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Third QuarTer 2016

CONSTRUCTION MARKET INTELLIGENCE

INTERNATIONAL REPORT

Rider Levett Bucknall | International Report – Third Quarter 2016

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Cover: Barangaroo, Sydney, Australia

The Rider Levett Bucknall International Report provides 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.

The RLB International Construction Cost Relativity Index is shown on page 4, with each location placed in its ranking spot in respect of all the other locations in the study.

A broad overview of global construction economic issues is provided on page 3 followed by a table of historical and forecasted movements in RLB’s Tender Price Index for 53 key cities on page 5.

Building Cost Ranges and International Construction Cost Relativities are available in the RLB Intelligence Smartphone App and via the RLB Desktop WebApp.

To download our free App visit rlb.com/app or scan the QR code.

Pages 6 and 7 feature Construction Rate Ranges for different key building types in cities within each region, providing an easy cost comparison between locations.

Pages 8 to 10 consider the wider issue of the construction activity cycle for seven building market sectors, in each location, using the RLB Construction Activity Cycle Model to provide an insight into each cities construction sectors position in the market cycle.

Further information can be found at rlbintelligence.com

Key economic data are highlighted on pages 12 & 13. This data describes the historical and projected economic conditions which the construction industry functions within those regions or countries.

From pages 15 to 57, RLB directors provide market intelligence commentary, highlighting the key issues that are impacting on the construction industry in major global cities together with providing information relating to current construction price movements.

GLOssARy OF TERMs

GDP Gross Domestic ProductCPI Consumer Price Indexm o m month on monthy o y year on yearIMF International Monetary FundTPI RLB Tender Price Index


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The IMF’s projection for global growth in 2016 is a modest 3.2% , broadly in line with last year, and a 0.2 percentage point fall from the January 2016 World Economic Outlook Update. The IMF is projecting global growth to strengthen in 2017 and beyond, driven primarily by emerging markets and developing economies, as conditions in stressed economies start to gradually normalize. But uncertainty has increased, and the risk of weaker growth scenarios is becoming more tangible. The recent terror related events in Europe, tension in Turkey, the United States’ upcoming presidential election and determination of the UK’s exit strategy are all placing pressure on growth forecasts.

The rise in the introduction of protectionist measures by some of the world’s leading economies is coinciding with a persistent slowing of growth in the global economy. The World Trade Organisation (WTO) has identified that during 2016, G20 nations have introduced protectionist trade measures at the fastest pace seen since the 2008 financial crisis.

Further increases in protectionism could lead to a less competitive world and greater inflationary pressures.

Five cities within Forbes’s Top 20 Most Liveable cities have introduced tax measures for foreigners purchasing residential properties to assist in the tempering of heated housing markets. These cities include Auckland, Melbourne, Sydney, Vancouver and Wellington.

This could drive down investment and hurt corporate margins and earnings. Consequently, the possibility of an asset price deflationary scenario could arise.

The global construction outlook highlights differing prospects. USA’s economy continues to recover but the upcoming presidential election may have economic consequences in regard to potential realignment of trade agreements. Growth in Europe remains subdued overall, Asia

remains the global growth engine, contributing around two thirds of global growth with China steadily making its transition to a more sustainable growth mode by moving towards a more consumption-driven economy. The Indian economy remains a bright spot, and ASEAN economies have also continued to perform well.

Within the UK there is evidence of a slowing of growth in private residential and commercial schemes as investors and developers take stock of the referendum decision to leave the European Union. A clearer picture has now emerged of the Brexit plan. With further details emerging of the timetable for the exit from the EU and potential impacts, together with the Government’s commitment to infrastructure and affordable housing should have a stabilising effect over the next six months.

