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CONSTRUCTION MARKET INTELLIGENCE
OCEANIA REPORT
Fourth Quarter 2013
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 September 2013. National statistics are derived from the Australian Bureau of Statistics (ABS) and Statistics New Zealand.
Cover: Brisbane, Australia
Rider Levett Bucknall continues to build on its research capabilities providing timely snapshots of construction market
conditions and price movements across the globe.
The RLB Crane Index™ is being published on a six monthly basis. By counting the crane's populating the skylines of our
major cities, the Index gives a quick and simple indication of the strength of the construction economy.
We recently sponsored the World Architecture Festival in Singapore. A number of RLB projects at home and abroad
were award recipients with the Brisbane River Ferry Terminals and The Australian Garden in Melbourne featured in this
report.
Nominations are now open for the Property Council of Australia Rider Levett Bucknall Innovation & Excellence Awards
and the Property Council New Zealand Rider Levett Bucknall Property Industry Awards.
In recognition of achievement in commercial property excellence, we will again sponsor these prestigious national
awards programs, heralding the achievements of the sector.
We take great pride in presenting the Australian Winner and the Supreme Award – the most prestigious Awards for
worthy property developments in Australia and New Zealand.
Past winners of these awards have become benchmarks for excellence in the commercial property industry, ensuring
high standards of commercial viability and satisfaction of the needs of owners, investors, developers, managers
and users.
We encourage you to nominate your properties to enter the 2014 awards.
For more information visit www.rlb.com/news
INDEPENDENT CONSULTANTS, LOCAL KNOWLEDGE AND ExPERTISE, GLOBAL NETWORK
RIDER LEVETT BUCKNALLRider Levett Bucknall is an independent property consultant, providing advice focused on the cost, quality and sustainability of the built environment. It has over 3,500 staff operating from more than 120 global offices.
The firm’s philosophy is to combine global best practice with local know-how, utilising the latest cost data and innovations to deliver full property solutions for clients across a number of sectors. Services provided include Cost Consultancy, Project Management and Advisory.
THE OCEANIA REPORTThe RLB International Report is published twice-yearly and provides detailed regional and local construction market intelligence and data compiled from our network of offices.
CONsTRUCTION MARKET INTELLIgENCEThe Oceania Report is supplemented by a bi-annual International Report, quarterly NZ Forecast and annual Riders Digest.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 3
The Oceania Report, covering Australia and New Zealand, provides
a half-yearly snapshot of construction market conditions and price
movements in Australia and New Zealand, via commentaries and analysis
from RLB directors in each location.
A broad overview of construction market intelligence in Australia is
provided on page 4, followed on pages 6-17 by commentaries from
RLB directors in eight key locations across the country.
An introduction to construction market intelligence in New Zealand
is included on page 19, with detailed commentary for each of three
principal New Zealand markets on pages 20-23.
Tender price trends and tender price relativity analysis are provided on
pages 24 and 25. Data from the foregoing analysis informs the market data table, shown on page 25, which tracks tender price movement since
2003 and forecasting out to the end of 2014.
RLB's construction market activity cycle model, on page 26, shows our
view of levels of activity in each of seven sectors of the construction
industry, in terms of relative levels of activity within an economic cycle.
These views are analysed numerically in the charts shown on page 27.
The Oceania Report is a member of a suite of reports produced by RLB.
Currently, the suite comprises the Caribbean, European, Gulf States,
Hong Kong and China, Oceania, Singapore, USA and Vietnam reports, as
well as the International Report, which is a global overview document.
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 rlb.com. The RLB Intelligence smartphone app
and the desktop webapp, available at rlbintelligence.com, features
international construction relativities, historical and forecasted RLB
tender price index and a construction cost indicator.
OCEANIA REPORT
Rider Levett Bucknall | Oceania Report – Fourth Quarter 20134
CONSTRUCTION MARKET INTELLIGENCEAUsTRALIA
The Australian economy is now in
its twenty second consecutive year
of economic growth including the
period of the Global Financial Crisis.
The increase in mining sector activity
over this period, primarily driven by
urbanisation in China, has allowed
Australia to maintain this prolonged
period of economic growth.
However, as the capital intensive
mining investment phase has
reached its peak and transitions into
the extraction and production phase,
Australia’s economy will face a more
challenging time. The economy will
need to rebalance its growth drivers,
so that the residential sector and
non-mining business investment
takes over the recent reliance on
mining capital investment. This
transition will not be without some
pain and the fragility in both business
and consumer confidence underlies
the difficulties ahead.
The outcome from China’s
Communist Party Plenum planned for
November 2013 could have dramatic
influences on the Australian and New
Zealand economies in the future. The
world’s eyes have been on the US
politics these past few weeks, but
what's going on in China could have
greater implications for Oceania.
The United States’ national savings
are about US$2.7 trillion, in China
they amount to US$4.2 trillion. If this
capital is allowed to be ‘exported
legally’, there could be significant
Chinese investment hitting global
markets. A proportion of such
investments would presumably find
its way to our region in the years
ahead.
China's expanding middle class is
increasingly seeking to educate its
children to schools abroad. Their
money, if it's allowed to follow their
children, will probably not go into US
Federal Bonds like China's foreign
exchange reserves, but rather will
go directly into property markets in
Australia, New Zealand, United States
and United Kingdom or listed shares
around the world, potentially driving
up prices.
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The Reserve Bank of Australia
(RBA) noted in its October 2013
meeting, that recent domestic
data had broadly come in line with
its expectations. The Australian
economy is growing below trend and
conditions in the labour market are
soft. The RBA noted that “consumer
confidence was above average
levels and business confidence had
increased, although it remained to
be seen if this would be sustained.” It
stated that “the effect of low interest
rates was evident across a range of
indicators and had further to run.”
The RBA cited the housing market,
both prices and leading indicators
of dwelling investment, as evidence
of this. On a more positive note,
the RBA indicated improvement
in prospects for investment in the
tourism sector and that retail sales
picked up in September.
Construction work continues to
display long term growth from a
historical perspective. In all mainland
states and territories, construction
work is higher than decade averages.
