31Sunday 7 14 21 28 4 11 18 25
Week No. 35 36 37 38 39 40 40 41 42 43 44 Monday 2 9 16 23 30 7 14 21 28 Tuesday 3 10 17 24 1 8 15 22 29 Wednesday 4 11 18 25 2 9 16 23 30Thursday 5 12 19 26 3 10 17 24 31 Friday 6 13 20 27 4 11 18 25 Saturday 7 14 21 28 5 12 19 26 Sunday 1 8 15 22 29 6 13 20 27
Week No. 44 45 46 47 48 48 49 50 51 52 1/14Monday 4 11 18 25 2 9 16 23 30Tuesday 5 12 19 26 3 10 17 24 31Wednesday 6 13 20 27 4 11 18 25 Thursday 7 14 21 28 5 12 19 26Friday 1 8 15 22 29 6 13 20 27 Saturday 2 9 16 23 30 7 14 21 28 Sunday 3 10 17 24 1 8 15 22 29
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CALENDARS 9
January February
March April
May June
July August
September October
November December
2014 Public Holidays School Holidays
Week No. 1 2 3 4 5 5 6 7 8 9Monday 6 13 20 27 3 10 17 24 Tuesday 7 14 21 28 4 11 18 25Wednesday 1 8 15 22 29 5 12 19 26 Thursday 2 9 16 23 30 6 13 20 27Friday 3 10 17 24 31 7 14 21 28Saturday 4 11 18 25 1 8 15 22 Sunday 5 12 19 26 2 9 16 23
Week No. 9 10 11 12 13 14 14 15 16 17 18 Monday 3 10 17 24 31 7 14 21 28 Tuesday 4 11 18 25 1 8 15 22 29Wednesday 5 12 19 26 2 9 16 23 30Thursday 6 13 20 27 3 10 17 24 Friday 7 14 21 28 4 11 18 25 Saturday 1 8 15 22 29 5 12 19 26 Sunday 2 9 16 23 30 6 13 20 27
Week No. 18 19 20 21 22 22 23 24 25 26 27Monday 5 12 19 26 2 9 16 23 30Tuesday 6 13 20 27 3 10 17 24 Wednesday 7 14 21 28 4 11 18 25 Thursday 1 8 15 22 29 5 12 19 26 Friday 2 9 16 23 30 6 13 20 27 Saturday 3 10 17 24 31 7 14 21 28 Sunday 4 11 18 25 1 8 15 22 29
Week No. 27 28 29 30 31 31 32 33 34 35Monday 7 14 21 28 4 11 18 25Tuesday 1 8 15 22 29 5 12 19 26Wednesday 2 9 16 23 30 6 13 20 27 Thursday 3 10 17 24 31 7 14 21 28 Friday 4 11 18 25 1 8 15 22 29Saturday 5 12 19 26 2 9 16 23 30Sunday 6 13 20 27 3 10 17 24 31
Week No. 36 37 38 39 40 40 41 42 43 44 Monday 1 8 15 22 29 6 13 20 27 Tuesday 2 9 16 23 30 7 14 21 28 Wednesday 3 10 17 24 1 8 15 22 29Thursday 4 11 18 25 2 9 16 23 30Friday 5 12 19 26 3 10 17 24 31Saturday 6 13 20 27 4 11 18 25Sunday 7 14 21 28 5 12 19 26
Week No. 44 45 46 47 48 49 50 51 52 1/15 Monday 3 10 17 24 1 8 15 22 29Tuesday 4 11 18 25 2 9 16 23 30Wednesday 5 12 19 26 3 10 17 24 31Thursday 6 13 20 27 4 11 18 25Friday 7 14 21 28 5 12 19 26Saturday 1 8 15 22 29 6 13 20 27Sunday 2 9 16 23 30 7 14 21 28
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CALENDARS
CALENDARS10
2015January February
March April
May June
July August
September October
November December
Week No. 1 2 3 4 5 5 6 7 8 9Monday 5 12 19 26 2 9 16 23 Tuesday 6 13 20 27 3 10 17 24Wednesday 7 14 21 28 4 11 18 25 Thursday 1 8 15 22 29 5 12 19 26Friday 2 9 16 23 30 6 13 20 27Saturday 3 10 17 24 31 7 14 21 28Sunday 4 11 18 25 1 8 15 22
Week No. 9 10 11 12 13 14 14 15 16 17 18Monday 2 9 16 23 30 6 13 20 27Tuesday 3 10 17 24 31 7 14 21 28Wednesday 4 11 18 25 1 8 15 22 29Thursday 5 12 19 26 2 9 16 23 30 Friday 6 13 20 27 3 10 17 24 Saturday 7 14 21 28 4 11 18 25 Sunday 1 8 15 22 29 5 12 19 26
Week No. 18 19 20 21 22 23 24 25 26 27Monday 4 11 18 25 1 8 15 22 29Tuesday 5 12 19 26 2 9 16 23 30 Wednesday 6 13 20 27 3 10 17 24 Thursday 7 14 21 28 4 11 18 25 Friday 1 8 15 22 29 5 12 19 26 Saturday 2 9 16 23 30 6 13 20 27 Sunday 3 10 17 24 31 7 14 21 28
Week No. 27 28 29 30 31 31 32 33 34 35 36Monday 6 13 20 27 3 10 17 24 31Tuesday 7 14 21 28 4 11 18 25Wednesday 1 8 15 22 29 5 12 19 26 Thursday 2 9 16 23 30 6 13 20 27 Friday 3 10 17 24 31 7 14 21 28Saturday 4 11 18 25 1 8 15 22 29Sunday 5 12 19 26 2 9 16 23 30
Week No. 36 37 38 39 40 40 41 42 43 44 Monday 7 14 21 28 5 12 19 26 Tuesday 1 8 15 22 29 6 13 20 27 Wednesday 2 9 16 23 30 7 14 21 28Thursday 3 10 17 24 1 8 15 22 29 Friday 4 11 18 25 2 9 16 23 30 Saturday 5 12 19 26 3 10 17 24 31Sunday 6 13 20 27 4 11 18 25