The Reserve Bank of Australia’s current monetary policy statement has forecasted very subdued wages growth and very low cost pressures globally, meaning inflation is expected to remain quite low for some time. Australia is still stabilising since the end of the mining boom and the continuing fall in global commodity prices is creating pressure on growth forecasts.

inTernaTional ConsTruCTionGLOBAL OUTLOOK

Within New Zealand, the economy continues to perform well. Economic growth is projected to moderate somewhat to 3.0% in 2016 and 2.7% in 2017. Falling dairy prices and completion of many projects relating to Christchurch’s earthquake-related rebuild will curb activity, although the slowdown in construction will be attenuated by expansion elsewhere in response to high immigration which is also fuelling the growth in private consumption. Inflation is forecasted to rise but stay below target.

Sub-Saharan Africa’s 2015 growth was subdued after more than a decade of solid growth as reported by the IMF, however in 2016 it is forecasted to recover quite moderately. GDP has slowed from 4.6% in 2014 to 3.7% in 2015, the lowest since 2009. GDP is expected to recover during 2016 increasing to 4.6%.


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rlB inTernaTional ConsTruCTionCOST RELATIvITIES

Rider Levett Bucknall’s Construction Cost Relativity Index identifies the relative cost of constructing similar buildings across the globe. The index is based on the local costing of standard building models. These models are costed worldwide using the same quantities and similar specifications. The models are costed in local currencies and relativities calculated using a combination of statistical methods including:

• Conversioninto“onecurrency”methodbyconvertinglocalcurrencymodelcostsusingUSDandIMF’spublishedPurchasing Power Parity (PPP).

• RLBdevelopedEKSmultilateralindex

• RLBRelativityFactor,aweightedsumof“onecurrency”results.

The resultant index highlights the relativity in construction costs between key global cities.

CITIES

50 10075 150125 225200175 250

OSLOHONOLULUNEW YORK

BERLINDUBLIN

LONDONPARIS

SAN FRANCISCOHONG KONG

BRUSSELSROME

BOSTONCHICAGO

WASHINGTON DCLOS ANGELES

BRISTOLAMSTERDAM

MACAUMANCHESTERBIRMINGHAM

MADRIDSYDNEYDARWINSEATTLE

CANBERRADOHA

CHRISTCHURCHPERTH

MELBOURNEABU DHABIPORTLANDADELAIDE

WELLINGTONDUBAI

RIYADHTOWNSVILLE

SINGAPOREMOSCOW

DENVERAUCKLANDBRISBANEPHOENIX

LAS VEGASWARSAW

PRAGUEBUDAPEST

BEIJINGSHANGHAI

GUANGZHOUSHENZHEN

KUALA LUMPURHO CHI MINH CITY

JAKARTA

226190

187179

171

166166

164164

162161

159154

150143

138137137

133129

127127

126123

118118

118

113

118

115

112111110110110109108

107106105105105104

10299

9589

8482

7974

6757


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afriCa 2013 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)CAPE TOwN Np 5.0 6.0 7.0 8.0 4.8 4.8JOhANNEsBuRG Np 8.3 7.2 7.5 8.0 4.8 4.8MAPuTO Np 4.0 4.0 4.0 4.0 4.0 NpPORT LOIus Np 5.0 5.5 6.0 6.0 6.5 6.5PRETORIA Np 8.3 7.2 7.5 8.0 4.8 4.8

ameriCasBOsTON 6.1 5.0 3.5 4.8 4.1 4.1 4.1ChICAGO 4.7 4.9 4.1 4.6 4.1 4.1 4.1DENvER 1.7 2.5 3.6 3.8 4.1 4.1 4.1hONOLuLu 7.7 13.3 11.2 4.0 4.0 4.1 4.1LAs vEGAs 0.9 3.6 4.4 5.9 4.6 4.1 4.1LOs ANGELEs 1.8 4.9 5.2 5.4 4.1 4.1 4.1NEw yORK 7.3 5.0 3.4 4.6 4.1 4.1 4.1PhOENIx 2.5 3.7 3.7 4.4 4.3 4.1 4.1PORTLAND 1.7 6.0 4.6 4.6 4.1 4.1 4.1sAN FRANCIsCO 1.8 6.1 9.4 4.3 4.1 4.1 4.8sEATTLE 3.5 4.5 4.9 4.6 4.1 4.1 4.1wAshINGTON DC 6.5 5.0 4.4 4.3 4.1 4.1 4.1

