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LCQ10: Construction and administration costs in the production of subsidised housing
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     Following is a question by the Hon Abraham Shek Lai-him and a written reply by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, in the Legislative Council today (June 22):

Question:

     Regarding the construction and administration costs in the production of subsidised housing, will the Government inform this Council of:

(1) the estimated and actual (i) average construction costs per square foot of construction floor area (ft2-CFA), (ii) average construction costs per flat, and (iii) average administration costs per flat, of the public rental housing flats constructed/to be constructed by Hong Kong Housing Authority (HA) in each year from 2015-2016 to 2020-2021 (set out the information in the attached table);

(2) the estimated and actual (i) average construction costs per ft2-CFA, (ii) average construction costs per flat, and (iii) average administration costs per flat, of the Home Ownership Scheme flats constructed/to be constructed by HA in each year from 2016-2017 to 2020-2021 (set out the information in a table of the same format as the attached table); and

(3) the estimated and actual (i) average construction costs per ft2-CFA, (ii) average construction costs per flat, and (iii) average administration costs per flat, of the subsidised sale flats constructed/to be constructed by Hong Kong Housing Society in each year from 2015-2016 to 2020-2021 (set out the information in a table of the same format as the attached table)?

ReplyˇG

PresidentˇG

     My reply to the question raised by the Hon Abraham Shek Lai-him  is as follows -

(1) & (2) The average construction costs per square foot (ft2) of construction floor area (CFA) and per flat of the public rental housing (PRH) projects completed or to be completed by the Hong Kong Housing Authority (HA) during the period from 2015-16 to 2019-20 are at Annex A.

     There is no Home Ownership Scheme (HOS) flat completed in 2015-16. The average construction costs per ft2 of CFA and per flat of the HOS projects to be completed by HA during the period from 2016-17 to 2019-20 are at Annex B.

     The average direct costs and overheads charged to PRH and HOS projects of HA (mainly personal emolument costs of Housing Department staff involved in the construction of PRH and HOS, and other related expenses) for the period from 2015-16 to 2019-20 are estimated to be about 13% of the total construction cost.

     For PRH and HOS projects with completion dates scheduled for 2020-21, most of them are still at the preliminary planning and design stage and the project design are subject to change. Therefore, we are unable to provide the relevant information at this stage.

(3) The average construction costs per ft2 of CFA and per flat of subsidised sale flats (SSF) projects completed or to be completed by the Hong Kong Housing Society (HKHS) during the period from 2015-16 to 2020-21 are at Annex C.

     The average direct costs and overheads charged to SSF projects by HKHS (mainly consultants' fees, site supervision costs, personal emolument costs of HKHS staff and other related expenses) from 2015-16 to 2020-21 are estimated to be about 13% of the total construction cost.

Ends/Wednesday, June 22, 2016
Issued at HKT 12:56

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