Week No. 44 45 46 47 48 49 49 50 51 52 1/16 Monday 2 9 16 23 30 7 14 21 28 Tuesday 3 10 17 24 1 8 15 22 29 Wednesday 4 11 18 25 2 9 16 23 30 Thursday 5 12 19 26 3 10 17 24 31Friday 6 13 20 27 4 11 18 25 Saturday 7 14 21 28 5 12 19 26 Sunday 1 8 15 22 29 6 13 20 27
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Week No. 1 2 3 4 5 6 7 8 9 10Monday 4 11 18 25 1 8 15 22 29 Tuesday 5 12 19 26 2 9 16 23 Wednesday 6 13 20 27 3 10 17 24 Thursday 7 14 21 28 4 11 18 25 Friday 1 8 15 22 29 5 12 19 26 Saturday 2 9 16 23 30 6 13 20 27Sunday 3 10 17 24 31 7 14 21 28
Week No. 10 11 12 13 14 14 15 16 17 18Monday 7 14 21 28 4 11 18 25Tuesday 1 8 15 22 29 5 12 19 26Wednesday 2 9 16 23 30 6 13 20 27Thursday 3 10 17 24 31 7 14 21 28 Friday 4 11 18 25 1 8 15 22 29 Saturday 5 12 19 26 2 9 16 23 30 Sunday 6 13 20 27 3 10 17 24
Week No. 18 19 20 21 22 23 23 24 25 26 27Monday 2 9 16 23 30 6 13 20 27Tuesday 3 10 17 24 31 7 14 21 28 Wednesday 4 11 18 25 1 8 15 22 29 Thursday 5 12 19 26 2 9 16 23 30 Friday 6 13 20 27 3 10 17 24 Saturday 7 14 21 28 4 11 18 25 Sunday 1 8 15 22 29 5 12 19 26
Week No. 27 28 29 30 31 32 33 34 35 36 Monday 4 11 18 25 1 8 15 22 29 Tuesday 5 12 19 26 2 9 16 23 30Wednesday 6 13 20 27 3 10 17 24 31 Thursday 7 14 21 28 4 11 18 25 Friday 1 8 15 22 29 5 12 19 26 Saturday 2 9 16 23 30 6 13 20 27 Sunday 3 10 17 24 31 7 14 21 28
Week No. 36 37 38 39 40 40 41 42 43 44 45Monday 5 12 19 26 3 10 17 24 31Tuesday 6 13 20 27 4 11 18 25 Wednesday 7 14 21 28 5 12 19 26Thursday 1 8 15 22 29 6 13 20 27 Friday 2 9 16 23 30 7 14 21 28 Saturday 3 10 17 24 1 8 15 22 29Sunday 4 11 18 25 2 9 16 23 30
Week No. 45 46 47 48 49 49 50 51 52 1/16 Monday 7 14 21 28 5 12 19 26 Tuesday 1 8 15 22 29 6 13 20 27 Wednesday 2 9 16 23 30 7 14 21 28 Thursday 3 10 17 24 1 8 15 22 29Friday 4 11 18 25 2 9 16 23 30 Saturday 5 12 19 26 3 10 17 24 31Sunday 6 13 20 27 4 11 18 25
CALENDARS 11
January February
March April
May June
July August
September October
November December
2016
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1CONSTRUCTION TRENDS
Construction Outlook
Tender Price Indices
Material Price Indices
Tender Price, Material, Labour AndConsumer Price Indices
Budget 2014: A Commentary onProductivity
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CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
CONSTRUCTION OUTLOOK1
Review of Local Construction Demand in 2013
The total construction demand2 in 2013 rebounded by about 17% to a preliminary estimate of $35.8 billion, reaching a new historical high record. Compared to 2012, the total public sector construction demand in 2013 was higher at $14.8 billion, underpinned by the ramp-up of public housing developments and asignificant increase in civil engineering construction demand. The private sector construction demand continued to stay firm for the fourth consecutive year and reached $21.0 billion in 2013, fuelled by the robust residential construction demand and the variouslarge-scale mixed developments in town area.
The preliminary total construction output3 was estimated to be around $33.3 billion in 2013, about 5% higher than the volume in 2012. On the back of an increased workload, the construction sectors GDP continued one of its longest run of expansion although at a moderated pace of about 5.5% in 2013. Correspondingly, the construction sectors share of economic GDP sustained at about 4% in 2013 amid improved performance in other major economic sectors. Coming off from a high statistical base, the year-on-year construction GDP growth in 2014 is likely to continue to moderate although the level of on-site construction activity will sustain at a strong level.