asiaBEIJING 1.0 2.0 (1.0) 0.5 2.0 2.0 2.0ChENGDu Np 1.1 0.3 (1.1) 0.0 0.4 0.4GuANGzhOu 4.1 3.0 (3.0) 1.0 2.0 2.0 2.0hONG KONG 9.0 8.2 4.3 3.4 3.0 3.0 3.0MACAu 9.3 10.4 3.5 2.0 3.0 3.0 3.0sEOuL 2.4 1.1 (0.5) 1.3 1.7 1.8 1.9shANGhAI 2.0 (1.0) (4.4) (0.0) 2.0 2.0 2.0shENzhEN 3.0 1.5 (0.7) 1.0 2.0 2.0 2.0sINGAPORE 4.5 1.5 1.5 Np Np Np NpSINGApORE

europeBERLIN Np 1.8 2.2 2.0 2.0 2.0 2.0BIRMINGhAM 8.0 7.1 4.0 3.0 2.5 2.8 3.3BRIsTOL 6.3 7.1 4.5 5.0 5.0 5.5 4.8BuDAPEsT Np Np 2.5 3.0 3.3 2.5 NpDuBLIN 4.0 5.0 7.0 4.0 8.0 8.0 NpLONDON 3.4 5.0 5.9 3.5 3.5 3.5 3.7shEFFIELD 6.3 7.1 9.0 2.5 (1.0) (3.0) 0.5MADRID Np 0.0 (0.0) 0.1 0.8 0.1 0.1MANChEsTER 6.3 7.1 4.0 5.0 5.0 5.5 4.8MOsCOw Np 0.0 (5.0) 0.0 1.0 1.5 2.0wARsAw Np (0.8) 0.7 3.2 3.2 1.2 Np

middle easTABu DhABI 3.2 3.3 4.7 5.7 6.1 7.3 7.3DOhA 3.2 4.5 5.0 5.5 6.0 7.0 NpDuBAI 3.2 3.7 4.6 3.0 3.5 3.5 3.5RIyADh 4.4 5.0 4.8 5.0 5.0 5.0 5.0

oCeaniaADELAIDE 0.9 0.6 0.8 2.0 3.0 3.5 3.5AuCKLAND 0.8 4.1 5.1 6.7 4.6 3.5 3.0BRIsBANE (1.9) 5.1 5.9 7.9 4.0 4.0 4.0CANBERRA 2.2 1.6 2.0 2.2 3.0 3.0 3.0ChRIsTChuRCh 5.1 6.0 6.0 4.0 4.0 4.0 3.5DARwIN 3.0 1.8 1.0 1.5 2.0 2.0 2.5GOLD COAsT 0.0 4.1 4.0 6.0 5.0 4.0 3.0MELBOuRNE 0.2 1.5 2.0 2.0 3.0 3.0 3.0PERTh 1.1 0.8 0.7 2.1 3.0 3.0 3.0syDNEy 2.0 3.0 4.5 4.8 4.0 3.5 3.5TOwNsvILLE 1.3 2.0 3.0 3.0 4.0 4.0 4.0wELLINGTON 2.0 3.4 3.0 3.0 3.0 3.0 3.0

Np: NOT pUBLIShED

rlB Tender priCe indeX annual % ChanGeQ3 2016


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RANGE OF COsT PER M2 OF GROss FLOOR AREA RANGE OF COsT PER M2 OF GROss FLOOR AREA

LOCAL CuRRENCy

OFFICE BuILDING RETAIL hOTELs CAR PARKING INDusTRIAL wAREhOusE

REsIDENTIAL MuLTI sTOREyPREMIuM OFFICEs GRADE A MALL sTRIP shOPPING 5 sTAR 3 sTAR MuLTI sTOREy BAsEMENT

LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh

ameriCas ameriCas

BAhAMAs USD 2,495 4,455 2,335 3,270 1,635 2,830 1,520 2,390 2,725 7,070 1,530 4,885 N/p N/p N/p N/p 1,410 2,280 1,410 4,565