Furthermore, there remains a
significant gap between the
strongest and weakest performing
states. Looking at the past twelve
months however, total Australian
construction work done has declined
comparing the (6) six months to
June 2013 to the (6) six months to
December 2012.
In Tasmania, overall new construction
work completed is 9.7% below
its decade average. By contrast
construction work done in Northern
Territory was 72% above its decade
average, followed by Western
Australia (up 65%) and Queensland
(up 45%) mainly due to significant
increases in mining and engineering
construction work.
auStraLIa VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
auStraLIa VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-20%
5%
-10%
0%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 5
Whilst we have seen the peak in
mining investment, we believe
the total ongoing investment in
the mining sector will stabilise
for the present. Numerous long-
term liquid natural gas (LNG)
projects are currently underway
in Northern Territory and Western
Australia. These developments
are still in the capital intensive
phase of establishing facilities and
infrastructure. There are at present
no new significant new mining
developments being commenced.
The modest decline in engineering
construction activity over recent
periods rather than a sharp fall fits in
with this mining investment plateau.
Therefore, negative influences
on gross domestic product
(GDP) growth from falling mining
investment are still some way off.
This means that the non-mining
economy has more time to make
a pronounced pick-up. Western
Australia often bears the brunt of
negative commentary surrounding its
past strong mining sector so it was
positive to see a lift in engineering
construction by 4.3% in the State
over the quarter. LNG construction
in Northern Territory is boosting
Territory outcomes, with engineering
construction activity lifting by 6.7%
over the quarter.
Strong population growth, by
way of higher birth rates and net
migration inflow, is adding to strong
housing demand in all states. At
the same time, a significant level of
residential underbuilding over the
past few years has led to “excess
demand” for dwellings in Australia.
Demand for dwellings has averaged
around 170,000/year over the past
decade, however, supply of dwellings
(construction) has run at around
154,000/year. The Australian capital
city-average dwelling price increased
5.5% in the year to September 2013,
according to RP Data-Rismark. This
is a significant improvement on the
1.2% decline in the year to September
2012, with lower interest rates
boosting affordability.
The outlook for housing construction
has improved across Australia.
Dwelling starts are above decade
averages in (5) five of the states
and territories and construction
commencements in (6) six states and
territories are above levels of a year
ago.
The Northern Territory had
residential commencements almost
52% above decade averages. In New
South Wales, dwelling starts in the
June quarter were up 19% on the
‘normal’ or “decade average” level
with starts in Western Australia up
almost 14% on decade averages and
Victoria up 0.8%.
At the other end of the scale,
Tasmanian dwelling starts were 37%
below decade averages, while starts
in the June quarter were 20% down
on a year earlier.
Director Stephen Ballesty
+61 2 9922 2277
Rider Levett Bucknall | Oceania Report – Fourth Quarter 20136
Location inteLLigenceAUSTRALIA
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 7
Brisbane Ferry Terminals Post-Flood Recovery (Australia), designed by
Cox Rayner Architects won the Future Projects Infrastructure category at
the 2013 World Architecture Festival.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 20138
Location inteLLigenceAUSTRALIA
ADELAIDE The South Australian economy has
been through challenging times,
with its key manufacturing sector
under continual pressure from
the persistently high Australian
dollar. However the recent fall will
provide some welcome relief for
the manufacturing sector and other
export oriented sectors, including
education, tourism and agriculture.
House prices in South Australia
have stabilized over the past year,
although the recovery has been less
pronounced in comparison to other
states.
The ABS also points to a sluggish
housing market in Adelaide, although
recent data has shown improvement.
Slower population growth and a
softer labour market in comparison
to other states have likely
contributed to the weaker housing
growth in South Australia.
Although residential building has
been weak, South Australia is not
facing the same shortfall in the
supply of housing like other states.
This has been thanks to an extended
period of strong building activity
in the early 2000s. Additionally,
a pullback in migration flows has
dampened the underlying demand
for housing in South Australia.
Moving forward lower interest rates
will help to support the housing
sector.
In commercial construction, activity
is continuing to be led by the AU$1.8
billion Royal Adelaide Hospital, where
work is expected to continue through
to 2016. Abstracting from the Royal
Adelaide Hospital, however, the near-
term pipeline is limited.
Major projects in construction include
the AU$400+ million redevelopment
of the Tonsley precinct, AU$350
million Adelaide Convention Centre
Redevelopment, AU$70 million
Savings & Loans Office Development,
with future projects including the
AU$240 million redevelopment of
Skycity Casino and AU$125 million
Adelaide University Integrated
Clinical School and AU$200 million
Uni SA Health and Cancer Research
Building. Difficulties in retail and
manufacturing sectors and soft
employment growth are weighing on
office, retail and factory construction.
There is prospect for improvement
in construction activity with a
falling Australian dollar and lower
borrowing costs, which should
support economic activity. South
Australia’s significant mining
potential indicates that the long-term
prospects for business investment
growth remain promising. Despite
the delay to its expansion project,
Olympic Dam is still resource rich,
and remains a potential source
of investment, employment and
economic activity.
Managing Director Peter Tulla
+61 8 8100 1200
Sa VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
Sa VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-10%
20%
15%
10%
5%
-5%
0%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 9
Location inteLLigenceAUSTRALIA
BRIsBANENon engineering construction work
done over the past 12 months (AU$
15 billion seasonally adjusted) is at
its lowest level since 2005 and the
pipeline of future projects provides
significant concerns. This concern
for future workflow has resulted in
construction costs being at their
lowest level since September 2005,
thus providing a prime opportunity
for developers to commence
construction.
The private sector has failed to
replace the government stimulated
construction and infrastructure
programs from the past few years,
with contractor concerns regarding
diminishing workloads looking to
increase through the remainder of
2013 and 2014.
Margins are still being placed under
pressure with elevated competition
for work. In the context of general
levels of CPI, the lack of a pipeline
of future work will maintain the
cost competitiveness of building in
Brisbane for the foreseeable future.
However, the ability of the industry
to continue to absorb cost increases
from EBA’s, exchange rate and
movements is questionable.
