CONSTRUCTION MARKET INTELLIGENCE
FIRST QuaRTeR 2012
INDEPENDENT CONSULTANTS LOCAL KNOWLEDGE AND EXPERTISE GLOBAL NETWORK
RIDeR LeVeTT BuCKNaLL
Rider Levett Bucknall are independent property market and construction cost consultants with offices located globally.
THe INTeRNaTIONaL RePORT
The Rider Levett Bucknall International Report is published twice-yearly and provides detailed local construction market intelligence and data.
THe INTeRNaTIONaL RePORT uPDaTe SuRVeY
The Rider Levett Bucknall International Report is supplemented by the twiceyearly International Report Update Survey.
Rider Levett Bucknall provides trusted advice on the construction markets in this report and remains committed to the communities in which we practice. It is through our engagement with our own people and our clients and with other parties to the construction contract at home and abroad that we succeed. We are dedicated to upholding our strong track record of performance. We want to be part of the solution for our clients and pave the way for our people to put their skills to work. Rider Levett Bucknall prides itself on exceptional service delivery to its clients, offering a combination of pre-eminent cost experts, a history of proven success and a global alliance with a broad knowledge bank of experience. Our projects regularly demand a team of distinguished professionals from around the world, fostering a collaborative approach. Rider Levett Bucknall is also committed to its research activities. Our series of cost reports contains a wide range of research advice to assist our industry colleagues and clients. Our research includes information, reviews of labour costs and activity trends to enable informed forecasting of future construction costs. Like the firms we work with, Rider Levett Bucknall is focused and responsive to the marketplace. In 2012 we will further enhance our capabilities and look forward to working with you to deliver significant projects. Visit rlb.com/app
Cover: London skyline across the Thames
Disclaimer: While the information in this publication is believed to be correct at the time of publishing, no responsibility is accepted for its accuracy. Persons desiring to utilise any information appearing in the publication should verify its applicability to their specific circumstances. Cost information in this publication is indicative and for general guidance only and is based on rates as at January 2012.
The International Report, covers the globe, providing a half-yearly snapshot of construction market conditions and price movements around the world, via commentaries and analysis from Rider Levett Bucknall Directors in key locations A broad overview of regional economic issues is provided on Page 1, followed on pages 3-23 by commentaries from Rider Levett Bucknall Directors in multiple locations in each region. Commentary on each region is supplemented by a Construction Cost Relativity table for that region. Pages 24 and 25 feature Construction Rates for building types in cities within each region, providing easy comparison between locations. Pages 26 and 27 consider the wider issue of general market activity levels for seven building types, in each location, using the Rider Levett Bucknall Construction Activity Cycle Model to provide an insight into market movements. Regional analysis of this data is shown on page 27, with a total of responses within each cycle-sector, giving an overview of activity levels in each Region. On pages 28 and 29 we feature Key Statistics – the data that describes countries’ general economic performance, as a backdrop against which the construction industry functions on the ground. Overall International Construction Cost Relativity is shown on page 30, with each location placed in its ranking spot in respect of al the other locations in the study. The International Report is a member of a suite of Reports produced by Rider Levett Bucknall. Currently, in addition to the International Report, the suite comprises the Caribbean, European, Gulf States, Hong Kong and China, Oceania, Singapore, USA and Vietnam Reports Each document has its own unique flavour, driven as they are, by the conditions and circumstances of the particular economy in question. All are available at www.rlb.com. Textual commentary is also featured in the Rider Levett Bucknall Intelligence Smartphone App and via Desktop WebApp, at www.rlbintelligence.com
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the downgrading of the country’s credit rating and rising national debt of 70% GDP has exacerbated economic woes. There are however. Residential construction activity continues to decline in most states. The UK is no exception. In some markets. the Government’s vast SAR500billion investment in infrastructure and affordable housing continues to spur growth. Governments are attempting to balance fiscal austerity measures against the need to stimulate a modicum of growth. the Chinese Central Government has imposed a series of measures to cool down the private sector property market and to tame inflation. however a far longer timeframe is expected for full recovery to take place. In New Zealand. some positive signs in the office markets of Brisbane and Perth in particular. and in industrial construction. The roll-out of the Central Government’s 10 million affordable homes project continues. although foreclosures are on the decline in many states. The Government’s stimulus infrastructure spending. Commercial construction activity is also very weak. most sectors continue to languish. In Singapore. Residential property prices have exhibited slowing increases. due to ongoing global economic uncertainty and seasonal effects. House prices remain depressed. coupled with high unemployment. As a result. discounting on new projects by as much as 30% is being used to court buyers. eMea The economic crises engulfing the EU are having a major impact around the Region. After some signs of recovery in London’s residential and commercial sectors in the first half of 2011. while Industrial property prices continue to rise steadily. On-going financiers’ risk aversion continues to inhibit developers. The residential construction market is depressed. with both increased office vacancy rates and downward pressure on rental rates attributable to the ongoing job market malaise. Nonresidential construction is showing more resilience. a trend that is unlikely to change soon. as it seeks to alleviate housing affordability problems for the lower-middle-classes. demand for commodities in China may be beginning to soften as measures to curb inflation take hold. Across Europe. aSIa Since late 2010. given the current economic climate. The effects of the Canterbury Earthquake and aftershocks have not yet reached the construction market. While resource exports continue to expand. although West-End development and the buy-to-let market remain buoyant. as work done and consents continue to slide. but private sector construction activity has yet to recover sufficiently to replace it. In Saudi Arabia. activity slowed. as the Government struggles to reignin mounting debt. Construction continues to be constrained by developers’ lack of access to finance. Construction is no exception. as lending institutions remain highly risk averse amid the economic turmoil. OCeaNIa Australia’s economy continues to be hampered by the uncertainty abroad. with construction of new apartments and condominium projects also at significantly reduced levels. as housing prices slide and demand softens. has largely been completed. revised growth of 5% for 2011 may give way to more moderate growth in 2012. as insurance and regulatory issues are still being resolved. Reconstruction is expected to commence in earnest this year. as the Government seeks to avoid a ‘hard landing’ for the economy.
. inflation has subsided and property prices have fallen. with more modest falls. as demand remains subdued amidst on-going uncertainty at home and abroad. Healthy demand continues for commercial properties. while the ease of access to credit from the Kingdom’s well-capitalised banks is driving private sector fixed-asset investment.
Tightened monetary conditions will begin to ease over the first half of the year. with further price cuts occurring as declining sales and increasing inventory impact upon developers.INTERNATIONAL REPORT
THE INTERNATIONAL REPORT
aMeRICaS With the US economy struggling to sustain momentum in its recovery. Some improvement in economic fortunes is anticipated over 2012.
Economic Center of China. Shanghai
and moderating inflation may also allow the government to cut interest rates from early in the year. which measures tender price movements in building works in the private sector in Hong Kong. there was an increase of 3% in tender prices in the third quarter of 2011. According to Rider Levett Bucknall’s Tender Price Index. the government’s affordable housing projects will help support construction activities. or slightly less than that in 2011.8% in October over the same month a year earlier. which is slightly higher than that recorded in the July to September 2011 quarter.
aSIa CONSTRuCTION COST ReLaTIVITIeS HONG KONG MACAU SINGAPORE BEIJING SHANGHAI SHENzHEN GUANGzHOU
JaN 12 124 102 98 88 86 77 76
. The effect of property market control policies should last until at least the middle of 2012 before momentum picks up again.3% year-on-year in real terms in the third quarter of 2011. A very mild upward trend is expected in 2012. the shortage of skilled workers is expected to worsen over the next few quarters. Nevertheless. However.3% increase in the second quarter. The continuing Eurozone sovereign debt crisis. the construction market in Beijing remains stable.INTERNATIONAL REPORT
MARKET INTELLIGENCE ASIA
The residential property market in Beijing has already cooled significantly since the implementation of the purchasing control policy.