BARBADOs USD 2,270 3,790 2,055 3,250 1,745 2,700 1,520 2,380 2,595 4,325 1,735 2,700 N/p N/p N/p N/p 700 2,000 3,025 4,325

BOsTON USD 2,960 4,840 1,940 2,960 1,615 2,690 1,075 1,615 3,765 5,400 2,420 3,765 755 1,075 970 1,615 1,075 1,885 1,885 3,230

CAyMAN IsLANDs USD 2,865 4,200 2,650 3,865 2,755 3,865 2,420 3,315 2,970 3,865 2,530 3,530 N/p N/p N/p N/p 1,875 2,970 2,260 3,640

ChICAGO USD 2,475 3,875 1,505 2,155 1,400 2,260 1,130 1,400 3,120 4,845 2,045 2,585 700 1,185 970 1,505 1,075 1,400 1,400 2,260

DENvER USD 1,720 2,745 1,235 1,885 970 1,560 755 1,455 2,155 3,335 1,615 1,990 540 755 970 1,290 980 1,635 915 2,045

hONOLuLu USD 3,070 5,705 2,635 4,305 2,260 5,330 1,885 4,680 5,545 8,020 3,500 5,865 1,075 1,560 1,505 2,850 1,560 2,420 2,100 4,780

LAs vEGAs USD 1,505 3,175 1,130 2,045 1,240 5,165 700 1,560 3,765 5,005 1,615 2,960 540 915 645 1,615 540 1,075 755 4,360

LOs ANGELEs USD 2,260 3,390 1,560 2,370 1,400 3,175 1,130 1,830 3,390 5,060 2,260 3,120 1,075 1,290 1,240 1,775 1,075 1,830 1,720 2,800

NEw yORK USD 3,765 5,920 2,960 4,035 2,690 4,305 1,615 2,690 4,035 5,920 2,960 4,035 970 1,615 1,345 2,160 1,240 2,155 2,155 4,035

PhOENIx USD 1,615 2,960 1,185 1,885 1,185 1,830 805 1,400 2,960 4,575 1,615 2,690 430 700 645 1,075 590 1,075 970 1,990

PORTLAND USD 1,940 2,690 1,400 1,940 1,505 2,585 1,290 1,940 2,045 2,960 1,615 2,045 915 1,130 1,185 1,615 970 1,615 1,615 2,585

sAN FRANCIsCO USD 2,155 3,765 1,940 2,960 2,100 3,500 2,420 3,500 3,230 5,380 2,690 3,765 1,075 1,400 1,775 2,045 1,505 2,045 3,015 4,575

sEATTLE USD 2,045 2,530 1,400 1,990 1,400 2,475 1,185 1,670 2,315 3,390 1,720 2,260 860 1,075 1,075 1,560 970 1,345 1,505 2,690

sT LuCIA USD 2,475 3,550 2,055 2,725 1,775 2,485 1,895 2,495 3,315 4,985 2,495 3,090 N/p N/p N/p N/p 945 2,025 2,370 4,155

wAshINGTON D.C. USD 2,690 4,305 1,885 2,960 1,345 2,690 1,075 1,615 3,500 5,110 2,420 3,495 700 1,075 860 1,345 970 1,615 1,885 3,230

asia asia

BEIJING RMB 7,550 12,450 7,100 10,700 8,300 12,700 7,350 11,450 12,900 17,000 9,600 12,350 2,220 3,000 3,700 6,500 4,300 5,450 4,000 6,100

GuANGzhOu RMB 7,100 11,350 0 9,900 8,100 11,500 7,000 10,500 12,800 16,500 9,460 11,500 2,050 2,950 3,650 6,300 4,100 5,050 3,750 5,600

hO ChI MINh CITy vND ('000) 24,000 34,400 20,400 25,600 19,300 25,700 N/p N/p 31,100 38,100 23,400 30,300 8,800 13,100 18,000 24,500 5,970 9,100 15,400 23,300

hONG KONG $hKD 22,900 34,100 0 26,500 23,000 29,200 19,600 25,500 35,700 43,600 29,400 34,000 8,950 10,600 18,400 25,200 15,100 19,000 21,500 37,200