There are signs of optimism in the
residential sector, with interest rate
cuts and the first-time buyer’s grant
commencing to stimulate buyers,
with strong sales in the past (2) two
months.
The inner-city apartment sector,
which is gaining strength and, looking
forward, the State Government have
short-listed (3) three bidders for the
Commonwealth Games Village that
will involve the construction of more
than 1,000 apartments at the village
site.
The non-residential sector has seen
a number of significant projects
committed, including 1 William Street,
180 Ann Street and 480 Queen Street
as well as the expansion of Westfield
Garden City. There are also a number
of potential projects emerging,
including the Queensland Schools
PPP, Grand Central Toowoomba,
Pacific Fair Redevelopment and
potentially four (4) new private
hospitals in South East Queensland.
The State Government is still
supporting the construction industry
with several key projects, including
the Sunshine Coast University
Hospital, Brisbane’s 1 William Street
Office Building, Brisbane Ferry
Terminals and the Gold Coast
Commonwealth Games.
Director Paul Megram
+61 7 3009 6933
QLD VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
QLD VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-50%
5%
-10%
0%
-30%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201310
Location inteLLigenceAUSTRALIA
CANBERRAThe Canberra construction market
will continue to experience lean
times in the short-term, with
more discerning signs emerging
in recent months. Any turnaround
in the construction market will
largely depend on the performance
and agenda of the new federal
government.
The value of non-residential
building approvals has averaged
AU$174m per quarter over the past
(9) nine quarters. The March and
June quarters are well down on
the medium-term averages, being
AU$148 million and AU$109 million
respectively, however, a slight
pickup in the September quarter saw
approvals slightly above the past (2)
two years quarterly averages.
Construction work done has
trended at similar levels over the
past two (2) years, however, the
slowing of approvals will have an
impact on the levels of work done
in the coming years due to the lag
between approvals and construction
commencements.
The residential market had a strong
performance with the number of
residential building approvals in the
(9) nine months up to September
2013. As part of a tax reform policy,
the ACT government has decided
to accelerate the rate of reduction
of conveyance duty. This, combined
with low interest rates, may provide
an impetus to the residential housing
market.
The uncertainty about Public Service
jobs cuts, the possible relocation or
merging of government departments,
and the length of time this is taking
to implement, is affecting confidence
for residential developers. Similarly,
Public Service budget cuts and
efficiency dividends are weighing
heavily on commercial developers
with many taking a “wait and see”
stance. For Canberra, this dip in
confidence is not unusual when there
is a change of federal government.
Director Mark Chappé
+61 2 6281 5446
aCt VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
-20%
20%
0%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
aCt VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-60%
5%
0%
-10%
-20%
-30%
-40%
-50%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 11
Location inteLLigenceAUSTRALIA
DARwINThe Ichthys LNG project is
having positive flow-on effects
to consumption growth in the
Northern Territory economy. The
long duration of the project means
that consumption growth will remain
elevated. Motor vehicle sales remain
high, with general retail sales growth
persistently low. Lower interest
rates are having a positive impact on
housing activity, with higher levels of
housing approvals and lending.
Spending continues to be supported
by high levels of business investment.
Spending will remain at an elevated
level for the next couple of years
while construction activity continues.
LNG plant construction is boosting
building and infrastructure capital
spending. Business investment will
remain at a historically high level
over the next two (2) years.
Territory employment is being
supported by mining construction.
The unemployment rate has risen
over the past few months but
remains below the national average.
Inflation is being driven up by wage
costs associated with the LNG
Ichthys project. As construction
becomes less labour intensive, wage
costs and inflation will slow. Inflation
in Darwin is well above the national
average as a result of wage pressures
from the mining sector.
There is activity on a number of
fronts including major infrastructure,
civil, industrial and residential
sectors, primarily with the major
infrastructure projects paving the
way for growth in the other market
sectors. However, the longer term
job forecast is not as optimistic,
which is resulting in a more cautious
approach to project pricing.
As the market absorbs the current
workload through a mix of existing
capacity and migrating labour
resources, we are seeing lower than
expected price increases which we
anticipate will be under CPI for the
current year. We forecast higher
pricing in the oncoming years.
The fact that the Darwin economy
is performing better than most of
its national counterparts has seen
a net migration and increase in the
workforce, thereby mitigating price
increases resulting from increased
demand for construction resources.
Director Paul Lassemillante
+61 8 8941 2262
Nt VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
Nt VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-80%
20%
-20%
-40%
-60%
0%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201312
Location inteLLigenceAUSTRALIA
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 13
The Australian Garden, Royal Botanic Gardens, Cranbourne VIC designed by
Taylor Cullity Lethlean with Paul Thompson won the Landscape category at the
2013 World Architecture Festival. Photography: John Gollings
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201314
Location inteLLigenceAUSTRALIA
MELBOURNEDue to the diversified nature of
its economy, Victoria has shown
more stability than many of the
other states over the past years
without large peaks and troughs.
While there are several areas of
potential growth, there remains a
number of inherent weaknesses in
the Victorian economy. Tightening
monetary policy from the State
government will continue to restrain
both government spending and
investment for some time. There are
very few public sector investment
projects currently underway and any
projects that may come online will
take a number of years to get up
and running, putting pressure on the
private sector to ensure continuity of
projects.
Lower interest rates and improved
consumer sentiment are expected
to underpin improvement in
the residential property market.
Residential approvals remain at a
relatively high level but are slowing
down in response to the number
of apartment towers commencing
construction and being completed.
High levels of vendor demand
indicates construction levels will
remain strong.
Due to the non-reliance on the
mining industry, Victoria has been
much more resilient to labour
market weakness as a result of
its more diversified industry base.
Employment levels have been strong
with unemployment rates only
marginally higher over the past year.
Even with a large exposure to the
manufacturing sector, employment
levels are holding and wage growth
is contained. The lower Australian
dollar will benefit manufacturing
exports but the fluctuating
currency may lead to uncertainty,
providing more stress on an already
underperforming sector.
We are seeing competitive tendering
within the construction marketplace.