Construction Demand Outlook in 2014
Based on the Building and Construction Authority (BCA)s latest forecast, total construction demand in 2014 is likely to reach between $31 billion and $38 billion. Public sector demand is expected to strengthen and expand in 2014 to between $19 billion and $22 billion, boosted by strong institutional and civilengineering construction works. On the other hand, the construction demand from the private sector is projected to soften to between $12 billion and $16 billion in 2014 due to anticipated reduction in residential construction demand amid the subdued property market sentiments since the second half of 2013 as a result of the various market cooling measures implemented by theGovernment.
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Residential Construction Demand
Public Housing The total public housing construction demand is projected to moderate to between $5.2 billion and $5.5 billion as Housing and Development Board (HDB)s housing market is showing signs of restoring its demand and supply balance. Beside building of new HDB flats to meet the on-going demand for public housing, various construction contracts totalling about $900 million for improving and rejuvenating the living environment at various HDB precincts are likely to be awarded.
Private HousingThe total private residential construction demand is expected to soften to between $3.7 billion and $5.2 billion in 2014. The less favourable outlook is in view of the current market volatility amid the Governments multi-pronged approaches to stabilise the market, the substantial supply of completed housing units coming on-stream over the next few years as well as the scaling back of new Government land sales for the first half of 2014.
Commercial Construction Demand
Given the significant increase in completed commercial space and hotel rooms as well as the substantial pipeline supply from on-going projects, total commercial construction demand is projected to reduce from $4 billion in 2013 to between $2.5 billion and $3.2 billion in 2014.
Industrial Construction Demand
In view of the growing optimism about the economic recovery in the developed markets, total industrial construction demand is projected to continue to hold up in 2014 to between $4.3 billion and $6.2 billion. The level of public sector industrial construction demand is projected to be higher compared to 2013, due to construction of storage facilities for energy fuel such as the very large floating structures (VLFS) for oil storage and the addition of the fourth liquefied natural gas (LNG) storage tank. Similarly, the private sector is expected to see relatively strong construction demand from the industrial sector, backed by developments with
CONSTRUCTION TRENDS 15
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CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
sophisticated specifications at various business parks and industrial developments at Jurong Island.
Institutional and Other Building Construction Demand Total institutional and other building construction demand is projected to surge from $3.6 billion in 2013 to between $6.4 billion and $7.6 billion in 2014, with slightly more than 70% of these to be contributed by the public sector through projects such as various sizeablehealthcare developments, campus expansion of various Institutes of Higher Learning (IHLs) and MOEs school development and upgrading programme. Similarly, the private sector institutional & other building construction demand is expected to rise in 2014, bolstered by Changi Airport Groups plan to develop Changi Airport Terminal 4 to cater to the continued growth of air traffic and further strengthen Singapores air hub status.
Civil Engineering Construction Demand
Total civil engineering construction demand is anticipated to continue to gain momentum and go up to between $8.9 billion and $10.3 billion in 2014 supported by notable projects such as the remaining construction contracts for Thomson MRT Line, and other major infrastructure works for roads, sewerage and drainage. Private civil engineering construction demand is anticipated to stabilise and sustain at historical annual level, supported by various port/berth facilities and utilities works.
Construction Outlook For 2015-16
For 2015 and 2016, the average construction demand is projected to be between $25 billion and $34 billion4 per annum. Barring any unforeseen circumstances, this projection seems plausible in view of the rich pipeline of housing and mega public infrastructure construction projects planned by the Government to meet the needs of a larger and ageing population. The public sector construction demand is likely to reach between $14 billion and $18 billion a year in 2015 and 2016, with about 60% of the total demand coming from building projects while the remaining 40% from civil engineering projects.
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The high level of contracts awarded since 2011 are expected to continue to translate into firm on-site construction activity at least over the next 1 to 2 years. Based on the latest forecast, total construction output is projected to increase to between $34 billion and $36 billion in 2014, and sustain at between $29 billion and $37 billion per year in 2015 and 2016.
Conclusion
The total construction demand for 2013 rebounded strongly, bolstered by robust public housing construction demand, strong civil engineering construction demand as well as the continued exceptional strong private sector construction demand. The newly awarded projects and the on-going construction of housing and major infrastructure projects will sustain on-site construction activity at current high level in the year ahead.
Looking forward to 2014, the expected stronger public sector construction demand is anticipated to soften the impact of a likely moderation in private sector demand and provide support to maintain the stability of the overall construction demand. Over the medium-term, while the industrys prospect remains positive, it is envisaged that there could be some rebalancing of demand growth driver towards public sector projects given the anticipated significant addition of completed residential units and commercial space from current on-going projects by the private sector over the next few years.
Contributed by:Toh Li Wen Tracy, Manager,
Economics Research Department, Business Development Group,Building and Construction Authority
15 January 2014
1 All currencies stated in this paper are in nominal Singapore dollars unless otherwise stated.
2 Construction demand is measured by total value of construction contracts awarded. All construction demand figures in this paper exclude reclamation projects.
3 Construction output is measured by total value of certified progress payments.
4 Demand forecast beyond the immediate 1 year will be done on a rolling basis to take into account subsequent changes in economic outlook and other pertinent factors.