JAKARTA Rp ('000) 9,648 13,200 6,670 10,620 6,520 8,515 N/p N/p 13,670 17,420 10,410 11,875 3,460 4,450 4,450 6,190 4,650 5,680 6,430 9,986

KuALA LuMPuR RINGGIT 2,500 4,500 1,300 3,000 2,100 3,500 N/p N/p 5,000 7,000 2,500 3,500 800 1,200 1,400 3,200 1,000 1,800 1,900 4,500

MACAu MOp 18,200 26,200 0 22,500 19,900 24,500 16,900 21,600 30,600 37,600 24,600 28,400 N/p N/p 10,600 13,400 N/p N/p 13,700 21,800

MANILA php 32,468 44,303 26,197 35,705 27,512 31,659 20,836 23,365 53,507 61,599 43,190 48,854 14,666 16,892 16,083 18,510 17,397 20,533 27,209 48,450

shANGhAI RMB 7,250 11,500 0 9,900 7,600 12,000 6,750 11,000 12,600 16,600 9,300 12,000 2,050 2,950 3,850 6,400 3,900 5,050 3,600 5,750

sINGAPORE SGD 2,700 4,000 2,100 3,000 2,200 3,400 N/p N/p 4,300 5,600 3,300 3,700 700 1,400 1,500 2,250 1,100 1,600 2,000 3,200

europe europe

BERLIN EUR 1,355 1,775 990 1,150 1,145 1,460 835 1,040 1,985 2,755 1,355 1,770 470 680 785 1,040 365 730 990 1,407

BRIsTOL GBp 1,960 2,580 1,580 2,370 2,700 3,800 860 1,625 2,250 3,000 1,300 1,740 400 800 925 1,440 360 650 1,700 2,400

DuBLIN EUR 1,800 2,000 1,600 1,800 1,900 2,100 1,000 1,200 2,000 2,200 1,340 1,440 400 500 600 1,000 400 560 1,400 1,600

LONDON GBp 2,396 3,120 1,975 3,077 3,195 4,491 1,026 1,922 2,526 3,400 1,706 2,191 410 820 1,090 1,760 443 799 2,008 2,785

MADRID EUR 900 1,500 800 1,150 1,900 2,600 1,400 1,900 1,950 2,600 1,350 1,800 700 900 800 1,200 600 800 700 1,000

MANChEsTER GBp 1,907 2,501 1,646 2,470 2,678 3,762 854 1,615 2,042 2,793 1,292 1,719 323 646 875 1,396 354 646 1,636 2,292

MOsCOw EUR 1,500 2,000 1,300 1,600 1,700 2,100 1,200 1,500 2,800 3,500 1,700 2,200 430 550 800 1,000 500 600 1,200 1,500

OsLO EUR 2,840 3,690 2,190 2,850 1,800 2,340 1,440 1,870 3,920 5,090 2,960 3,850 690 880 890 1,160 1,570 2,030 2,420 3,150

middle easT & afriCa middle easT & afriCa

ABu DhABI AED 5,800 7,000 4,700 6,600 4,100 6,500 N/p N/p 9,000 12,000 6,000 8,500 1,800 3,600 2,850 4,500 1,500 2,700 4,500 6,500

DuBAI AED 5,800 7,000 4,700 6,600 4,100 6,500 N/p N/p 9,000 12,500 6,000 8,500 2,300 3,600 3,100 4,500 1,850 2,900 4,500 6,500

sAuDI ARABIA SAR 4,890 7,597 4,991 6,825 4,728 6,198 3,361 4,728 8,304 10,110 5,989 7,465 920 1,220 2,265 2,845 3,312 4,046 4,576 9,647