Pricing is tight with minimal pricing
increases seen for the previous six
(6) months. Continuity of work is
seen to be a high priority with a
number of key projects coming
onto the market. Pricing within the
mid-range sized projects (less than
AU$50 million) is competitive, with
the winning of medium-term work
being a priority for builders. Securing
sustainable levels of work for 2014
is a key driver of the minimal pricing
increases we are experiencing.
All market sectors have potential
for strong growth over the next few
years with significant projects being
developed within the retail, industrial,
commercial and civil sectors. Low
interest rates, the bank’s appetite
for debt and general business
confidence will all have an influence
on the outcome of proposed
projects.
We are forecasting a minimal uplift
(almost zero at 0.2%) in tender
prices during 2013, 1.8% in 2014 and
increasing in 2015 to 3%.
Director Mark Lochran
+ 61 3 9690 6111
VIC VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
VIC VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-30%
5%
0%
-10%
-20%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 15
Location inteLLigenceAUSTRALIA
PERTHThe State government has made a
large commitment to major projects
in health and infrastructure including
Perth Waterfront, New Perth
Stadium, Perth City link and new Bus
Station. Private investment in multi-
residential projects and retail appears
to be increasing and financial
institutions appear to be backing a
greater number of projects (albeit
with significant hurdles still in place).
Brief sector summaries are:
• Commercial Offices: a number of
projects have recently commenced
on the back of some pre-leasing
commencements.
• Health: numerous projects, both
public and private, are currently
under construction.
• Residential: shows positive signs
as early activity begins, particularly
in the multi-residential sector.
• Retail: increasing activity with
some new centres and significant
expansion and refurbishment of
existing centres. There appears
to be little activity in strip or
standalone retail.
• Hotels: there are numerous
projects under consideration but
comparatively little ‘committed’
projects at this stage.
• Civil / Infrastructure: continues
to have reasonably high work
volumes. Perth and Jandakot
airports show continual activity.
• Resources sector: although current
activity remains at a high level,
commencement of new projects
has slowed significantly.
Over the past three (3) years
escalation has remained relatively
static due to the influence of lower
than desired work volumes; increased
competition amongst builders; low
tender margins; wages pressures;
and increased value of imported
materials and pre-fabricated
components. We note that over
the last 18 months numerous sub-
contractors and some builders have
experienced financial stress and, in
some cases, failure.
The construction industry in Perth
currently has “surplus capacity” in
most trades and tender pricing is
generally very competitive. This
is particularly so at the small to
medium projects (up to AU$50
million) end of the scale and slightly
less so at the upper end. The known
future projects are predominantly
at the larger end of the scale and
competition for medium and smaller
projects is likely to remain fierce in
the short-term.
For projects with construction values
above AU$80 million, the contractors
have a smaller pool of suitable
sub-contractors to draw on and the
pricing in this sector currently does
not experience the same level of
competition as projects below this
value.
The multi-residential market is
currently showing increased levels
of construction activity and this is
expected to feed construction in this
sector over the next few years.
Currently, structural concrete sub-
contractors for projects in the
higher range appear to have little
surplus capacity due to the recent
commencement of a number of
office towers and residential projects.
Some price pressure on concrete
structural pricing is anticipated for
structural work commencing in the
next six (6) months.
Director Alastair McMichael
+61 8 9421 1230
Wa VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
140%
100%
60%
20%
0%
-20%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
Wa VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-30%
25%
20%
10%
-10%
0%
-20%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201316
Location inteLLigenceAUSTRALIA
syDNEy Our previous cost commentaries in
2013 have reported an increase in
confidence for new projects, both at
the early planning and construction
commencement stages. This
sentiment has continued and recent
economic surveys have confirmed
increasing confidence in the
construction sector within NSW.
Increased residential development
activity in the Sydney market is
now a reality. Proposed residential
developments are achieving presale
commitments which allows financiers
to commence development funding.
Examples of this strong interest are
being regularly reported for projects
near the harbour or major public
transport connections.
The recent released RLB Crane Index
commented upon the increased
numbers of cranes across the Sydney
metropolitan area and that up to
70% of the cranes erected in these
areas are being utilised on residential
projects.
With the information available, it
appears that the current level of
residential activity will be maintained
or increased into 2014. However,
we note the variability in building
approvals as reported by the ABS,
for the residential sector continues to
fluctuate on a month to month basis.
Construction contractors report they
believe there is a capacity within the
industry to service current activity
levels.
The non-residential sector continues
to offer opportunities for smaller
to medium sized contractors. The
last quarter has provided few
opportunities for major projects
exceeding AU$50 million. However,
opportunities in large size projects
are likely to increase in 2014 as
clients complete and confirm pre-
development studies for potential
projects in the commercial, hotel and
retail sectors. For the remainder of
2013, non-residential opportunities
will continue in the industrial, health
and aged sectors of the industry.
The ABS Producer Price Index for
the second quarter of 2013 recorded
an overall 0.6% increase in the
Building Construction Sector. Our
investigations over recent months
have identified selected steel
products have risen 3%, formwork
pricing increases of up to 5% are
beginning to be seen and selected
hydraulic and air conditioning
materials have increased 10%.
With the published forecasts
indicating that construction activity
levels will increase, it would appear
that the period of price stability will
be ending.
One component of the likely rise
in construction pricing is exchange
rate fluctuations of the Australian
dollar against the US dollar falling
over the next six (6) months.
These fluctuations continue to be
of concern due to the increasing
number of construction components
being imported.
Further cost pressures will be
experienced as average annualised
wage increase for the construction
sector continues to exceed 5%
per annum. It appears that these
increases will be passed on by
increased prices, as they can no
longer be absorbed by the Industry.
The construction market in Sydney
will continue to be competitive,
however, due to the possibility of
increased work load, increases in
materials cost and unstable exchange
rates, it is likely the high level of
discounts applied to projects in the
period 2010–12 will be moderated
to some extent in the future. On
projects that are complex or contain
a high level of risk, risk premium
costs are appearing to be included in
contract pricing as contractors seek
to provide a return to shareholders.