CONSTRUCTION TRENDS 17
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CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS18
Table 1: Private Sector Contracts Awarded ($billion)
YEAR RESIDENTIAL COMMERCIAL INDUSTRIAL
2014## 3.7-5.2 2.4-3.1 3.5-4.8
Note: # preliminary figure, ## forecast
Table 2: Public Sector Contracts Awarded ($billion)
YEAR RESIDENTIAL COMMERCIAL INDUSTRIAL
2014## 5.2-5.5 0.1-0.1 0.7-1.5
2013# 10.0 3.9 4.6
2012 8.5 2.9 6.1
2011 9.1 4.2
2004 2.6 1.0
2005 2.6 0.9
2006 4.1 2.3
2007 5.6 5.1
2008 6.4 8.3
2009 3.9 1.6
2010 8.7 3.1
5.7
1.0
2.7
5.4
6.8
3.7
1.8
3.7
2013# 6.6 0.1 0.3
2012 3.3 0.1 0.3
2011 6.2 0.05
2004 1.3 0.1
2005 1.1 0.1
2006 1.2 0.1
2007 1.8 0.1
2008 4.7 0.1
2009 2.8 0.1
2010 2.8 0.2
0.5
0.1
0.4
0.1
0.2
0.1
0.2
1.1
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CONSTRUCTION TRENDS 19
INSTITUTIONAL TOTAL BLDG CIVIL ENG* TOTAL
1.7-2.0 11.4-15.0 0.6-1.0 12.0-16.0
Source : BCA as at 9 January 2014; * Without Reclamation
TOTALINSTITUTIONAL TOTAL BLDG CIVIL ENG*
19.0-22.04.7-5.6 10.8-12.7 8.3-9.3
1.1 19.6 1.4 21.0
1.0 18.6 2.7 21.2
0.3 4.9 0.8
0.5 6.8 0.7
0.5 12.3 0.8
0.5 7.8 0.8
2.7 18.2 0.8
0.6 19.6 0.6
0.9 19.3 0.9
0.4 17.9 0.9
5.7
7.5
13.1
8.6
19.0
20.2
20.2
18.8
14.82.5 9.5 5.3
9.53.7 7.4 2.1
4.6
4.0
3.7
13.9
8.6
15.3
15.5
1.1 2.6 2.0
1.4 3.0 1.0
1.2 2.6 1.1
2.6 5.7 8.2
2.3 6.4 2.2
2.4 9.2 6.1
2.9 7.8 7.7
1.5 3.6 2.1 5.7
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CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
TENDER PRICE INDICES
Generally
Tender Price Index (TPI) is used to track the historical trends in the movement of tender price level ofconstruction contracts let out during the respective periods. In addition to reflecting the changes in material and labour costs, TPI also takes into account the elements of competition in the market place and the risk and profit factored in the Contractors bids. Besides being use to establish historical cost trends, TPI also serve as a useful tool to provide an indication of future cost trends.
Indices
Besides Langdon & Seah Tender Price Index (L&STPI), the other established index is the Building andConstruction Authority Tender Price Index (BCA TPI).
BCA TPI provides information on the general movement of tender prices in Singapore construction industry for the three sectors namely Public Residential (HDB flats), Private Non-Landed Residential and Commercial Office whereas L&S TPI gives an indication of tender price movements based on the projects handled by Langdon & Seah Singapore Pte Ltd.
Price Movement
Based on L&S' data, tender prices for 2013 have increased approximately 6% year-on-year (i.e. 4th Quarter 2013 versus 4th Quarter 2012). The increase was mainly due to the increase in earthworks removal cost, Man-Year Entitlement (MYE) cut, increase in foreign worker levies as well as pricing allowance by contractors in anticipation of labour shortages.
According to BCAs preliminary estimate, the total construction demand for 2013 has hit a new recordhigh of S$35.8 billion, surpassed the 2007 peak of S$35.7 billion. Public sector demand accounted forapproximately 41% (i.e. S$14.8 billion) of the total construction project awarded (a 56% increase from S$9.5 billion as compared to 2012) mainly from the award of public housing developments and significant increase in civil engineering works such as the award of the various major Thomson Line contracts. Construction demand for private sector remained strong at S$21 billion, a slight dipped of 1% compared to 2012. Private residential demand remained strong and has increased 15% compared to 2012 to a record high of approximately S$10 billion. For 2014, BCA forecasts the total
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construction demand to be between S$31 and S$38 billion. Of that, the public sector demand is expected to be close to 60% of the total construction demand (between S$19 and S$22 billion), which is likely to come from the stronger institutional and civil engineering construction works. On the other hand, private sector construction demand is projected to soften to between S$12 and S$16 billion due to anticipated reduction in residential construction demand amid the subdued property market sentiments.
Looking ahead, tender prices in 2014 are anticipated to increase moderately, possibly in the range of 3% to 5% per annum.
Note: With effect from the 1st Quarter of 2009, BCA has implemented the new TPI series with Base Year as Year 2005 = 100. The TPI chart shown above has been amended accordingly to reflect the Base Year as Year 2005.