Hong Kong’s economy grew by 4. materials prices are not expected to increase any further. Due to weak demand globally. The selling prices for some new units at Tongzhou and Daxing areas have been discounted. According to the Composite Consumer Price Index. quarter-on-quarter equating to a 10% increase year-on-year. The seasonally adjusted unemployment rate was 3. as Hong Kong has entered a period of heavy infrastructure construction activity. Overall. compared with the 5. As a result. It is anticipated that tender prices in 2012 will continue to rise at a rate similar to. and the average price of second-hand properties has dropped to the lowest in the last 16 months. as was the case in September. overall consumer prices rose by 5. together with on-going weak economic performances in the United States and the slowdown of the Chinese economy. Some market analysts say that they expect more price cuts as declining sales and increasing inventory put more strain on property developers. will affect sentiment among developers and contractors in Hong Kong in the short term. due to ongoing government infrastructure works and the recent new development of mixed-use projects in CBD areas. construction costs are unlikely to be subject to any downward adjustment pressure.3% in August to October 2011.
developers have been reducing prices on new projects by as much as 30%.2% in November 2011 from the peak of 6.
According to the Statistics and Census Service of the Macau government.5% in July 2011. Looking ahead. new home prices in China’s major cities saw a month-onmonth drop (0.2% in Guangzhou). and in order to court buyers. including higher downpayments on house purchases. Construction activity remained steady throughout 2011 and is expected to continue in the new year.2% and 11% in the first and second quarters respectively. As there is a shortage of skilled construction workers in Macau and there are restrictions on importing labour. up from 10.2 percentage points over the previous period. limiting numbers of house purchases.4% to MOP581 and that of unskilled workers increased by 2.1% year-on-year in real terms. Gross Domestic Product for the third quarter of 2011 rose by 21. in particular the government’s mega-project of construction of 10 million affordable houses across the country. China’s Consumer Price Index eased to 4. Since late 2010. tender prices will remain flat or see only a slight increase in the first half of 2012. increase in banks’ reserve requirement ratio and increase in interest rates. Given forecast relative stability of materials prices. Real estate investment in the third quarter recorded strong growth of 39. the government has imposed a series of restrictive measures. Due to difficulty in obtaining finance.71% year-on-year. Consequently.0% on a quarter-to-quarter basis. an increase of 4.4% in the second quarter. following 11. in a bid to curb runaway inflation and house prices. The average daily wages of skilled and semi-skilled workers increased by 3.
. Dozens of plots of land recently ear-marked for auction were eventually withdrawn due to muted response from the market.0% to MOP363.8% year-on-year. down by 0. compared with the 24.INTERNATIONAL REPORT
MARKET INTELLIGENCE ASIA
Guangzhou’s GDP grew by 11% yearon-year in the third quarter of 2011. construction activities will continue to slow in the private sector in the first couple of months of 2012. The Composite Consumer Price Index for October 2011 increased by 6.4%.0% growth in the second quarter. construction costs are expected to continue to rise in 2012. The average daily wage of construction workers was MOP569 in the third quarter of 2011. The unemployment rate for August to October 2011 was 2. This will result in more reliance being placed upon public sector works.
From January to October 2011. while the property market is undergoing consolidation.2% increase compared to the same period in 2010. which involves relocation of existing residents and/ or landlords of old premises. more tests and reviews have been undertaken to ensure the safety of the operation of the system. it is forecast that construction costs will rise moderately in 2012. The Guangzhou-Shenzhen high speed rail link was originally scheduled to be completed in August 2011. Within the real estate sector. However. totalling RMB 174. In the longer term. while the growth rate for investment in other commercial buildings continued to slow. although construction activities have been maintained at a relatively high level.INTERNATIONAL REPORT
MARKET INTELLIGENCE ASIA
Between January and October 2011. hence its completion has been delayed. the total area under construction in Shanghai reached 121.3%.3% increase compared to the same period in 2010. a decrease of 14.175.1% year-onyear. which was an increase of 9. Overall.448.000m2.813. Most of the projects under development are going ahead. with stable market prices. As inflation is expected to be under control and the government is set to relax some of its monetary constraint measures. only a mild upward movement in construction cost is expected in 2012. due to the tragic high speed rail accident in Wenzhou in July 2011.15 billion was invested in local residential properties. Overall. A total of RMB 18. which was a 9. residential property was still the main attractor of investment.937.
Overall. Shenzhen.300m2 was residential. as the first Special Economic Zone in mainland China. Others are in the older districts. investment in office buildings arrested its decline. Elsewhere within the sector. the development of the Qinhai area as a new financial district is also moving ahead.400m2 of floor area was sold. 11.9% compared to the same period in 2010. a 7. with land reclamation currently in progress. investment in the property market in Shanghai increased steadily.1% compared to the same period in 2010. a total of RMB 110.
.7 billion. Within this. which represented a drop of 15. is transforming steadily from an industrial city into a business hub. There was a total of 77.2%. an increase of 15. despite the sluggishness in the residential market. There are quite a few major mixeduse developments in their early development stages and more in the pipeline. an increase of 16. Between January and October 2011.82 billion was invested in office buildings. Between January and October 2011. economic conditions in Shenzhen are promising. 14.700m2 floor area for residential projects. Some of this projected workload is in the newly developed area such as Futian district or Nanshan district.
City of Macau. Macau
802 new units in 2Q2011 to 4. with 2% to 3% upcoming in 2012. such as the increase of the Foreign Worker Levy.9% quarterly growth. from 4. This competitive business environment is likely to hold for the next two quarters.8% quarterly contraction in 3Q2011.7% and 3. The construction sector registered 11. Partly due to the cautious market sentiment and seasonal effects. Private residential property prices in Singapore have exhibited slowing increases for the past seven quarters. with the BCA All Buildings Index registering a 0. total construction demand reached S$24b for the last 9 months of 2011.4% contraction in 2Q2011. as prices of private office and shop properties rose by 3. due to the weak global sentiment and falls in raw material prices. after a 6.INTERNATIONAL REPORT
MARKET INTELLIGENCE ASIA
Singapore avoided technical recession in 3Q2011.3% in 2Q2011. However. Subject to confirmation. The public sector has contributed 53% of total demand. with prices rising by 1. labour costs have increased for the past 6 months due to regulatory changes. private home sales volume has decreased by 2. However. the tendering market generally remains fairly competitive. Foreigners and corporate entities have to pay an additional 10% stamp duty.4% quarterly increase. whilst industrial property prices posted higher gains with a 6. Rider Levett Bucknall’s Tender Price Index posted a 0. Healthy demand for commercial properties continued. Despite the increase in construction costs. There was a mild rise of building tender prices for 3Q2011. This was mainly due to the decline in private sector building activities. On a positive note. Main development segments that have awarded more contracts this year include private industrial. the government launched the fifth round of property-cooling measures on 8 December 2011 by imposing an Additional Buyer’s Stamp Duty (ABSD) on certain categories of residential property purchases.2% marginal rise for the same quarter.673 units in 3Q2011. with an apparent stronger interest from contractors for public sector projects. institutional and civil engineering projects. with overall GDP registering 1. annual building tender price escalation for year 2011 is anticipated to have been 3%. Construction materials and commodity supply prices have generally corrected in the last 3 months after an initial run-up. In view of large liquidity inflows amid a low interest rate environment and to curb excessive investment demand. being an open economy.9% increase for the same period. The improved economic performance was attributed to increased output from the biomedical manufacturing sector. public residential.