Director Bob Richardson
+61 2 9922 2277
NSW VaLue oF BuILDING aPProVaLS(Six month % change, Oct 2012 - March 2013 & April 2013 - Sept 2013)
-60%
20%
0%
-20%
140%
100%
60%
HOUSES APARTMENTS RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH
NSW VaLue oF WorK DoNe (Half yearly % change, 1st half 2013)
-20%
5%
-5%
0%
-10%
-15%
RESIDENTIAL NON-RESIDENTIAL TOTAL
PRIVATE PUBLIC
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 17
Location inteLLigenceAUSTRALIA
TOwNsVILLEThe construction market remains
competitive in Townsville and
North Queensland. While major
projects are being completed at the
Port, CBD, the Hospital/University
Precinct, Defence and suburban
retail, it is the pipeline that is of
concern.
The construction activity lost in these
completed projects is not being
replaced to the same level by new
projects. Contractors are somewhat
concerned by the diminishing
workload. Their margins remain
under pressure and this has seen a
change to the mix of contractors
who maintain offices in the city.
Positive sentiment and business
confidence still remain within the
industry. The newly completed
berths and cruise ship terminal at the
Port and office projects in the city
will bring their own relevant activity
levels and opportunities.
Looking to the future, the purchase
of the old rail yards by the Townsville
City Council was a positive move
for the city. By placing the council
in control of the site, significant
development opportunities, with
strategic links to the CBD and Reid
Park, will arise. Optimism is strong
about the Sports Stadium and
Entertainment Centre development
being proposed in Townsville and the
economic benefits the development
will bring to the region.
Residential building approvals
have seen increased activity in
both the Fitzroy (Rockhampton,
Gladstone and Central Highlands
areas) and the Mackay regions over
the past (2) two years with stable
approvals levels in both the Cairns
and Townville regions. The Fitzroy
region has seen a large spike in non-
residential approvals in 2012-13 (up
75% from 2011-12) and both Mackay
and Townsville have seen increased
approval levels over the past (3)
three years.
The non-residential approvals in
Cairns region have shown declines
over the past three (3) years. Any
reduction in the lag between building
approvals and construction activity
will be vital to the economic growth
in Northern Queensland.
The competitive market brings
opportunity to new projects as
conditions are favourable to
developers on the back of low
construction costs. The rates on the
majority of trades have remained at
similar levels for more than a year
and the competitive conditions will
remain for the short-term at least.
Director Chris Marais
+61 7 4771 5718
aPProVaL VaLue oF reSIDeNtIaL BuILDINGS ($m) 12 months to June 30
aPProVaL VaLue oF NoN-reSIDeNtIaL BuILDINGS ($m) 12 months to 30 June
1,000
600
800
400
200
0CAIRNS
2010/11 2011/12 2012/13
FITZROY MACKAY TOWNSVILLE
800
400
600
200
0CAIRNS
2010/11 2011/12 2012/13
FITZROY MACKAY TOWNSVILLE
Geyser, Auckland designed by Patterson Architects.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 19
CONSTRUCTION MARKET INTELLIGENCENEw ZEALAND
The New Zealand economy is firmly
into an economic expansion. Global
dairy prices have increased to (3)
three year highs, the Canterbury
rebuild is gaining pace, and the
Auckland housing market is
becoming heated due to near-record
low mortgage rates and housing
supply shortages. After years of
restraint and cost-cutting, NZ firms
and household spending is rising.
Just about all of New Zealand’s main
soft commodities are set to show
some improvement at the farm-gate
in 2013-14. The stronger New Zealand
dollar is expected to be of assistance,
however, the major support factors
are supply and inventories remain
tight in many sectors.
Auckland led the cyclical recovery,
accompanied by more jobs, incomes
and spending. Growth in jobs has
stalled, but the region is on an
artificial high due to rapidly rising
house prices and debt. Surging
house prices in Auckland are a risk to
financial and economic stability.
Non-residential building is coming
out of hibernation, led by Canterbury.
The post-earthquake rebuild work is
beginning to accelerate. There is a
broader acceleration in other parts
of the country too. The recovery will
be gradual as risk appetite for new
investments is still low and there
is not much demand for additional
space yet. As the economy grows,
demand is returning and will boost
non-residential construction in 2014
and 2015. Canterbury is leading
the charge across all categories of
building. While the initial surge in
activity was outside Christchurch
city, activity is now picking up most
strongly in the centre. The rebuild
programme should continue to
accelerate over the next year.
Profits in the construction sector fell
during the recession, but are now
beginning to recover. Profitability
worsened as sales fell and profit
margins contracted. Businesses were
hard pressed to pass on increasing
costs in the face of weaker demand.
Many businesses were also loathe to
let staff go, who had been difficult
to secure in the lead up to the
recession. Construction firms became
more cautious about borrowing and
were also helped by lower interest
rates. Profitability is beginning to
recover, but margins remain low. As
the economy recovers, construction
firms’ profitability will improve on
higher turnover, fattening margins
and increased leverage.
NeW ZeaLaND NoN-reSIDeNtIaL CoNSeNtS VaLue(Half yearly % change, 1st half 2013)
-40%
RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH TOTAL
10%
0%
-10%
-20%
-30%
NeW ZeaLaND VaLue oF BuILDING aCtIVIty(Half yearly % change, 1st half 2013)
0.0%
-2.0%
-8.0%RESIDENTIAL NON-RESIDENTIAL TOTAL
2.0%
8.0%
6.0%
4.0%
-4.0%
-6.0%
Geyser, Auckland designed by Patterson Architects.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201320
Location inteLLigenceNew ZealaNd
AUCKLANDAuckland continues to slowly recover
from the recession. The main driver
to this recovery is the residential
housing market. The heat in the
market has forced the Reserve Bank
of New Zealand (RBNZ) to act with
high loan to value mortgages limited
to a 10% ceiling on new lending, as
opposed to the 30% ceiling currently
in place. If these measures do not
cool borrowing, then interest rates
will be raised by the RBNZ. Whilst
central government spending
is reducing, increased private
investment and a steady rise in
residential construction will underpin
the construction sector within
Auckland over the next few years.