^ L&S TPI is based on 4th Quarter index
CONSTRUCTION TRENDS 21
L&S BCA*
YEAR INDEX INFLATION INDEX INFLATION
1996 112.9 - 107.6 -1997 113.3 0.4% 107.3 -0.3%1998 102.4 -9.7% 100.2 -6.6%1999 91.8 -10.3% 88.9 -11.3%2000 90.4 -1.5% 87.9 -1.1%2001 91.2 0.8% 88.1 0.2%2002 90.6 -0.6% 89.9 2.0%2003 91.4 0.9% 95.6 6.3%2004 96.9 6.0% 98.9 3.5%2005 100.0 3.2% 100.0 1.1%2006 108.0 8.0% 103.2 3.2%2007 131.6 21.9% 122.5 18.7%2008 150.0 14.0% 137.3 12.1%2009 116.8^ -20.0% 115.9 -15.6%2010 120.9^ 3.5% 114.4 -1.3%2011 123.3^ 2.0% 114.1 -0.3%
2013 130.7^ 6.0% 119.7 4.8%2012 123.3^ 0.0% 114.2 0.1%
87.9 88.1
Ten
der
Price
Inde
x (B
ase
Ye
ar
at 2
005)
112.9 113.3
102.4
91.8 90.4 91.2 90.6
91.4 96.9
100.0
108.0
131.6
150.0
116.8^120.9^ 123.3^ 123.3^
130.7^
107.6 107.3
100.2
88.9 89.9
95.6 98.9 100.0 103.2
122.5
137.3
115.9 114.4 114.1 114.2
119.7
80859095
100105110115120125130135140145150155
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
L&S BCA*
Source: *Building and Construction Authority as at 12 February 2014
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CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
MATERIAL PRICE INDICES
22
CE
ME
NT
IN
BU
LK
ST
EE
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AR
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KS
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RA
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LA
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DE
X(B
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19
94
)
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)
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19
94
)
INF
LA
TIO
N$
/m3
12*
102.
1075
.66.
0%82
7.50
141.
1-9
.7%
--
-22
.10
123.
011
.6%
110.
404
108.
942.
2%13
*99
.30
73.6
-2.6
%71
8.80
122.
9-1
3.1%
--
-20
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116.
30-5
.4%
104.
004
102.
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.8%
9613
5.00
100.
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526.
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.1-
240.
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3.0
-20
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115.
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111.
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9.6
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131.
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.0-3
.0%
521.
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.1-1
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227.
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.4-5
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22.1
212
3.1
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106.
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5.5
-3.7
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107.
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522.
8689
.40.
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5.00
79.4
-18.
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80.4
-34.
7%83
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-22.
1%99
74.0
054
.8-3
0.9%
474.
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.1-9
.3%
135.
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.9-2
7.1%
11.3
863
.3-2
1.3%
70.3
669
.4-1
5.6%
0071
.00
52.6
-4.0
%45
8.65
78.4
-3.3
%14
1.00
60.5
4.5%
12.5
569
.810
.3%
71.3
270
.41.
4%01
70.0
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.9-1
.3%
432.
8174
.0-5
.6%
147.
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.14.
3%12
.69
70.6
1.1%
61.4
060
.6-1
3.9%
0267
.00
49.6
-4.4
%44
2.92
75.7
2.3%
149.
0063
.91.
3%12
.65
70.4
-0.3
%55
.41
54.7
-9.7
%03
71.0
052
.66.
0%57
9.62
99.1
30.9
%16
3.00
70.0
9.5%
12.2
568
.2-3
.1%
56.7
556
.02.
4%04
76.7
656
.98.
2%86
3.40
147.
648
.9%
185.
7779
.713
.9%
12.5
769
.92.
5%62
.50
61.7
10.2
%05
85.2
163
.110
.9%
738.
4412
6.2
-14.
5%26
7.86
115.
044
.3%
16.2
990
.729
.8%
72.1
371
.215
.4%
0688
.02
65.2
3.3%
729.
5212
4.7
-1.2
%-
--
16.5
892
.31.
8%73
.88
72.9
2.4%
07*
115.
4085
.531
.1%
1,05
4.60
180.
344
.6%
--
-24
.10
134.
145
.3%
127.
002
125.
3271
.9%
08*
120.
4089
.24.
3%91
3.00
156.
1-1
3.4%
--
-23
.90
133.
0-0
.8%
121.
902
120.
32-4
.0%
09*
93.4
069
.2-2
2.4%
722.
50^^
123.
5^^
-20.
9%-
--
17.1
095
.2-2
8.4%
93.3
0392
.13
-23.
4%10
*89
.00
65.9
-4.8
%86
7.50
148.
320
.1%
--
-23
.40
130.
236
.8%
106.
704
105.
3414
.3%
11*
96.2
071
.38.
2%91
3.40
156.
15.
3%-
--
19.8
011
0.2
-15.
4%10
8.00
410
6.64
1.2%
Sou
rce:
Bui
ldin
g an
d C
onst
ruct
ion
Aut
horit
y as
at 1
3 Fe
brua
ry 2
014
Not
e: ^
From
1st Q
uarte
r 200
6, s
tatis
tics
on b
ricks
hav
e be
en d
isco
ntin
ued.