.7%. Singapore is exposed to the effects of global economic and market uncertainties.3% in 3Q2011 compared with a 2% increase in 2Q2011. reduction of Man-Year entitlement and weekend work restrictions on-site etc. 20% higher than the same period last year.4% respectively in 3Q2011. after expanding by 13. projecting Singapore’s GDP to have risen by 5% in 2011 and looking forward to 1% to 3% growth for this year. The Ministry of Trade and Industry has revised its growth forecast. using Seasonally Adjusted Annualised Rates. Total construction demand for 2011 is expected to have been between S$24b and S$30b.
City skyline. Boston
reinforcement bar. Many hotels’ owners are investing in upgrades to their properties. The Bio-Tech industry is providing a catalyst for new development. The approval of legislation authorising up to 3 resort-style casinos and a slot machine parlor in Massachusetts has offered up some hope. there are not too many residential developments under construction at this time.
uSa CONSTRuCTION COST ReLaTIVITIeS NEW YORK HONOLULU SAN FRANCISCO BOSTON LOS ANGELES WASHINGTON D. the buoyant rental market has allowed a small number of previously shelved apartment projects to see the light of day and a handful to break ground. with the new headquarters for Vertex Pharmaceuticals Inc. Through 2012. SEATTLE PORTLAND LAS VEGAS PHOENIX DENVER
JaN 12 155 137 137 134 125 123 105 98 94 92 92
. Speculative office construction remains some distance away. Single-family home construction has remained mired in the aftermath of the mortgage crisis and shows little sign of improvement. A large potion of the demand for this work was driven by the November 2011 APEC Conference in Honolulu. with tourism numbers up. concrete blocks. with a slow rate of recovery. with modest increases in both employment and tourist numbers. However. continue to struggle for a share of the few projects currently in play. the gaming industry could provide the industry with a muchneeded boost. Whilst there are still hurdles to overcome. with the Financial District closer to 20%.INTERNATIONAL REPORT
MARKET INTELLIGENCE USA
The Boston construction market continues to struggle to extricate itself from the grip of recession. however few local institutions have been able to maintain a robust building programme. In the residential market. resulting in increased competition and an aggressive bidding climate. Design firms and Contractors. in spite of going through a period of “rightsizing”.. whilst largescale condominium developments have essentially stopped. signalling the potential for upcoming development. Continuation of foreign investment in Hawaii real estate is keeping housing prices/figures stable. sand.C. base course and asphalt have all seen increases in the last six months. cement. structural steel. but the light at the end of the tunnel might be getting a little brighter. The bidding climate in Honolulu remains very competitive.
Economic conditions in Honolulu have continued to be stable. Materials such as gypboard. Improvements in tourism stimulates hotel renovations and the construction industry in general. Numerous materials prices have increased. as vacancy rates in the Boston market overall hover around 16%. others are continuing with plans for renovations which had been shelved for the last few years due to the economic downturn. ready-mix concrete. at Fan Pier. The State has been pushing hard to kick-off the Rail Transit Project in Honolulu. mainly due to the increases in oil price. the gradual recovery is expected to continue. as the start of the project will provide increased opportunities for the construction sector and create employment opportunities for many contractors on the bench. being among the most visible. Universities and Colleges are pushing ahead with master planning. The commercial sector has begun showing signs of life. General Excise Tax revenues have also risen from 2009 levels. Further. creating a number of short-term renovation projects. The most encouraging sign that a recovery is slowly coming to Hawaii is the advent of increased tourism.
and approximately 10.INTERNATIONAL REPORT
MARKET INTELLIGENCE USA
The economic volatility in Greater Los Angeles continues to hamper progress towards real recovery and is impacting the job market. Multi-family housing construction is often the indicator of the start of construction recovery. Construction of new apartments and condominiums is almost non-existent. and planning of the Wilshire Grand Hotel mixed-use development is moving ahead. Despite an increase in job creation. namely the Farm Fields Football Stadium and Convention Centre. taking up existing inventory. may be a factor that could constrain construction starts during the slow but continued economic recovery. industrial and retail sectors remains flat. is space returning to the market. Total square footage of construction projects under construction is at its lowest since 2004. The Broad Art Museum next to the Walt Disney Concert Hall is currently under construction. recovery in 2011 was far less robust than economic rebounds of the past. Foreclosures are on the decline and Arizona has dropped from 4th to 24th in the Nation in distressed loans.000 units are currently on the drawing board for 2012. as companies explore ways to be more efficient. The industrial and retail markets should continue to see modest activity levels. The issue of whether income growth can keep up with rental rate growth. however mortgage availability remains a problem. as a result of investment pricing being an attractive alternative to other global markets. the industrial market vacancy rate in Metro Phoenix was one of the highest in the nation and a full recovery in the industrial market is some time away. The office market continues to post low levels of activity and increased vacancy rates. Trends in real estate housing markets in Arizona indicate that the housing market may be starting to improve slightly.
. In terms of job creation. As for retail. Construction activity continues to contract as the housing market seeks to find bottom. Arizona has recently started to experience more resolute job growth. a modest rise in population and even a slight increase in single-family home permits. close to the Dodgers Stadium. a significant recovery will not take place until the housing market stabilises. and the major expansion of the historic Barlow Respiratory Hospital.
Arizona's economic recovery moved at a very slow pace in 2011. as the demand for space is tied to a still weak job market. The commercial real estate market in the office. for future net absorption. In 2011. It is expected that it will take years to recover. Office absorption rates may be higher in 2012 and 2013 as inventory declines and any such increase would help kick-start future speculative multi-tenant office building construction. Housing prices are also still at a low. It is expected that the investment market should continue to improve. Planning is progressing for other notable projects moving ahead. Rents remain well below pre-recession levels. The greatest hurdle posed to the office market. although Downtown is experiencing a steady influx of new residents. since the market follows the housing sector. with demolition of the existing complex slated for early 2012.
in the wake of initiatives aimed at stimulating the area.
Growth in the Bristol construction market continues to be hampered by a lack of available development funding and a serious lack of confidence in the economy. However. and the existing stock is therefore running down. Looking longerterm. as the effects of the Government’s austerity measures take hold. Social housing has slowed over recent months. with opportunities being identified but developers struggling to secure pre-lets and purchases or to demonstrate adequate margins to secure funding. The buy-to-let market is showing no signs of recovery in the short to medium term. However. the HS2 rail link and the proposed Western Orbital. there is little new-build activity. Government austerity measures and underlying inflation are constraining any expansion of economic growth. rising by 1% in 2012 and 1-1. will be looked-to as the backbone of public construction spending in the Region. with the result that there are now more Public Private Partnership opportunities available. as at present there looks to be very little new Grade A stock coming into play this year and next. and the City Council’s marketing efforts are reaping rewards.5% in 2013. due to a lack of mortgage availability and poor levels of confidence in the market. which will free-up Paradise Circus for re-development. There have also been enormous changes in other aspects of Private & Public Sector cooperation. there is the expectation of inward investment of some £500m. and the completion of Birmingham Library next year. especially since the demise of the Regional Development Agencies. It is clear that overseas investors are very interested in Birmingham. Activity in the Bristol market is still slow. Government funding has continued on projects that are deemed essential/vital. In order to underpin the construction industry. With the advent of Birmingham city centre’s Enterprise Zone status. this has resulted in a number of other projects being postponed in the medium-term. opportunities are presenting themselves. but this will not impact construction activity until the latter half of 2012.INTERNATIONAL REPORT
MARKET INTELLIGENCE EMEA
The Birmingham construction market remains relatively flat and is not expected to experience any major upturn until 2013/14. and accordingly. private residential developers in the South West are concentrating on saleable housing. General house building is currently at a 10-year low. which will produce an iconic building. This running down has also its other facet of giving rise to forecast good rental growth over the next few years. housing and school projects. Falling incomes. Significant delays in letting of Governmentfunded projects and initiatives have further slowed the market. RLB forecasts that tender price rises in the Bristol area will remain in check for the next 2 years.