Auckland residential building has not
kept pace with population growth
and this, coupled with historically
low interest rates and rapidly rising
house prices, has seen strong growth
in residential building demand. The
government has set a target of
39,000 new homes in Auckland over
the next (3) three years. Increased
residential activity will likely drain
resources particularly with the
Canterbury rebuild happening in
unison and this will inevitably lead to
upward pressure on costs.
Non-residential construction activity
remains subdued with stable but
low levels of work. There is promise
of some major projects within the
Auckland region, however, the
majority of these are still in the early
design phase and will not generate
work for some months. The collapse
of Mainzeal Construction and a major
mechanical services contractor is
evidence of the slow and drawn-
out recovery from the recession. It
has left a shortfall in the number of
large national building contractor’s
operating in New Zealand and
therefore reduced options for clients
with respect to tender lists and
competition on large projects.
The market and associated tender
pricing remains competitive. There
are signs however that prices are
on the rise. Given the lack of work
over the last few years and little
investment in labour and training
the resource pool is constrained.
The volume of work in Canterbury
is pulling both labour and materials,
such as fabricated structural steel,
from Auckland and other centres
around New Zealand. There is a real
risk that once non-residential building
activity increases in Auckland, we will
see demand outstripping supply with
labour shortages and a rapid rise in
construction costs.
Director Brian Dackers
+64 9 309 1074
auCKLaND reGIoN NoN-reSIDeNtIaL CoNSeNtS VaLue (Half yearly % change, 1st half 2013)
NorthLaND aND CeNtraL auCKLaND reGIoN (auCKLaND) VaLue oF BuILDING aCtIVIty(Half yearly % change, 1st half 2013)
-90%
-50%
RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH TOTAL
30%
10%
70%
0.0%
-5.0%
-12.5%RESIDENTIAL NON-RESIDENTIAL TOTAL
-2.5%
5.0%
2.5%
-7.5%
-10.0%
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 21
Location inteLLigenceNew ZealaNd
CHRIsTCHURCHThe Christchurch rebuild has
continued to gain momentum in
recent months with a number of
large projects being confirmed and
Government acquisitions of key
sites well progressed. Christchurch’s
non-residential market conditions
currently remain relatively
competitive with main contractors
still looking to secure projects for the
next 12 months and beyond.
A number of medium sized
commercial projects (NZ$10-50
million) are already underway
with completion anticipated in
late 2014 / early 2015. A couple
of larger projects (NZ$50 million
+) are currently planned for
commencement.
In addition to these, a number of
larger government led projects
are gearing up to let contracts
by the end of the year with work
commencing in the first quarter
of 2014. These include Burwood
Hospital, Justice Precinct and
the CIGA Projects (Government
Accommodation).
The Christchurch City Council is
also preparing to let a contract for
the Town Hall works in the first
quarter of 2014. These projects will
be closely followed by other anchor
projects including the Metro Sports,
Bus Interchange and the Convention
Centre. Combined with large private
developments, we estimate that
there could be in excess of NZ$3
billion worth of non-residential
construction work over the next 4-5
years.
This level of activity is going to
create a number of challenges in
the local market especially around
material supply, labour resources
and subcontractor availability.
The current timeline for the major
anchor projects indicates a peak
period between the end of 2014 to
early 2016. Residential activity has
also continued to grow with the
Earthquake Commission (EQC),
the primary source of natural
disaster insurance to the owners of
residential properties, and insurer
repair programmes ongoing along
with continuing development of new
subdivisions to replace red zone
land. Housing New Zealand have also
committed to 700 new homes by
the end of 2015. With regard to Civil
works, SCIRT have completed over
NZ$200 million of work, a further
NZ$500 million underway and over
NZ$900 million at design stage.
Director Malcolm Timms
+ 64 3 354 6873
CaNterBury reGIoN (ChrIStChurCh) NoN-reSIDeNtIaL CoNSeNtS VaLue (Half yearly % change, 1st half 2013)
CaNterBury reGIoN (ChrIStChurCh) VaLue oF BuILDING aCtIVIty(Half yearly % change, 1st half 2013)
-50%
-25%
RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH TOTAL
0%
25%
0.0%
4.0%
-2.0%RESIDENTIAL NON-RESIDENTIAL TOTAL
6.0%
10.0%
8.0%
2.0%
Regent Park Apartments, Wellington designed by Designgroup Stapleton Elliott.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 23
Location inteLLigenceNew ZealaNd
wELLINgTONThe Wellington market continues
in a reasonably flat pattern and the
tender market continues to remain
very competitive. Margins across all
contracting sectors remains tight,
which is ensuring competitiveness
in securing new work. With the
shallow pool of current and expected
large projects, it is likely that this
contracting market will be with us
well into 2014.
Residential construction has stopped
declining, but still very low in volume.
There are signs of a recovery with
consent levels continuing to increase
slowly, but the recent government
push to increase home loan deposit
levels will have a detrimental effect
on this recovery. House valuations,
in the Central Region, have risen
slightly but prices have remained
relatively static, with good properties
achieving higher sale prices.
Commercial construction in the
Wellington region has increased
slightly from this time last year, but
still at very low volumes and mainly
smaller projects. With a couple of
Richter 6+ earthquakes centred in
Cook Strait recently, we are likely
to see the ongoing strengthening
of older properties continue and
increase in pace into 2014. The
number of large cranes on the
Wellington landscape is small, with
most on new multi-storey apartment
sites.
A few large civil projects, such
as Transmission Gully and Kapiti
Expressway, are currently gearing
up and the Basin Reserve / Buckle
Street tunnel is progressing well. This
will provide some positive outlook
for work in this sector of the market.
Given the lack of large commercial
projects in our region, it is likely that
price discounting will continue to get
stronger and keep cost escalation
under control for some time. Our
forecasting is indicating very limited
growth over the next two years,
with more sustained inputs in 2014-
15 on the back of the workload
appearing in Christchurch. We will
continue to see the strengthening of
older building stock as owners take
advantage of the tighter pricing,
however with the Christchurch
rebuild gaining considerable
momentum, it is hard to see a
sustained recovery in the Wellington
region for some time yet.