*Mar
ket p
rices
from
200
7 to
201
3 ar
e ba
sed
on p
rices
as
at th
e m
onth
of D
ecem
ber. ^
^The
mar
ket p
rices
of r
ebar
(with
out
cu
t and
ben
d) fr
om 2
009
onw
ards
are
bas
ed o
n fix
ed s
uppl
y co
ntra
cts
with
con
tract
per
iod
6 m
onth
s or
less
. 1P
rior t
o 20
07, t
he m
arke
t pric
es o
f rea
dy m
ixed
con
cret
e (R
MC
) wer
e fo
r Gra
de
30
. 2Th
e m
arke
t pric
es o
f RM
C w
ere
for G
rade
35.
3 The
mar
ket p
rices
of R
MC
wer
e ba
sed
on n
on-fi
xed
pric
e co
ntra
ct fo
r Gra
de 3
5 P
ump.
4 The
mar
ket p
rices
of R
MC
are
bas
ed o
n co
ntra
cts
w
ith n
on-fi
xed
pric
e, fi
xed
pric
e an
d m
arke
t ret
ail p
rice
for G
rade
40
Pum
p.
-
CONSTRUCTION TRENDS 23
Cem
ent I
n B
ulk
Ste
el B
ars
Bric
ks^
Gra
nite
Rea
dy M
ixed
Con
cret
e1
4080120
160
200
96
97
98
99
00
01
02
03
04
05
06
07
* 08
* 09
* 10
* 11
* 12
* 13
*
-
CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
TENDER PRICE, MATERIAL, LABOUR
24
BC
A T
PI
IND
EX
(BA
SE
2005)
(BA
SE
2005)
(BA
SE
20
05
)(B
AS
E 2
00
5)
INF
LA
TIO
NIN
DE
XIN
DE
XIN
FL
AT
ION
IND
EX
IND
EX
INF
LA
TIO
NIN
DE
XIN
DE
XIN
FL
AT
ION
YE
AR
BC
A B
MP
IB
CA
LC
IC
PI*
114.
20.
1%-
--
--
-11
3.1
125.
14.
6%12
119.
74.
8%-
--
--
-11
5.8
128.
12.
4%13
107.
6-
120.
899
.7-
112.
210
9.3
-84
.993
.9-
96
107.
3-0
.3%
119.
498
.5-1
.2%
111.
210
8.3
-0.9
%86
.695
.82.
0%97
100.
2-6
.6%
115.
995
.6-2
.9%
112.
010
9.1
0.7%
86.4
95.5
-0.3
%98
88.9
-11.
3%11
1.9
92.3
-3.5
%98
.796
.1-1
1.9%
86.4
95.5
0.0%
99
87.9
-1.1
%11
2.4
92.7
0.4%
103.
110
0.4
4.5%
87.6
96.8
1.3%
00
88.1
0.2%
112.
592
.80.
1%10
2.3
99.6
-0.8
%88
.497
.81.
0%01
89.9
2.0%
112.
592
.80.
0%10
4.7
101.
92.
3%88
.197
.4-0
.4%
02
95.6
6.3%
113.
693
.71.
0%10
4.9
102.
10.
2%88
.597
.90.
5%03
98.9
3.5%
117.
997
.33.
8%10
4.6
101.
9-0
.2%
90.0
99.5
1.7%
04
100.
01.
1%12
1.2
100.
02.
8%10
2.7
100.
0-1
.9%
90.4
100.
00.
5%05
103.
23.
2%-
--
--
-91
.310
1.0
1.0%
06
122.
518
.7%
--
--
--
93.2
103.
12.
1%07
137.
312
.1%
--
--
--
99.4
109.
96.
6%08
115.
9-1
5.6%
--
--
--
100.
011
0.6
0.6%
09
114.
4-1
.3%
--
--
--
102.
811
3.7
2.8%
10
114.
1-0
.3%
--
--
--
108.
211
9.6
5.2%
11
* Th
e S
inga
pore
Dep
artm
ent o
f Sta
tistic
s ha
s re
base
d th
e C
onsu
mer
Pric
e In
dex
(CP
I) B
ase
Yea
r to
Yea
r 200
9.S
ourc
e: B
uild
ing
and
Con
stru
ctio
n A
utho
rity
and
Sin
gapo
re D
epar
tmen
t of S
tatis
tics
-
CONSTRUCTION TRENDS 25
AND CONSUMER PRICE INDICES
85105 95115
135
125
145
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
BC
A T
PI
BC
A B
MP
IB
CA
LC
IC
PI*
-
CONSTRUCTION TRENDS1
CONSTRUCTION TRENDS
BUDGET 2014: A COMMENTARY ONPRODUCTIVITY
This section provides a commentary on our response to the Budget 2014 Speech. Though there are mixed reactions from the public on the overall announcement, one point that is incontrovertibly clear is that theGovernment is not engineering a hard landing for the construction industry, rather, it is monitoring the situation and will adjust measures when necessary. What is also clear is the message on Productivity (in Construction) and the Governments incessant effort to encourage higher productivity in the construction industry.
Summary of Initiatives1) The use of productivity technologies, including but not limited to Prefab Bathroom Units, will soon be mandated for selected Government Land Sales (GLS) sites in the tender conditions. For Industrial GLS (iGLS) sites, JTC will also stipulate a minimum percentage level of prefabrication.
2) The Government will continue to increase the legislated buildability-scores and constructability- scores for projects.
3) Developers will be incentivised to adopt productive technologies in developments on non-GLS sites.