eMea CONSTRuCTION COST ReLaTIVITIeS LONDON BRISTOL BIRMINGHAM MANCHESTER DOHA ABU DHABI DUBAI RIYADH MUSCAT
JaN 12 142 117 112 112 99 99 96 91 85
. other major infrastructure projects such as the Airport runway expansion. Current Public Sector Initiatives include the New Street Station development. whilst the housing associations have sought Government HCA Funding. additional public sector funding has been released by the Government. for infrastructure. In the office market. This funding has now been secured and we anticipate an increase in activity in this market over the coming months.
. Dubai.Dubai Marina.
8% for 2013. developers are seeking to secure pre-lets on major commercial schemes before they proceed and residential developers are looking to create joint ventures on larger residential projects. growth continues to be constrained by a lack of available development funding and the loss of confidence in the economy generally. As a consequence.9%.5% for 2012 and 2. being a subdued 1% to 1. with infrastructure showing a 13. Despite the 10-year low in housebuilding. has now started to show signs of tailing-off as the Eurozone financial crisis lingers on.5% compared with a year earlier. The RICS Construction Market Survey for Q3 2011 showed workload flat. down 1% compared with a year earlier. including the £450m Mersey Gateway. housing and schools funding is welcomed. private commercial output reduced by 1.
. There are still some major projects coming forward in the North West. As in other locations across the country. Where there is prospect of movement. but the first of the effects will not be felt in the marketplace until later in the year. The recovery seen in London during the first two quarters of 2011. construction activity forecasts remain subdued. Forecast tender price movements for London mirror the aforementioned uncertainty and workload concerns. with the Experian Construction Activity Regional Activity index standing at 38 (a figure less than 50 represents a decline). where output collapsed 26. led by the commercial and residential sectors. Construction activity in London is beginning to slow. Analysed by sector against a year earlier.5% to 2. reflecting a deteriorating financial outlook for the economy.2% in Q3 2011. this is more to do with pressure on costs than any increase in workload. a £30m Port Salford development. led by a wave of foreign investment. The sharp downward revision of growth forecasts unveiled in the Chancellor’s Autumn 2011 Statement suggests a year-long hiatus before a return to any significant growth in 2013. the planned £50m regeneration of Northwich town centre and the ongoing £100m redevelopment of Manchester Town Hall and Library.7%.
MANCHESTER/ NORTH WEST
The general outlook in Manchester appears to be for a continuation of current market conditions for at least the next 12 months. in London we are starting to see recovery in the buy-tolet residential market. with sentiment having moved into negative territory. As in the South West. the Government’s introduction of additional public sector infrastructure. the data reflects mixed fortunes.4% increase and marginal growth of 0. Prime London West End residential development continues to thrive and is propping up the market.INTERNATIONAL REPORT
MARKET INTELLIGENCE EMEA
In the Chancellor’s autumn statement. In contrast. and developers are once again shelving projects to await better days. The Office for National Statistics (ONS) reported that construction output fell by 0.7% in private housing. to mitigate risk. the UK’s growth forecast for 2012 was downgraded to 0. while the heaviest impact was felt in the industrial sector. Tender prices remained flat during 2011 and although they are forecast to recover a little in 2012. fuelled by increased rental demand and a shortage of property to rent.
The high level of competition across all sectors is still evident and is set to continue for the foreseeable future. reaching the highest level since the index was established. As the largest cement producer in the GCC.9 per cent increase in the first nine months of 2011. signifying strong growth in the health and construction sector. and a large discrepancy exists between supply and demand. the country has plans to build 16 nuclear reactors by 2030. Saudi Arabia experienced a rise in cement prices of 5. We are currently looking at a number of schemes for potential windfarm sites and a community energy company has been established in order to offer its services to a potentially significant market place. Continuing low levels of market confidence. A number of large schemes. Sheffield was viewed as exhibiting good potential and likely to provide excellent opportunities for development. across several sectors.
. to reach $65. Saudi Arabia's growing need for sustainable energy. has led to The Kingdom's first tender for a nuclear plant by the end of 2012. for both public and private education sector clients. forecast figures for the final quarter of 2011 (actual figures not available at the time of writing). The Construction Contract Index (CCI) for Q32011 indicated an uplift of 83 per cent year-on-year. the major redevelopment of The Moor and Sevenstone Retail Quarter remains on hold by the developers. with imperceptible growth. Sheffield city centre is primed for redevelopment and remains well placed to benefit from improved access to credit and increased consumer confidence as economic conditions improve. Generally the forecast for the region is flat. investment and growth. the provision of affordable housing is limited. Anticipating SEC will award SR10billion in contracts. Despite a buoyant construction backdrop. Prior to the downturn and associated austerity measures. as SR95. In the Gulf Cooperation Council (GCC). Leeds.6 per tonne. There is an over-supply of luxury and upscale residential units.INTERNATIONAL REPORT
MARKET INTELLIGENCE EMEA
Economic conditions in Sheffield. Yorkshire and Humberside have remained flat and largely unaltered over the past year. In the third quarter.
Momentum in Saudi Arabia construction continues to surge. projected continued strong growth as the power industry is expected to play a vital role in construction. A number of options for this area are being considered. with these having potentially wide-reaching impacts for the city centre and the perception from outside of the relative attractiveness for investment and relocation.4 per cent. helping to meet the domestic demand for electricity. poor access to credit and the impact of public sector reviews and cuts have weighed heavily on an already depressed market. Within Sheffield City Centre. In addition.1billion worth of contracts were awarded in Q32011. are being looked at in their very early stages. although a shortfall of affordable housing is evident. This value is more than the total value of contracts awarded in the first half of the year. various megaprojects were signed. the top line cement sector witnessed a 10.
6% to the year ending October 2011. Time will tell as to when the large project workload starts to impact on medium to smaller projects’ pricing. The impact of major projects. though not completely depressed backdrop. if that commences. The tender market remains fiercely competitive. most other sectors remain subdued. The September quarter volume of residential building Work Done fell 13. Southern Expressway and Royal Adelaide Hospital has come sooner than expected. However. as the divide widens between those contractors keen for work and those content with current levels. The Canterbury region reconstruction. mechanical services trades contractors on large projects have order books going out up to 5 years and have no urgency to add to their project portfolios. Against this subdued.2%. Adelaide Oval Redevelopment. non-residential Building Consents fell by 1. they remain at very weak levels. The non-residential sector was equally as disappointing. as residential Building Consents in the month of October rose by 46% over the same month last year. however the timing of this is. compared to the June quarter. in general terms. For these larger projects. has not impacted and is not likely to affect the Auckland region in the short term.