DOhA QAR 6,500 8,500 6,100 8,200 5,300 6,500 N/p N/p 11,500 14,500 7,500 8,500 N/p N/p 2,750 4,500 N/p N/p 6,500 7,800

oCeania oCeania

ADELAIDE AUD 2,600 3,850 2,100 3,250 1,550 2,850 1,300 1,825 3,500 4,400 2,500 3,400 600 900 1,300 1,900 625 1,100 2,250 3,550

AuCKLAND NZD 3,400 4,500 2,600 4,000 2,300 2,800 1,200 1,200 4,500 5,500 3,200 3,800 650 900 1,400 2,000 600 850 3,000 4,000

BRIsBANE AUD 2,600 4,000 2,000 3,000 2,300 3,100 1,100 1,600 4,000 5,500 2,800 4,000 700 1,100 1,600 2,100 600 1,100 2,000 3,200

CANBERRA AUD 3,194 4,141 2,590 3,267 2,195 3,080 1,175 1,936 3,933 4,849 2,861 3,995 729 1,009 978 1,395 676 1,051 2,653 3,850

ChRIsTChuRCh NZD 3,700 4,800 3,150 4,200 1,650 2,200 N/p N/p 3,700 4,200 3,000 3,300 850 1,350 1,750 2,200 720 1,100 N/p N/p

DARwIN AUD 3,100 4,150 2,400 3,800 1,730 2,590 1,230 2,090 3,600 4,450 2,830 3,550 750 1,250 1,170 1,530 800 1,420 2,010 2,650

GOLD COAsT AUD 2,450 4,000 1,900 3,000 2,150 3,100 1,050 1,600 3,400 5,500 2,600 4,000 700 1,100 1,500 2,050 600 1,100 1,758 3,200

MELBOuRNE AUD 3,000 3,750 2,325 2,900 2,025 3,000 1,060 1,550 3,450 4,500 3,050 3,500 655 1,060 1,110 1,365 555 1,100 2,200 3,500

PERTh AUD 3,150 4,770 2,575 3,740 2,300 2,800 1,025 2,565 3,600 4,430 2,645 3,635 750 1,000 1,850 3,100 550 1,020 2,230 3,830

syDNEy AUD 3,250 4,600 2,400 3,450 1,800 3,750 1,400 1,800 4,050 5,350 2,850 3,600 700 1,050 1,000 1,600 670 1,050 2,350 4,350

wELLINGTON NZD 2,940 3,360 2,310 2,625 1,300 1,800 N/p N/p 3,400 4,100 2,310 2,730 500 900 1,890 2,730 900 1,400 2,625 3,360N/p: NOT pUBLIShED

The following data represents estimates of current building costs in the respective market. Costs may vary as a consequence of factors suchassiteconditions,climaticconditions,standardsofspecification,marketconditionsetc.

marKeT daTaINTERNATIONAL CONSTRUCTION RATE RANGES


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RANGE OF COsT PER M2 OF GROss FLOOR AREA RANGE OF COsT PER M2 OF GROss FLOOR AREA

LOCAL CuRRENCy

OFFICE BuILDING RETAIL hOTELs CAR PARKING INDusTRIAL wAREhOusE

REsIDENTIAL MuLTI sTOREyPREMIuM OFFICEs GRADE A MALL sTRIP shOPPING 5 sTAR 3 sTAR MuLTI sTOREy BAsEMENT

LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh LOw hIGh

ameriCas ameriCas

BAhAMAs USD 2,495 4,455 2,335 3,270 1,635 2,830 1,520 2,390 2,725 7,070 1,530 4,885 N/p N/p N/p N/p 1,410 2,280 1,410 4,565

BARBADOs USD 2,270 3,790 2,055 3,250 1,745 2,700 1,520 2,380 2,595 4,325 1,735 2,700 N/p N/p N/p N/p 700 2,000 3,025 4,325

BOsTON USD 2,960 4,840 1,940 2,960 1,615 2,690 1,075 1,615 3,765 5,400 2,420 3,765 755 1,075 970 1,615 1,075 1,885 1,885 3,230