4) For public sector projects, the tender evaluation will award higher ratings for firms with good track records in adopting productive construction designs and methods.
From the above, it is clear that the choice of the entire project team is critical to ensure that designs, materials selection and technologies are all approached and synchronised with productivity (and sustainability) in mind. Productivity enhanced specifications and construction management will also be crucialconsiderations in the drive towards improvingproductivity in construction.
Early Contractor InvolvementIt is also clear that the Government will want to see developers to be more efficient in the building processes and supply chain prior to award of the land. By involving the contractor early in discussions, the project will gain greater benefits in terms of Risk Assessment, Value Management and even Environmental Health and Safety requirements.
26
-
Increase in Foreign Worker Levies (FWL)There will also be a $100 increase in the FWL for Basic Skilled or R2 Work Permit Holders (WPH) employed within the Man-Year Entitlement in July 2016. It is estimated that the above change would equate to approximately 0.5% to 0.7% increase of the construction cost in itself.
Levies for Higher Skilled or R1 WPH will remain unchanged to encourage construction firms to opt for more skilled foreign workers. It is also mentioned that in the longer term, the Government will be looking into mandating a minimum proportion of R1 WPH at the firm level to improve the skill profile of the foreign workforce.
To further assist the construction industry to upgrade, the Productivity & Innovation Credit Scheme will be extended for another 3 years to 2018.
Disruption in the Supply of Granite Aggregates (Dj vu)Contractually, the stance of on-going projects is that there should be no EOT, no cost implications and no force majeure arising from the January 2014 disruption of granite aggregates supply. The reasons being that granite aggregates can still be obtained from other sources and BCA is also facilitating the importers and other stakeholders in the industry to ramp up supply from these diversified sources.
To further ease the situation, the Government also announced that they have activated the release of the national granite stockpile. This will help the industry to tide over the current situation.
The release price of granite aggregate from the national stockpile is $30/tonne and $50/tonne for February and March 2014 respectively. Inevitably, this will have cost impact on Ready-Mixed Concrete (RMC) pricings.
Whilst the actual cost impact on RMC is not definitive at this point in time, we note that RMC supply price has gone up by approximately $15 - $25/m3 in mid February 2014. For a ballpark cost indication, $10/m3 of RMC supply price increase would equate to around 0.6% increase of a typical suburban condominium construc-tion cost and would vary accordingly to the development type and design parameters.
Moving on, we will continue to monitor this closely as the situation is still very fluid.
CONSTRUCTION TRENDS 27
-
2CONSTRUCTION COST DATA
Preambles
Construction Costs For Singapore
Construction Costs For Selected Asian Cities
Construction Cost Specification
Cost Breakdown For Different Building Types
Major Rates For Selected Asian Cities
M&E Costs For Singapore
M&E Costs For Selected Asian Cities
Office M&E Cost Components
M&E Cost Charts
Utility Costs For Selected Asian Cities
-
CONSTRUCTION COST DATA2
CONSTRUCTION COST DATA
PREAMBLES
The construction costs for the respective categories given on the following pages are average costing at4th Quarter 2013. They are based on interpolation of competitive tenders received.
Based on L&S data, tender prices for 2013 have increased approximately 6% year-on-year (i.e. 4th Quarter 2013 versus 4th Quarter 2012). Looking ahead, tender prices in 2014 are anticipated to increasemoderately, possibly in the range of 3% to 5% per annum.
The construction cost serves as a guide for preliminary cost appraisals and budgeting. It must be understood that the actual cost of a building will depend upon the design and many other factors such as major infrastruc-ture of the buildings/structures, etc. and may vary from the figures shown. The costs per square metre are based on construction floor areas measured to the outside face of the external walls/external perimeter including lift shafts, stairwells, plant rooms, water tanks and the like.
As a guide, it might be worth to note that construction costs generally may vary accordingly depending on the following specific requirements:
a. Complexity of the project
b. Site encumbrances
c. The need of special structural such as heavy transfer structures over MRT/RTS structures/tracks/boxes, etc. or due to close proximity to nearby infrastructure such as canals, bridges, etc.
d. The types of structural system (i.e. reinforced concrete or structural steel system, precast/prefabrication, etc.)
e. The types of temporary works required (i.e. diaphragm walls, sheet piling, etc.)
f. The method of construction e.g. conventional or top down
30
-
g. Basement works which are carried out in phases may require additional temporary works and different types of construction sequence
h. Deep basement (i.e. levels of basement)
i. Selection of Contractor (i.e. local or foreign)
j. Shape of the existing site as longish sites would generally attract higher cost due to higher wall to floor ratio
k. The level of Green Mark rating, Buildability-Scores, Constructability-Scores, etc.
l. Economic and political issues (e.g. disruption in supply of materials, etc.)
All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil conditions and minimal external works. The costs exclude the following:
Professional fees Authorities plan processing charges Land cost Financing charges Site inspectorate Administrative expenses Legal costs and disbursements Demolition of existing building/s Furniture, fittings and equipment (F.F. & E.) (unless otherwise stated)
Operating equipment Cost escalation Goods and Services TaxThe codes and standards for each category of building vary from country to country and do not necessarily follow those of Singapore.
