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QUARTERLY

COST PUBLICATION
Issue 37: February 2018

Cost Update
Based on Arcadis Singapore's data, tender prices for 2017 have declined approximately 2.5% year-on-year (i.e.
4th Quarter 2017 versus 4th Quarter 2016).

Looking ahead, with the anticipated rise in commodity and raw construction material prices as well as the project
demand in private sector market arising from the surge in en-bloc redevelopment projects, tender prices are
anticipated to remain competitive as contractors are filling up their order books.

Nonetheless, the price movement (if any) for the whole year of 2018 is anticipated to be in the range of -1% to
+2%, the actual level depending on the prevailing market situation and any adverse ramifications of the prevailing
economic instability.

Tender Price Index (TPI)


Arcadis Singapore TPI is a measure of the comparative tender price movements based on the projects handled
by Arcadis Singapore Pte Ltd. The TPI reflects the tender price level of contracts let out over the years. Other than
material and labour costs, it takes into account the elements of competition, risk and profits.

130
124.0
125 Arcadis SG^ BCA*
120

115
Tender Price Index (Base Year at 2010)

119.9 108.1 108.1


110 108.8
104.3
105 107.1 101.3 102.0 102.0 106.8 101.2
100.0 104.6
100 104.0 98.7
94.1 93.8 100.0 99.7 99.8
95 98.0
96.6 96.7
90.2
90 93.7
93.3 87.5 86.4 87.4 89.3
85 83.6
84.7 78.6 82.7
80 77.8
76.8 77.0 80.2
75
75.9 74.8 75.4 74.9 75.6
70

65
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: * Building and Construction Authority as at 9 February 2018.

Note: With effect from the 1st Quarter of 2015, BCA has implemented the new TPI series with Base Year 2010 = 100. The TPI chart shown above has been amended accordingly to
reflect the Base Year as Year 2010.

^ From 2009 onwards, Arcadis Singapore TPI based on 4th Quarter index.

Copyright  Issue 37: February 2018


Quarterly Cost Publication

Construction Volume
According to preliminary figures published by BCA, total construction demand in 2017 was $24.5 billion, a
decline of approximately 7% as compared to 2016. Public sector construction demand increased slightly
from $15.4 billion in 2016 to $15.5 billion in 2017. While private sector construction demand fell from $11.0
billion in 2016 to $9.0 billion in 2017, albeit within the original forecast range of $8 billion to $11.0 billion.

Based on BCA’s forecast, total construction demand (excluding reclamation works) for 2018 is projected to
expand to between $26 billion and $31 billion. Public sector construction demand is projected to strengthen
to between $16 billion and $19 billion, contributing to approximately 60% of the total construction demand.
Likewise, private sector construction demand is expected to improve to between $10 billion and $12 billion.

Public Sector
$16 - $19bn
(≈60%)

$26 - $31
billion
Private Sector
$10 - $12bn
(≈40%)

Source: * Building and Construction Authority as at 11 January 2018.

Copyright  Issue 37: February 2018


Quarterly Cost Publication

Construction Costs for Different Types of Development

4Q2017
Type
(S$/m2 CFA)
RESIDENTIAL
Terraced Houses 2,350 – 2,650
Semi-Detached Houses 2,550 – 3,000
Detached Houses 3,000 – 4,000
Average Standard Condominium 1,800 – 2,050
Above Average Standard Condominium 2,050 – 2,800
Luxury Condominium 2,800 – 4,200

OFFICE
Average Standard Offices 2,350 – 2,650
Prestige Offices 2,650 – 2,900

COMMERCIAL
Shopping Centres, Average Quality 2,650 – 2,800
Shopping Centres, High Quality 2,800 – 3,100

CAR PARKS
Multi-Storey Car Parks 880 – 1,280
Basement Car Parks 1,280 – 1,730

INDUSTRIAL
Flatted Light Industrial Buildings 1,230 – 1,380
Flatted Heavy Industrial Buildings 1,380 – 1,880
Single Storey Industrial Buildings 1,130 – 1,280
Flatted Warehouses 1,130 – 1,280
Single Storey Warehouses 1,000 – 1,280

HOTEL (Including Furniture and Fittings)


Resort Hotels 2,850 – 3,100
3-Star Hotels 2,950 – 3,250
4-Star Hotels 3,150 – 3,750
5-Star Hotels 3,800 – 4,300

HEALTH
Private Hospitals 3,800 – 4,000
Polyclinics, non air-conditioned 1,600 – 1,800
Nursing Homes, non air-conditioned 1,600 – 1,900
Medical Centres 2,900 – 3,100

The construction costs above serve only 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, site conditions 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, plant rooms,
water tanks and the like.