JaN 12 117 117 113 111 108 106 99 98 96 95 94 91
With the New Zealand economy remaining in a very slow phase of recovery. Beyond the short-term. The Auckland residential market has shown signs of recovery. Weak domestic demand is likely to see low levels of cost escalation continue over the next 6 to 12 months. inflationary pressures remain subdued.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
The Adelaide construction market has entered a dual-speed phase. Some suppliers are forecasting a downturn in orders of between 20 and 30% for the 2012 year. Work Done figures should increase. but the availability of that workload is focused upon a relatively small pool of large contractors and subcontractors – hence the two-speed feature mentioned above. while top tier contractors are more selective about the work for which they bid. Approvals figures for the same period did not deviate from this trend.0% and apartments sank 23. Suppliers and subcontractors continue to feel the pinch. with the exception of some imported commodities. Most of the construction activity is expected to be derived from “Leaky Building” remediation projects. As the spend on the major projects increases over the coming period. as the volume of private Work Done fell 7.
. while the volume of public Work Done plummeted 30. unknown. the reconstruction of Canterbury should eventually have an impact on pricing. custodial projects and the new National Convention Centre. including the new Convention Centre. The other services and the structural trades are starting to follow suit. as new houses dropped 13.7%. at this stage. Whilst there has been some improvement in the industrial. following the 2011 Earthquake and related aftershocks. it is not anticipated that the Reserve Bank will raise interest rates this year.8% for the September quarter. falling 15. with low levels of activity set to continue.
OCeaNIa CONSTRuCTION COST ReLaTIVITIeS PERTH DARWIN SYDNEY CANBERRA MELBOURNE ADELAIDE WELLINGTON TOWNSVILLE OTAGO CHRISTCHURCH AUCKLAND BRISBANE
Looking forward. Nationally. as small to medium-sized builders eagerly pursue workload.1%. spreads in tender pricing of up to 50% are evident in some cases. education and retail sectors.1%. absorbing price increases and thinning margins.
year on year. Sunshine Coast and Cairns continue to be negatively affected by the ongoing global economic turmoil and the continued strength of the currency. suggesting any sustained recovery is yet to materialise. as the volume of work completed edged up 2. year on year. the private sector may be showing some signs of a gradual revival. and with the exception of hospital redevelopment and civil infrastructure works such as the Majura Parkway.1% for the September quarter from the strong performance in the June quarter. However. it should eventually spill over into other sectors of the Queensland economy and underpin both capital investment and a new growth cycle. Education. As investment continuing to flow into the resources sector. there will inevitably be a decline in public works spending in the shortterm. Extremely competitive market conditions will continue and tender price escalation is expected to be subdued.1% rise in the volume of Work Done after four consecutive quarters of decline. However. The volume of non-residential construction Work Done dipped 5. together with an increase in rental rates should assist in improving activity.6% even though apartment approvals leapt 120% for the quarter. suggesting that as governmental influence wanes. residential approvals slipped 2.
Levels of construction in the Canberra market began to ease in the third quarter of 2011 and currently tenders in the marketplace are being keenly contested. Residential construction steadied in the September quarter with a 2. as housing approvals dropped 39. This offers prospective developers a favourable tendering environment in which to set their projects in motion. cities involved in the resources sector are experiencing the upside of this trend. The key sectors which will sustain the industry moving forward are Health. as public sector work completed fell 26.6% in the June quarter. With the Federal Government’s commitment to return the economy to a surplus in 2012/13. Meanwhile. despite continued strength in engineering construction. there are few other major Government projects which will replace them in the shortterm.
. A number of large-scale capital works projects will be completed in the coming two years. the substantial drop in overall construction activity has kept prices stable in South East Queensland. The shelving or deferral of noncritical Government capital works projects is becoming more evident. Tourist hubs such as the Gold Coast. particularly in a city such as Canberra which has a significant proportion of Government-initiated projects. The reduction in interest rates.4% quarter on quarter in the September quarter. year on year.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
Queensland continues to exhibit the broader national trends of a twospeed economy. prospects for future growth are mixed.8% gain. The volume of Work Done in Canberra’s non-residential construction market softened considerably by 24% for the June quarter. However. Housing and Infrastructure. Residential construction remains reasonably buoyant. approvals figures for the same period posted a 2. Despite upwards pressure on building prices in Central Queensland.1%.
Firms are. gearing up for the expected opportunities that are likely later in 2012 and beyond. Industrial developments and land release have progressed along the rail corridor. Wickham Point Detention Centre and Larrakeyah Barracks. More decisions on residential Red Zones. with the CBD still offlimits for all but demolition work. a major PPP project on the city outskirts.
. This will set in motion a significant increase in development in response to the needs of the projects filtering through all sectors of the economy. there has been a limited effect on construction costs to date. Darwin Airport. There has been very little movement in high-end inner-city residential development. insurers are working through the numerous damaged and demolished buildings. The Office accommodation sector has recently seen selection of a developer to provide office accommodation in the CBD for the NT Government. Robertson Barracks. low scale suburban private residential developments. all contributing to keeping the market afloat. should open up Commercial construction in the CBD in the next 12 months. the gas and construction markets will benefit directly. and subsequent government and insurer offers. The latest numbers are that 6. where there is a current over-supply. and several medium-rise.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
The impact of the Canterbury earthquakes on Christchurch construction still remains to be felt to the fullest extent expected. Levels of construction activity remain low. are now providing certainty for affected homeowners. With confirmation of Inpex's investment in the construction of a major gas project. This. The few new opportunities are subject to reasonably competitive tendering. while biding time until the announcement of the final investment decision from Inpex. In non-residential construction. With the exception of certain trades and ongoing repair work. Major projects progressed in the past year include works at Royal Darwin Hospital. This is expected to flow through to higher levels of construction activity in 2012 and beyond.540 homes are already determined to be in the residential Red Zone. This is likely to continue over the first half of 2012 as insurance and regulatory issues are resolved. along with decisions on the draft City Plan. The current expectation is that the CBD cordon will be removed by April 2012. there remains little opportunity for the anticipated rebuild to get underway.
Darwin's construction market has received a boost from the recent award of the construction contract for the NT Secure Facility project. The residential market has been moderately active. In addition there are tens of thousands more in the residential Green Zone awaiting substantial repairs or rebuilding. Consequently. The tender market has been very competitive. 908 in the Orange zone (further investigation required) and a further 3. however. the tender for the construction of the Marine Supply Base project has also recently been awarded. In addition. Charles Darwin University. through a number of low cost housing initiatives initiated by the NT Government. while other sectors will benefit indirectly through downstream and supply channels.700 in the White Zone (geotech reports required).
. which contributes to wider ranges in tender pricing. Again. compared to the June quarter. tender pricing remains tight. The Melbourne residential construction market continued to exhibit resilience. The new Enterprise Bargaining Agreement shows labour cost increases upcoming. the largest quarterly increase since the second quarter of 2010. However.6% in the September quarter (following falls in both the March and June quarters). The total volume of non-residential Work Done steadied in the September quarter after more than 18 months of decline. The high Australian dollar continues to offset imported materials cost increases. but these are largely being absorbed through discounting of margins. rising 6. Generally. are less keen. representing the largest quarterly decline since December 2008.4% respectively.4% in the September quarter. many within the construction sector.2% and 5. posting a 3.3% increase in volume of Work Done for the September quarter. including developers. The volume of Work Done in new houses and apartments rose 2.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
Although no definitive downward trend in activity has been evident in Melbourne. while softening demand may be squeezing locally sourced materials suppliers’ margins. are proceeding cautiously amid the ongoing general economic uncertainty. although some contractors. financiers and contractors. as they slipped 8.7% compared to the June quarter. Public Sector Work Done was up 3. while private Work Done rose 8. having already secured reasonable forward workload.4%. non-residential approvals figures suggest that sentiment is less than bullish.8% after four quarters in negative territory. residential building approvals fell 8.