Director Tony Sutherland
+64 4 384 9198
0.0%
-5.0%
-20.0%RESIDENTIAL NON-RESIDENTIAL TOTAL
10.0%
5.0%
-10.0%
-15.0%
WeLLINGtoN reGIoN NoN-reSIDeNtIaL CoNSeNtS VaLue (Half yearly % change, 1st half 2013)
WeLLINGtoN VaLue oF BuILDING aCtIVIty(Half yearly % change, 1st half 2013)
-50%
-25%
RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH TOTAL
25%
0%
50%
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201324
Tender Price Index – sydney Base
The tender price index graph shows the changing costs of works over time, relative to
Sydney’s base 100 at January 2000, and is based upon Rider Levett Bucknall models of
CBD/CBD fringe commercial office and residential multi-storey construction.
Tender Price Index – sydney Base
The tender price index graph shows the changing costs of works over time, relative to
Sydney’s base 100 at January 2000, and is based upon Rider Levett Bucknall models of
CBD/CBD fringe commercial office and residential multi-storey construction.
TENDER PRICE TRENDS FORAUsTRALIA/ NEw ZEALAND
AUCKLAND
CHRISTCHURCH
SYDNEY
WELLINGTON
120
100
80
140
160
INDEX (SYDNEY JAN 2000 = 100)
2006JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JANJUL
2007 2008 2009 2010 2011 2012 2013 2014YEAR
SEPT 2013
ADELAIDE
BRISBANE
CANBERRA
DARWIN
MELBOURNE
PERTH
SYDNEY
TOWNSVILLE
145
128
110
163
180
INDEX (SYDNEY JAN 2000 = 100)
2006JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JUL JAN JANJUL
2007 2008 2009 2010 2011 2012 2013 2014YEAR
SEPT 2013
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 25
TENDER PRICE TRENDS FOR AUsTRALIA/ NEw ZEALAND
TENDER PRICE RELATIVITy MATRIx sEPTEMBER 2013
auCKLaND100
ChrIStChurCh100
SyDNey100
WeLLINGtoN100
CHC 108 AUCK 93 AUCK 82 AUCK 93
SyD 122 SyD 113 CHC 89 CHC 100
WELL 108 WELL 100 WELL 88 SyD 113
Source: RLB
TENDER PRICE RELATIVITy MATRIx sEPTEMBER 2013
aDeLaIDe100
BrISBaNe100
CaNBerra100
DarWIN 100
meLBourNe100
Perth100
SyDNey100
toWNSVILLe100
BNE 86 ADE 116 ADE 96 ADE 90 ADE 98 ADE 94 ADE 94 ADE 105
CAN 104 CAN 121 BNE 83 BNE 77 BNE 85 BNE 81 BNE 81 BNE 91
DAR 111 DAR 129 DAR 107 CAN 93 CAN 102 CAN 97 CAN 98 CAN 110
MEL 102 MEL 118 MEL 98 MEL 91 DAR 109 DAR 104 DAR 105 DAR 117
PER 107 PER 124 PER 103 PER 96 PER 105 MEL 95 MEL 96 MEL 107
SyD 106 SyD 123 SyD 102 SyD 95 SyD 104 SyD 99 PER 101 PER 113
TVL 95 TVL 110 TVL 91 TVL 85 TVL 93 TVL 89 TVL 89 SyD 112
Source: RLB
MARKET DATA
rLB teNDer PrICe INDeX SerIeS (% ChaNGe) - SePtemBer 2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (F) 2014 (F) reLatIVItIeS
CIty SePt 2013
aDeLaIDe 8.7 9.2 6.2 5.7 6.2 6.3 -2.8 2.9 -3.2 0.1 1.0 2.0 94
auCKLaND 7.0 10.0 5.0 4.0 1.0 2.0 1.0 0.0 0.0 0.0 1.0 4.6 82
BrISBaNe 8.7 12.4 11.3 8.8 6.3 -7.6 -5.8 -0.7 0.3 0.0 0.9 3.0 81
CaNBerra 5.7 7.2 6.7 6.2 4.7 3.1 1.1 3.4 1.4 -0.6 2.2 3.4 98
ChrIStChurCh 5.9 10.0 4.5 4.0 3.0 1.5 1.5 4.6 3.0 4.7 5.1 6.6 89
DarWIN 8.0 12.0 7.5 9.0 9.0 10.0 3.5 2.0 -11.4 2.0 3.0 4.0 105
meLBourNe 5.2 4.2 3.2 3.2 4.7 1.2 1.7 4.2 3.0 0.0 0.2 1.8 96
Perth 8.0 11.0 8.5 9.0 11.0 -2.1 -6.2 -1.6 1.3 -2.3 2.1 2.5 101
SyDNey 6.0 7.0 4.5 4.5 3.5 4.5 0.0 1.0 2.2 1.2 2.0 3.5 100
toWNSVILLe 11.9 16.4 11.4 9.4 6.4 -4.7 -4.7 0.4 0.5 1.0 2.0 3.5 89
WeLLINGtoN 5.0 9.0 4.8 4.0 3.0 2.0 1.0 1.5 1.0 1.5 2.0 4.1 88
(F) FORECAST
Rider Levett Bucknall | Oceania Report – Fourth Quarter 201326
PEAK gROwTH ZONE
PEAK DECLINE ZONEPEAK ZONE
MID gROwTH ZONE
MID DECLINE ZONE
MID ZONE
TROUgH gROwTH ZONE
TROUgH DECLINE ZONETROUgH ZONE
CONSTRUCTION MARKET ACTIVITy CyCLE MODEL
LoCatIoN houSeS aPartmeNtS oFFICeS INDuStrIaL retaIL hoteL CIVIL
aDeLaIDe
auCKLaND
BrISBaNe
CaNBerra
ChrIStChurCh
DarWIN
meLBourNe
Perth
SyDNey
toWNSVILLe N/A
WeLLINGtoN
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 27
The chart above shows the aggregate numbers of responses from Rider Levett Bucknall Oceania offices, in each of the
three categories, Trough, Mid and Peak Zones
The chart above shows the aggregate numbers of responses from
Rider Levett Bucknall offices, in each of the three categories, Trough, Mid
and Peak Zones, shown as percentages for each of the construction sectors.