All buildings are assumed to have no basements (unless otherwise stated) and are built on flat ground with normal
soil conditions. The costs exclude the following:

 Professional fees  Furniture and fittings (unless otherwise stated)


 Authorities’ plan processing charges  Operating equipment
 Land cost  External works
 Financing charges  Prefabricated Prefinished Volumetric Construction (PPVC) /
 Site inspectorate Prefabricated Bathroom Units (PBUs) / Structural steel structure
 Administrative expenses  Cross Laminated Timber (CLT) / Glued Laminated Timber (Glulam)
 Legal cost & disbursements  Cost escalation
 Demolition of existing building(s)  Goods and services tax

Copyright  Issue 37: February 2018


Quarterly Cost Publication

Mechanical and Electrical Installation Costs for Different Types of Development


4Q2017
Type
M&E Costs (S$/m2 CFA)
RESIDENTIAL
Detached Houses* 402 – 582
Average Standard Condominium 325 – 435
Luxury Condominium 438 – 702

OFFICE
Average Standard Offices 443 – 624
Prestige Offices 536 – 808

INDUSTRIAL
Flatted Factories 230 – 440
Warehouses 171 – 344

HOTEL
Resort Hotels 521 – 729
3-Star Hotels 716 – 896
5-Star Hotels 804 – 981

INSTITUTION
Hostel 246 – 412
School 147 – 292

OTHERS
Multi-Storey Car Parks 58 – 143
Basement Car Parks 95 – 183
Shopping Centres 456 – 808
*For detached houses, the M&E installation costs above include air-conditioning but exclude lifts.

The M&E installation costs serve only as guide for preliminary cost appraisals and budgeting purposes. It must
be understood that the actual costs for M&E installation will depend on the system design, site conditions and
many other factors and may vary from the figures shown. The costs per square metre are based on
Construction Floor Area (CFA). All buildings are assumed to have no basements (unless otherwise stated)
and the costs exclude the following:

 Professional fees
 Utilities connection charges
 Decorative light fittings
 Operating equipment
 Diversion of existing M&E services
 Fit-out to tenanted areas
 Landscape light fittings
 Swimming pool and water feature filtration system
 Car parking system (i.e. electronic parking and car parking guidance system)
 Pneumatic waste system
 Irrigation system
 Security system
 IT infrastructure system
 Cost escalation
 Goods and services tax

Copyright  Issue 37: February 2018


Quarterly Cost Publication

Arcadis’ Project: New National Cancer Centre in SGH Campus

Project perspective courtesy of Ministry of Health

Situated along Outram Road and the new Hospital Boulevard, the new National Cancer Centre Singapore (NCCS)
Building, which is slated to be completed by 2022, is part of the masterplan to redevelop the SGH Campus to meet
the growing healthcare needs in Singapore.

The new NCCS Building will be about three times the size of the current centre to meet future needs and will house
facilities dedicated to cancer care and rehabilitation, research and education. The new NCCS Building will
incorporate patient-centric features to improve patient flow and experience.

Spanning across 24 storeys and 4 basements, and with a gross floor area of approximately 92,000 square metres,
the new NCCS Building will include the following suite of facilities:

 Proton Therapy and Radiotherapy Centre with 4 360˚-Proton Beam Therapy gantries as well as 17
conventional Radiation Therapy Linear Accelerators
 Facility for National Immunotherapy and Cell Therapy research
 Diagnostic and Treatment areas (such as Operating Theaters, IORT, Chemotherapy Infusion, Oncologic
Imaging, PET, etc.)
 Specialist Oncology Clinics
 Office spaces and other facilities such as a staff welfare centre and a food court;
 Car parks

We are proud to be the Quantity Surveyor for the new NCCS Building in SGH Campus.

Copyright  Issue 37: February 2018


Quarterly Cost Publication

CONTACT US
Cost Research Department
Khoo Sze Boon
Executive Director
Head of Cost Management and
Quantity Surveying
T: +65 6239 8232
E: SGCorpCostResearch@arcadis.com

Cheryl Lum
Senior Director
T: +65 6239 8260
E: SGCorpCostResearch@arcadis.com

Mechanical & Electrical QS Department

Lorimer A. Doig
Executive Director
T: +65 6239 8201
E: SGCorpMnEunit@arcadis.com

ARCADIS SINGAPORE PTE LTD


1 MAGAZINE ROAD
#05-01 CENTRAL MALL
SINGAPORE 059567
T : +65 6222 3888
E : ArcadisSG@arcadis.com

www.arcadis.com

Arcadis. Improving quality of life

Our Quarterly Cost Publication provides a synopsis of cost information and issues in the construction industry and is intended for information
purposes only. While Arcadis Singapore endeavour to ensure the accuracy and completeness of the information sheet, specific professional
legal advice should be obtained and Arcadis Singapore shall bear no liability whatsoever for any part of its contents. All rights reserved.
Copying in any form or by any means (electronic, photocopying or otherwise) is strictly prohibited without the written permission of Arcadis
Singapore.

Copyright  Issue 37: February 2018