Previous RLB reports comment on Sydney’s high level of price discounting. Refurbishment of existing buildings continues to attract interest in feasibility studies. a large spread of tender prices is still common. with a strong pipeline of future work above the $70 million cut-off. Any sustained increase in new residential work has yet to materialise. Assessing cost implications for projects commencing in the second half of 2012 will be particularly difficult due to the implementation of the planned carbon tax changes to operate from July 2012. inner city redevelopment and infrastructure upgrade. Relatively stable prices are expected to be maintained for the first quarter of 2012. Aged Care and Health Sector projects do offer new opportunities.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
The dual-faceted nature of the Western Australian market persists. in respect of both lending conditions and lengthy approval processes. Builders and consultants with a conventional construction focus in Perth and the South West are generally ‘doing it tough’. The raising of finance for private sector projects remains an issue for developers. however. and there are likely to be several project ‘starts’ in the near future. and the reach of the fly in / fly out programme has extended further across Australia to attract workers from a much greater catchment. These are predominantly State Government funded projects in health. third quarter figures recorded a 15% increase above second quarter results. The value of ABS Building Approvals for the second quarter of 2011 was 11% below the first quarter. and in the latter half of 2011 a number of trades. Non-residential work continues the recent trend of declining opportunities. Construction work in the North West continues to expand. from a high in 2008 and margins continue to be squeezed. there is a renewed focus on developing improved housing and social infrastructure to encourage greater permanent residential settlement for the long term development and benefit of those communities. justice. as the booming resources-based northern areas contrast starkly with the Perth metropolitan area. but will start to emerge during the first quarter of 2012. such as structure and services. although rates for A-Grade and Premium grades are 2% to 3% below average. The picture is slightly different for the limited sector of the market that is able to pursue major projects. the continuing decline of vacancy rates in the premium office market has redirected the attention of commercial developers toward this sector. while the engineering sector is also experiencing variable workload. sport & recreation.
. which may lead to new opportunities. Tender results are frequently below budget. have experienced further discounting. In addition. Construction costs have remained level or have fallen progressively for three years. In response to State Government initiatives and also strong pressure from the communities. Office vacancy surveys are reporting overall commercial office vacancy rates of 6% to 8%. with very competitive tendering. However.
The construction industry in Sydney continues to experience uncertain market conditions. The range of opportunities in the North West continues to grow and the cost differential between this area and the rest of the State will inevitably widen further in 2012.
Wellington. New Zealand
Supply merchants have advised of slightly reduced volumes from last year and are not predicting any uplift for 2012.
. Increased workload relating to seismic strengthening works and leaky building repairs are coming through at present and will be a focus for construction activity over the next few years. Consent numbers remain low and we await a possible upturn. Contractors are reducing labour forces or re-deploying them elsewhere around New Zealand. without seeing any dramatic rises in activity. Residential construction has remained steady in the area. following the end of the Rugby World Cup and the re-election of a National-led government. with only a few cranes on the horizon.INTERNATIONAL REPORT
MARKET INTELLIGENCE OCEANIA
The commercial construction market in Wellington has slowed considerably over the last few months. These works are not large in value but the steady volume should keep a reasonable workforce employed for the near future.
200 2.885 3.400 3.100 3.550 1.200 3.950 1.645 2.240 1.240 1.885 1.390 17.885 3.160 7.240 755 970 1.850 10.500 2.500 6.600 2.815 1.185 1.230 2.880 10.520 2.740 4.800 1.100 2.C.770 1.500 2.325 2.420 2.800 2.420 4.000 11.000 2.615 3.345 1.950 2.150 2.025 1.600 1.940 2.060 3.380 14.505 1.800
ReTaIL gRaDe a MaLL LOw HIgH STRIP SHOPPINg LOw HIgH
12.500 16.585 1.605 2.180 2.150 204
6.550 4.100 2.370 8.530 6.775 1.120 2.900 5. climatic conditions.505 2.890 2.000 6.115 2.505 1.000 18.000 NA 900 12.000 2.330 2.500 1.565 1.150 9.300 4.200 11.200 9.
RaNge OF COST PeR M2 OF gROSS FLOOR aRea OFFICeS PReMIuM LOCaTION aSIa BEIJING GUANzHOU HO CHI MINH CITY HONG KONG JAKARTA KUALA LUMPUR MACAU MANILA SEOUL SHANGHAI SHENzHEN SINGAPORE TOKYO eMea BIRMINGHAM BRISTOL ABU DHABI DUBAI LONDON MANCHESTER OCeaNIa ADELAIDE AUCKLAND BRISBANE CANBERRA CHRISTCHURCH DARWIN MELBOURNE PERTH SYDNEY WELLINGTON uSa BOSTON DENVER HONOLULU LAS VEGAS LOS ANGELES NEW YORK PHOENIX PORTLAND SAN FRANCISCO SEATTLE WASHINGTON D.775 2.330 1.000 15.160 2.550 3.900 5.600 NA 2.070 3.015 2.870 3. standards of specification.000 93
NOT AVAILABLE AT PRESENT
.900 2.205 2.330 2.400 10.550 16.600 5.400 NA 93
10.155 2.550 6.635 1.780 4.000 2.875 5.520 RMB RMB VND ('000) $HKD RP ('000) RINGGIT MOP PHP KRW ('000) RMB RMB $SGD YEN ('000) 7.300 2.700 2.200 2.290 700 860 1.800 1.000 11.700 6.800 14.800 3.025 2.200 1.030 1.200 2.900 219 10.900 23.400 2.500 249 11.100 1.550 1.950 31.205 1.850 3.520 NA NA NA 1.240 1.990 12.765 2.900 7.505 1.000 3.400 3.100 2.300 7.250 NA 1.500 2.990 3.430 3.700 4.200 1.455 1.980 3.260 1.000 1.200 23.900 21.100 1.950 2.830 1.690 1.050 960 1.075 1.330 2.990 1.INTERNATIONAL REPORT
The following data represents estimates of current building costs in the respective market.840 2.300 1.100 2.345 3.745 3.530 3.045 2.500 1.200 2.145 3.530 4.300 2.500 7.560 1.300 1.900 3.015 3.025 805 1.150 1.500 2.500 3.750 2.185 1.850 3.250 3.800 2.505 1.100 2.200 6.760 1.775 1.600 14.290 1.400 2.475 2.600 3.370 1.290 1.050 1.400 20.750 1.250 1.130 1.980 2. market conditions etc.255 2.750 3.900 10.020 2.940 1.670 1.400 1.600 3.900 25.720 1.780 1.455 AUD NzD AUD AUD NzD AUD AUD AUD AUD NzD 2.010 1.400 1.155 1.750 6.100 31.000 6.260 1.880 3.620 11.600 1.600 35.550 810 810 NA NA NA 810 1.060 1.905 1.520 1.000 3.950 6.300 43.550 NA GBP GBP AED AED GBP GBP 1.450 6.200 9.560 1.050 7.390 1.200 8.300 1.000 3.260 3.750 NA 204
17.500 23.350 6.800 5.500 1.750 249 8.560 1.720 1.185 1.750 11.600 329 6.130 1. Costs may vary as a consequence of factors such as site conditions.000 13.150 22.720 2.500 2.000 20.300 3.290 860 1.300 1.370 2.600 32. NA: NOT AVAILABLE USD USD USD USD USD USD USD USD USD USD USD 2.770 2.045 970 700 1.700 15.900 1.100 2.800 4.500 19.670 19.600 1.775 2.300 18.900 10.600 6.150 18.000 25.290 1.530 2.000
7.240 1.050 7.600 27.950 3.000 2.
