TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 150

possibility of substantial growth. The drop in employment in

private building sites was significant, but the high level of

building consents granted in 1980 and 1981 means that a high

level of output should still be achieved.

5.15

Meanwhile, relatively stable prices for building and

construction materials and relatively moderate increases in

construction wages (at least for the unskilled and the

semi-skilled) have continued to constrain the rate of increase

in construction costs. The Labour and Materials Costs Index

prepared by the Architectural Office of the Public Works

Department was in the first quarter of this year

of this year 13% higher

than in the first quarter of 1981. The Tender Price Indices

for public building and for public housing estate projects, presumably affected by variations in profit margins, actually declined by 6% and 18% respectively(12).

(12)

Period

Land

Cost and price indices for

the building and construction industry

(1970 Q1 = 100)

Labour and material

costs

Tender prices*

(public building projects)

(public housing projects)

1979 Q1

278 (29.3)

262 (29.1)

Q2

304 (38.2)

285 (27.0)

Q3

334 (42.7)

304 (32.2)

Q4

348 (37.5)

329 (38.2)

1980 Q1

355 (27.7)

347 (32.4)

Q2

363 (19.4)

353 (23.9)

Q3

374 (12.0)

369 (21.4)

Q4

387 (11.2)

381 (15.8)

-

1981 Q1

395 (11.3)

389 (12.1)

320

409 (12.7)

393 (11.3)

324

Q3

413 (10.4)

375 (1.6)

299

Q4

433 (11.9)

376 (-1.3)

278

1982 Q1

446 (12.9)

364 (-6.4)

262 (-18.0)

Notes:

( ) Percentage change on the same period of preceding year

* While the TPI for public building projects (e.g. hospitals, schools government offices/quarters etc.) are compiled by the Architectural Office of the Public Works Department, those for public housing estate projects are compiled by the Housing Branch.

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