ebulletin

June 17, 2021
Quarterly Construction Cost Review
Arcadis released its latest China and Hong Kong Quarterly Construction Cost Review for the first quarter of 2021.
China's economy saw GDP growth of (+)18.3% YoY, in Q1 2021, which presents a strong rebound, after the recession caused by COVID-19 pandemic in Q1 2020. In Q1 2021, construction wages remained stable. Comparing with last quarter, the average basic construction product costs fluctuated in price with rebar (+)10%, steel (+)15%, aluminium (+)13%, copper(+)18%, concrete (+)1% and cement (-)1%. The tender price climbs up by 3%. The construction market price level is anticipated to continue to rise in the next quarter.
Economy of Hong Kong is further recovering in 2021 after the year-long recession in last year. Gross Domestic Product (GDP) rose by 7.9% YoY in Q1 2021 after contraction in six consecutive quarters since Q3 2019. Amongst the GDP components, private consumption expenditure slightly recovered with (+)1.6% growth following decline in six quarters as the government is gradually relaxing the social distancing measures. However, not all industries are benefited by the policy. Some service industries such as tourism still stay in a fragile state. Deflation ended in the first quarter of 2021, Consumer Price Index (CPI) increased by 0.5% YoY in March 2021.
< Download > the 2021 first quarter edition of Arcadis' China and Hong Kong Quarterly Construction Cost Review

Tianhe commercial district, Guangzhou, China