200 5.200 1.020 26.850 1.050 94
5.700 1.550 2.850 3.445 2.000 NA 16.400 4.455 1.300 3.650 4.400 60.800 1.415 2.990 3.250 3.430 6.925
2.900 2.600 3.450 455
4. measured to outer face of external walls.800 8.000 7.185 1.250 2.050 750 900 940 1.700 11.500 4.080 16.680 1.100 2.750 2.700 14.025 645 915 915 645 915 970 915 805 1.115 3.000 1.500 1.075 2.900 4.000 21.200 28.300 940 6.300 5.730 3.300 15.200 3.960 4.800 2.900 8.500 4.345 1.250 25.420 1.900 2.075 1.380 3.350 11.300 20.900 2.080 1.400 1.580 4.750 9.600 2.800 2.030 900 1.270 3.700 3.100 5.505 860 1.130 2.250 501
9.300 2.075 1.500 16.300
610 610 2.100 8.075 915 1.500 1.300 5.250 14.100
2.150 2.150 2.130 2.700 710 3.650 2.740 3.500 375 305
610 750 3.215 1.400 1.700 2.150 3.100 2.480 1.500 4.200 4.000 1.600 1.475 755 700 1.970 14.150 2.800 11.700 950 NA 17.800 249
6.900 2.300 1.600 600
HOTeLS 5 STaR LOw HIgH 3 STaR LOw HIgH
INDuSTRIaL waReHOuSe LOw HIgH
ReSIDeNTIaL MuLTI-STOReY LOw HIgH
BaSeMeNT LOw HIgH
2.800 3.450 180
3.000 9.075 1.345 1.185 1.770 9.850 18.500 1.020 4.015 5.800 1.785 2.500 7.185 1.800 1.900 2.320 2.620
330 330 1.500 2.045 1.990 2.900 1.340 16.150 8.290 1.400 10.530 1.800 52.800 10.000 2.720 1.520
2.000 17.500 42.245 4.600 34.600 NA 20.430
1. measured to outer face of external walls and inclusive of covered basement and above ground parking areas.900 2.100 910 1.500 15.635
1.260 1.420 2.690 1.150 6.500 1.690 1.250 7.475 2.800 1.150 2.720 1.865 4.475 4.200 15.400 1.500 26.800 3.400
NOT AVAILABLE AT PRESENT
.400 1.635 2.200
600 630 675 555 635 600 900
1.615 2.320 32.885 2.990 540 655 685 600 500 1.200 4.185 1.550 6.520 1.600 3.075 1.400 4.050 314
12.990 3.950 6.785 3.000 3.800 8.600 2.500 570 2.100 2.795 3.INTERNATIONAL REPORT
Rates are in national currency per square metre of Gross Floor Area except as follows: Chinese cities.700 3.
RaNge OF COST PeR M2 OF gROSS FLOOR aRea CaR PaRKINg MuLTI STOReY LOw aSIa RMB RMB VND ('000) $HKD RP ('000) RINGGIT MOP PHP KRW ('000) RMB RMB $SGD YEN ('000) eMea GBP GBP AED AED GBP GBP OCeaNIa AUD NzD AUD AUD NzD AUD AUD AUD AUD NzD uSa USD USD USD USD USD USD USD USD USD USD USD 645 430 700 540 645 700 430 700 755 700 590 970 755 1.130 700 915 1.075 1.100 281
11.035 3.400 2.940 2.075 915 860 860 645 1.600 5.300 4.850 45.500 1.300 3.690 1.175 2.000 2.500 2.100 2.950 4.560 1.185 1.740 2.225 1.315
3.235 3.400 2.100 2.500 1.800 4.800 11.800 48.530 1.500 1.990 1.680 2.400 3.700 2.100 2.500 750 610
810 850 2.800 1.345 1.000 378
16.600 1.075 2.305 3.400 3.500 2.315 1.305 2.500 4.505 1.030 4.070 21.850 1.100 1.000 1.775 4.200 27. Macau and Singapore: All hotel rates are inclusive of Furniture Fittings and Equipment (FF&E).045 1.290 1.600 13.635 2.310 4.000 2.060 1.110 1.615 1.235 2.620 1.300 12.880 7.250 125
3.925 2.645 2.455 755 1.000 3.300 4.100 3.900 740 4.000 980 1.600 725 610
1.300 1.900 5. Hong Kong.455 1.500 6.520 4.450 11.400 1.025 2.315 2.720 1.370 1.290 1. Chinese cities.990 4.200 2.505 1.100 22.200 3.750 1.110 990 900 1.035 1.000 9.450 3.100 6.125 900 900 695 1.900 1.850 NA
5.850 4.750 5.830 1.455 755 1.075 540 755 970 590 805 860 805 755 1.700 1.250 7.000 26.750 12.800 3.950 NA
NA 14.100 2.500 21.200 3.000 650 94
305 450 1.500 1.450 3.100 10.215
1.690 3.700 15.280 5.650
2.100 3.830 2.600 625 550 600 680 1.900 8.320 3.200 19.880 2.900 5.800 4.250 11.500 3.365 1. Hong Kong and Macau: Rates are per square metre of Construction Floor Area.400 11.025 1.300 1.700 11.075 1.990 2.100 21.300 1.000 8. Singapore: Rates are per square metre of Construction Floor Area.200 4.050 3.740 2.750 975 810
1.385 3.355 3.
aSIa BEIJING GUANGzHOU HO CHI MINH CITY HONG KONG JAKARTA MACAU MANILA SEOUL SHANGHAI SHENzHEN SINGAPORE TOKYO eMea ABU DHABI BRISTOL DOHA DUBAI LONDON MANCHESTER SAUDI ARABIA SHEFFIELD OCeaNIa ADELAIDE AUCKLAND BRISBANE CANBERRA CHRISTCHURCH DARWIN MELBOURNE PERTH SYDNEY TOWNSVILLE WELLINGTON NA: NOT AVAILABLE NA HOuSeS aPaRTMeNTS OFFICeS INDuSTRIaL ReTaIL HOTeL CIVIL
LOCaTION aMeRICaS BOSTON DENVER HONOLULU LAS VEGAS LOS ANGELES NEW YORK PHOENIX PORTLAND SAN FRANCISCO SEATTLE WASHINGTON D.C.