MARKET SECTOR MOVEMENT OCEANIA
By AggREgATE NUMBER Of REsPONsEsMARKET sECTOR MOVEMENT - ALL REgIONs
By AggREgATE NUMBER Of TOTAL UPs AND DOwNsMARKET sECTOR MOVEMENT - ALL REgIONs
By TyPE, % AND NUMBER Of REsPONsEs MARKET sECTOR MOVEMENT - ALL REgIONs
TROUGH ZONE
0%
10%
50%
80%
100%
HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL
20%
30%
60%
40%
90%
70%
PEAK ZONEMID ZONE
1
3
7
2
4
5
2
3
6
4
7
1
2
87
2
1
5
4
2
0
35
45
5
10
30
20
25
15
40
NU
MB
ER
OF
IN
ST
AN
CE
S
TROUGH ZONE PEAK ZONEMID ZONE
Trough Growth Zone 42
Mid Growth Zone 22
Peak Growth Zone 12
0
80
100
20
10
30
50
70
90
60
40
NU
MB
ER
OF
IN
ST
AN
CE
S
TROUGH ZONE PEAK ZONEMID ZONE
Green Dn: 5
Red Up: 11
Red Dn: 1
Blue Up: 30
Blue Dn: 12Green Up: 17
Westfield Sydney Retail, Sydney designed by Westfield Design & Construction with John Wardle Architects won
Best Mixed Use Development and Best Shopping Centre Development at the 2013 Property Council of Australia /
Rider Levett Bucknall Innovation & Excellence Awards.
Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 29
CAPEx FORECAST STUDyExIsTINg AUsTRALIAN AssETs
10-yEAR CAPEx fORECAsT By MAjOR AssET TyPEs
The 10-year graph, depicted below, shows the average forecasted capital expenditure (CAPEX) as a proportion of
the total Replacement Cost (RC) of the property asset as at October 2013. The current percentage range of forecast
CAPEX is 1.0% to 6.0% of RC. This is based on RLB experience with existing Australian assets by sector. The graph
reflected below reflects a Year 1 start point of a ‘Very Good’ condition building asset and/or an asset age of less than
10 year, and the stated cost percentage excludes periodic upgrades and refurbishments.
10-yEAR CAPEx fORECAsT (%) ALLOCATIONs fOR COMMERCIAL BUILDINgs
The following 10-year CAPEX charts show the average percentage expenditure allocations for a sample of
existing Australian commercial buildings excluding sustainability initiatives and market re-positioning upgrades.
The allocations for individual assets will vary based on the PCA Grade, age, condition and extent of backlog
maintenance, management strategy and periodic refurbishments.
Source: RLB – NSW’s facilities cost database
OffICEs: yEAR 1 CAPEx OffICEs: yEARs 2-5 CAPEx OffICEs: yEARs 6-10 CAPEx
Building FabricEnvironmental
CodeCompliance
Structure Facade
BuildingServices
Building Services
Code Compliance
Environmental
StructureFacade
BuildingFabric
Environmental
Building Fabric
StructureFacade
Code Compliance
BuildingServices
Building Fabric 39%
Structure Facade 8%
Building Services 43%
Code Compliance 8%
Environmental 2%
TOTAL 100%
Building Fabric 61%
Structure Facade 3%
Building Services 28%
Code Compliance 7%
Environmental 1%
TOTAL 100%
Building Fabric 43%
Structure Facade 7%
Building Services 33%
Code Compliance 17%
Environmental 0%
TOTAL 100%
MODERATE
LOW (1.0%)
$0
HIGH (6.0%)
HOTEL
OFFICE
RETAIL
INDUSTRIAL
YEAR 1 YEAR 2-5 YEAR 6-10
Instant cost data on the spot
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Rider Levett Bucknall Desktop appThe fastest way to get the latest construction cost information right at your fingertips
RLB Intelligence Smartphone appAvailable on iPhone, Android, Windows Phone7 and Blackberry Operating Systems
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Rider Levett Bucknall | Oceania Report – Fourth Quarter 2013 31
OFFICES AROUND THE WORLD
CANADACalgary
CARIBBEANBarbados
Grand Cayman
UsABoston, MA
Chicago, IL
Denver, CO
Guam, GU
Hilo, HI
Honolulu, HI
Kennewick, WA
Las Vegas, NV
Los Angeles, CA
Maui, HI
New York, NY
Orlando, FL
Phoenix, AZ
Portland, OR
San Francisco, CA
Seattle, WA
Tucson, AZ
Waikoloa, HI
Washington, DC
CHINABeijing
Chengdu
Chongqing
Dalian
Guangzhou
Guiyang
Haikou
Hangzhou
Hong Kong
Macau
Nanjing
Qingdao
Shanghai
Shenyang
Shenzhen
Tianjin
Wuhan
Wuxi
Xian
Zhuhai
INDONEsIAJakarta
MALAysIAKuala Lumpur
MyANMARyangon
PHILIPPINEsCebu
Davao
Manila
sINgAPORESingapore
sOUTH KOREASeoul
THAILANDBangkok
VIETNAMHo Chi Minh City
MIDDLE EAsTAbu Dhabi
Doha
Dubai
Muscat
Riyadh
AfRICARLB|Africa Alliance
Botswana
Cape Town
Johannesburg
Mauritius
Mozambique
Pretoria
UKBirchwood/Warrington
Birmingham
Bristol
London
Manchester
Newcastle
Sheffield
Welwyn Garden City
Wokingham
EUROPERLB|EuroAlliance
Austria
Belgium
Bulgaria
Czech Republic
Estonia
France
Germany
Greece
Hungary
Ireland
Italy
Kazakhstan
Latvia
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
Ukraine
AUsTRALIAAdelaide
Brisbane
Cairns
Canberra
Darwin
Gold Coast
Melbourne
Newcastle
Perth
Sunshine Coast
Sydney
Townsville
NEw ZEALANDAuckland
Christchurch
Otago
Palmerston North
Tauranga
Wellington
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