CONSTRUCTION COST DATA 31
-
CONSTRUCTION COST DATA2
CONSTRUCTION COST DATA32
CONSTRUCTION COSTS FOR SINGAPORE
The above costs are at 4th Quarter 2013 levels.For latest costs information, please refer to our L&S Quarterly Cost Publication.
TYPESOVERALL COST
RESIDENTIAL
Terraced Houses 2,500 2,800
Semi-Detached Houses 2,700 3,150
Detached Houses 3,150 4,200
Average Standard Condominium 1,950 2,200
Above Average Standard Condominum 2,200 2,950
Luxury Condominium 2,950 4,400
OFFICE
Average Standard Offices 2,500 2,750
Prestige Offices 2,750 3,050
COMMERCIAL
Shopping Centres, Average Quality 2,750 2,950
Shopping Centres, High Quality 2,950 3,250
Theatres / Cinemas (Excluding F.F.& E.) 2,050 2,300
CAR PARKS
Multi-Storey Car Parks 950 1,350
Basement Car Parks 1,350 1,850
HIGHS$/m2
LOWS$/m2
-
CONSTRUCTION COST DATA 33
TYPESOVERALL COST
HIGHS$/m2
INDUSTRIAL
Flatted Light Industrial Buildings 1,300 1,450
Flatted Heavy Industrial Buildings 1,450 1,950
Single Storey Industrial Buildings 1,200 1,350
Flatted Warehouses 1,200 1,350
Single Storey Warehouses 1,050 1,350
HOTEL (Including F.F. & E.)
Resort Hotels 3,000 3,250
3-Star Hotels 3,100 3,350
4-Star Hotels 3,250 3,900
5-Star Hotels 3,950 4,500
Serviced Apartments 2,300 3,000
HEALTH
Private Hospitals 3,950 4,150
Polyclinics, Non Air-conditioned 1,650 1,850
Nursing Homes, Non Air-conditioned 1,650 1,950
Medical Centres 3,050 3,250
LOWS$/m2
-
CONSTRUCTION COST DATA2
CONSTRUCTION COST DATA34
CONSTRUCTION COSTS FOR SELECTEDASIAN CITIES
BU
ILD
ING
TY
PE
US
$/m
2
DO
ME
ST
IC
Apar
tmen
ts, h
igh
rise,
ave
rage
sta
ndar
dAp
artm
ents
, hig
h ris
e, h
igh
end
Terra
ced
hous
es, a
vera
ge s
tand
ard
Det
ache
d ho
uses
, hig
h en
d
OF
FIC
E / C
OM
ME
RC
IAL
Out
-of-t
own
shop
ping
cen
tre, a
vera
ge
stan
dard
Ret
ail m
alls
, hig
h en
d
HO
TE
LS
Budg
et h
otel
s - 3
-sta
r, m
id m
arke
tBu
sine
ss h
otel
s - 4
/5-s
tar
Luxu
ry h
otel
s - 5
-sta
r
CO
NS
TR
UC
TIO
N C
OS
TS
FO
R S
EL
EC
TE
D A
SIA
N C
ITIE
S
Med
ium
/hig
h ris
e of
fices
, ave
rage
sta
ndar
dH
igh
rise
offic
es, p
rest
ige
qual
ity
MA
CA
U
1,88
0-2
,300
2,62
0-4
,010
3,22
0-3
,830
3,92
0-5
,260
2,17
0-2
,800
2,80
0-3
,070
2,04
0-3
,070
3,22
0-3
,950
2,88
0-3
,270
3,92
0-4
,760
4,76
0-6
,010
HO
NG
K
ON
G @
2,88
0-3
,420
3,90
0-4
,550
3,95
0-4
,600
5,30
0-5
,850
2,88
0-3
,420
3,63
0-4
,400
2,88
0-3
,420
3,95
0-4
,550
3,75
0-4
,000
3,95
0-4
,550
4,55
0-5
,250
SIN
GA
PO
RE
1,56
0-1
,760
2,36
0-3
,520
2,00
0-2
,240
2,52
0-3
,360
2,00
0-2
,200
*2,
200
-2,4
40*
2,20
0-2
,360
2,36
0-2
,600
2,48
0-2
,680
3,16
0-3
,600
3,16
0-3
,600
KU
AL
AL
UM
PU
R
410
-61
098
0-1
,175
285
-41
095
5-1
,170
770
-88
51,
110
-1,4
9568
5-
825
845
-1,0
95
1,28
5-1
,775
2,22
5-2
,570
2,47
5-2
,855
BR
UN
EI
804
-1,1
0499
3-1
,293
520
-82
079
1-1
,091
804
-1,1
041,
137
-1,4
3778
0-1
,080
1,02
9-1
,329
1,52
0-1
,820
2,14
4-2
,444
2,20
1-2
,501
IND
IA
475
-55
072
5-
870
325
-35
043
0-
455
360
-39
045
0-
480
350
-38
0
500
-52
5
675
-75
01,
050
-1,2
501,
340
-1,4
75
-
CONSTRUCTION COST DATA 35
IND
US
TR
IAL
Indu
stria
l uni
ts, s
hell o
nly
(Con
vent
iona
l st
orey
fram
ed u
nits
)O
wne
r ope
rate
d fa
ctor
ies,
low
rise
, lig
ht
wei
ght i
ndus
try
OT
HE
RS
Und
ergr
ound
/bas
emen
t car
par
ks (