CONSTRUCTION MARKET ACTIVITY CYCLE MODEL
PeaK gROwTH ZONe
PeaK DeCLINe ZONe
MID gROwTH ZONe
MID DeCLINe ZONe
TROugH gROwTH ZONe
TROugH DeCLINe ZONe
ASIA CONSTRUCTION SECTOR BAROMETER
100% 90% 80% 70% 60% 50%
EMEA CONSTRUCTION SECTOR BAROMETER
100% 90% 80%
1 4 7 7 4 6 3 4 2
APARTMENTS OFFICES INDUSTRIAL
1 2 3
60% 50% 40% 30% 20% 10% 0%
40% 30% 20% 10% 0% HOUSES
7 5 4 4 5
HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL
OCEANIA CONSTRUCTION SECTOR BAROMETER
AMERICAS CONSTRUCTION SECTOR BAROMETER
1 1 3 5 1 1
90% 80% 70% 60% 50%
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% HOUSES
11 10 10 8 10 10
10 8 6 8 7
40% 30% 20% 10%
APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL
0% HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL
2 % 9.436 2.663 N/A 0.275 1.1 % N/A 2008 5.6 % YeaR 2010 10.3 % 9. the base year is country-specific.3 % 2009 1.673 4. GDP per Capita: Gross domestic product per capita.827 0.0 % 2012 (F) 9.049 5.682 N/A 2.050 3. dollar Sources: IMF and RLB DeFINITIONS GDP: Gross domestic product.564 3.3 % 9.2 % 2011 (P) 1.673 4.997 0.035 2.2 % 8.492 1.131 3.8 % 5.5 % N/A 2012 (F) 3.662 3.9 % N/A 2011 (P) 3. Data derived by dividing constant price GDP by total population.6 % 14.695 1. which renders purchasing power identical to the international dollar.8 % $58.512 1.583 N/A 1.3 % $60.593 0.773 0.5 % 6.040 2.7 % $58.9 % 2012 (F) 1. PPP rate: Purchasing Power Parity rate of exchange.S.5 % 2008 0.502 0.6 % 8.543 1.178 0.673 4.774 12.771 3.6 % $57.466 YUAN 6.6 % $57.0 % 12.1 % 7.4 % 2008 2.6 % 10. Exchange rates are quoted as currency units per U.3 % 4.3 % 4.414 3.INTERNATIONAL REPORT KEY STATISTICS
auSTRaLIa 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 AUD PER USD) PPP RATE INFLATION UNEMPLOYMENT CHINa 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 CNY PER USD) PPP RATE INFLATION UNEMPLOYMENT uNITeD aRaB eMIRaTeS 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 AED PER USD) PPP RATE INFLATION UNEMPLOYMENT euRO ZONe 2007 GDP GDP PER CAPITA (INT $) EXCHANGE RATE (AS AT 1 DEC 2011 EUR PER USD) PPP RATE INFLATION UNEMPLOYMENT 2.673 4.933 3.679 3.3 % 4.9 % $32.0 % 2012 (F) 3.5 % N/A 4.822 5.975 1.851 3.762 N/A 1.440 YUAN 4.523 2.8 % 5.5 % 11.673 5.092 YUAN 7.624 4.1 % 2011 (P) 9.4 % $57.793 N/A 3.0 % 2008 9.0 % YeaR 2010 2.3 % N/A 2009 -3.3 % 7. GDP in constant national currency per person.8 % AED 126.683 3. Annual percentages of constant price GDP are year-on-year changes.3 % 4.526 YUAN 6.5 % 5.9 % 4.588 YUAN 6. Rate against the International dollar (USD).214 11.3 % AED 126.7 % $32.6 % $33.030 1.8 %
NOTeS Estimates after 2010.564 3.7 % 4.335 4.2 % AED 125.759 -0.2 % 2009 9.741 N/A 2. constant prices (Annual percent change).2 % AED 125.827 3.494 4.5 % 4.0 % 2011 (P) 1.4 % $33.481 0.7 % 9.4 % 4.1 % $31.404 3.3 % 10. Inflation: Consumer Price Inflation Unemployment: Percentage of total workforce Exchange Rate as at December 2011
.6 % 2009 -4.3 % YeaR 2010 3.137 1.045 1.095 1.8 % 4.975 5.823 YUAN 6.468 1.8 % $34.6 % AED 138.188 1.3 % AED 137. constant prices (National currency).6 % N/A YeaR 2010 1.
409 0.093 1.9 % $43.456 1.8 %
-4.0 % 4.9 % 2.3 % $58.7 % £22.983 0.8 % 2009 2.4 % 2012 (F) 3.1 % $31.6 % 2009 8.000 3.318 1.8 % $48.000 1.328 1.744 1.000 3.3 % $43.2 % 2009
YeaR 2010 1.000 1.348 1.8 % $51.4 % 7.637 0.9 % 4.259 1.211 0.3 % 9.6 % £21.770 1.6 %
-2.2 % 2009 2.8 %
2012 (F) 1.3 %
-3.974 1.000 -0.698 2.037 2.2 %
2011 (P) 5.3 % 7.665 0.4 % £21.582 4.604 0.1 % 2.0 % 9.283 1.680 4.000 1.2 % YeaR
2010 14.6 % 2008 -0.5 % 7.1 % 7.834 1.7 % 2.6 % 3.667 3.000 1.816 1.007 1.1 % 6.370 0.7 % 5.220 1.1 % £22.648 2.3 %
.4 % 2008 -0.INTERNATIONAL REPORT
New ZeaLaND 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 NzD PER USD) PPP RATE INFLATION UNEMPLOYMENT SINgaPORe 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 SGD PER USD) PPP RATE INFLATION UNEMPLOYMENT uNITeD KINgDOM 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 GBP PER USD) PPP RATE INFLATION UNEMPLOYMENT uSa 2007 GDP GDP PER CAPITA EXCHANGE RATE (AS AT 1 DEC 2011 PER USD) PPP RATE INFLATION UNEMPLOYMENT 1.523 1.6 % 2.966 1.686 4.8 % $42.2 % 9.9 %
2011 (P) 1.3 % $57.7 % 2008 -0.4 % 3.000 1.6 % 9.0 % $42.062 6.5 % YeaR
2010 3.8 % $32.057 2.803 1.396 1.228 1.693 2.8 % $32.0 % YeaR
2010 1.613 2.000 1.7 % $30.452 1.021 1.1 %
2012 (F) 1.569 2.5 % $42.218 0.485 0.094 1.312 1.468 1.122 0.4 % 6.656 2.5 % $41.0 % $30.093 1.000 1.194 1.054 0.5 % 2011 (P) 2.384 1.5 % $50.6 %
2011 (P) 1.000 2.0 % $31.047 3.641 0.000 1.3 % 6.8 % 2.099 2.3 % 5.284 1.653 3.5 % $55.3 %
2012 (F) 4.9 % £20.1 % 2008 1.8 % 5.643 2.6 % 5.1 % £21.
INTeRNaTIONaL CONSTRuCTION COST ReLaTIVITIeS CITY NEW YORK LONDON HONOLULU SAN FRANCISCO BOSTON LOS ANGELES HONG KONG WASHINGTON D. BRISTOL PERTH DARWIN SYDNEY BIRMINGHAM MANCHESTER CANBERRA MELBOURNE ADELAIDE SEATTLE MACAU WELLINGTON DOHA ABU DHABI SINGAPORE TOWNSVILLE PORTLAND OTAGO DUBAI CHRISTCHURCH AUCKLAND LAS VEGAS PHOENIX DENVER RIYADH BRISBANE BEIJING SHANGHAI MUSCAT SHENzHEN GUANGzHOU AMERICAS EMEA AMERICAS AMERICAS AMERICAS AMERICAS ASIA AMERICAS EMEA OCEANIA OCEANIA OCEANIA EMEA EMEA OCEANIA OCEANIA OCEANIA AMERICAS ASIA OCEANIA EMEA EMEA ASIA OCEANIA AMERICAS OCEANIA EMEA OCEANIA OCEANIA AMERICAS AMERICAS AMERICAS EMEA OCEANIA ASIA ASIA EMEA ASIA ASIA JaN-12 155 142 137 137 134 125 124 123 117 117 117 113 112 112 111 108 106 105 102 99 99 99 98 98 98 96 96 95 94 94 92 92 91 91 88 86 85 77 76
selection of materials and finishes has been informed by our Corporate Responsibility policy. CA Seattle. DC
RIDeR LeVeTT BuCKNaLL – ReSPONSIBLe MaNageMeNT As a global provider of construction and property advice we recognise that we can make a real difference to our environment.
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