According to a recent report, property developers face rising construction costs in Hong Kong. A developer says that the tender bids submitted by construction firms are around HK$3,000 per sq ft for an average-quality project, an increase of almost 50% on last year. Alnwick Chan, Executive Director and Head of Valuation and Professional Services at Knight Frank, says as homebuyers now have higher expectations on the quality of flats, developers cannot cut construction costs easily. They may need to raise selling prices to cover the increase in construction costs.
     Mr Chan notes that construction costs typically accounted for 30% of development costs, but in some cases it could be higher.