CAyMAN IsLANDs USD 2,865 4,200 2,650 3,865 2,755 3,865 2,420 3,315 2,970 3,865 2,530 3,530 N/p N/p N/p N/p 1,875 2,970 2,260 3,640

ChICAGO USD 2,475 3,875 1,505 2,155 1,400 2,260 1,130 1,400 3,120 4,845 2,045 2,585 700 1,185 970 1,505 1,075 1,400 1,400 2,260

DENvER USD 1,720 2,745 1,235 1,885 970 1,560 755 1,455 2,155 3,335 1,615 1,990 540 755 970 1,290 980 1,635 915 2,045

hONOLuLu USD 3,070 5,705 2,635 4,305 2,260 5,330 1,885 4,680 5,545 8,020 3,500 5,865 1,075 1,560 1,505 2,850 1,560 2,420 2,100 4,780

LAs vEGAs USD 1,505 3,175 1,130 2,045 1,240 5,165 700 1,560 3,765 5,005 1,615 2,960 540 915 645 1,615 540 1,075 755 4,360

LOs ANGELEs USD 2,260 3,390 1,560 2,370 1,400 3,175 1,130 1,830 3,390 5,060 2,260 3,120 1,075 1,290 1,240 1,775 1,075 1,830 1,720 2,800

NEw yORK USD 3,765 5,920 2,960 4,035 2,690 4,305 1,615 2,690 4,035 5,920 2,960 4,035 970 1,615 1,345 2,160 1,240 2,155 2,155 4,035

PhOENIx USD 1,615 2,960 1,185 1,885 1,185 1,830 805 1,400 2,960 4,575 1,615 2,690 430 700 645 1,075 590 1,075 970 1,990

PORTLAND USD 1,940 2,690 1,400 1,940 1,505 2,585 1,290 1,940 2,045 2,960 1,615 2,045 915 1,130 1,185 1,615 970 1,615 1,615 2,585

sAN FRANCIsCO USD 2,155 3,765 1,940 2,960 2,100 3,500 2,420 3,500 3,230 5,380 2,690 3,765 1,075 1,400 1,775 2,045 1,505 2,045 3,015 4,575

sEATTLE USD 2,045 2,530 1,400 1,990 1,400 2,475 1,185 1,670 2,315 3,390 1,720 2,260 860 1,075 1,075 1,560 970 1,345 1,505 2,690

sT LuCIA USD 2,475 3,550 2,055 2,725 1,775 2,485 1,895 2,495 3,315 4,985 2,495 3,090 N/p N/p N/p N/p 945 2,025 2,370 4,155

wAshINGTON D.C. USD 2,690 4,305 1,885 2,960 1,345 2,690 1,075 1,615 3,500 5,110 2,420 3,495 700 1,075 860 1,345 970 1,615 1,885 3,230

asia asia

BEIJING RMB 7,550 12,450 7,100 10,700 8,300 12,700 7,350 11,450 12,900 17,000 9,600 12,350 2,220 3,000 3,700 6,500 4,300 5,450 4,000 6,100

GuANGzhOu RMB 7,100 11,350 0 9,900 8,100 11,500 7,000 10,500 12,800 16,500 9,460 11,500 2,050 2,950 3,650 6,300 4,100 5,050 3,750 5,600

hO ChI MINh CITy vND ('000) 24,000 34,400 20,400 25,600 19,300 25,700 N/p N/p 31,100 38,100 23,400 30,300 8,800 13,100 18,000 24,500 5,970 9,100 15,400 23,300

hONG KONG $hKD 22,900 34,100 0 26,500 23,000 29,200 19,600 25,500 35,700 43,600 29,400 34,000 8,950 10,600 18,400 25,200 15,100 19,000 21,500 37,200

JAKARTA Rp ('000) 9,648 13,200 6,670 10,620 6,520 8,515 N/p N/p 13,670 17,420 10,410 11,875 3,460 4,450 4,450 6,190 4,650 5,680 6,430 9,986

KuALA LuMPuR RINGGIT 2,500 4,500 1,300 3,000 2,100 3,500 N/p N/p 5,000 7,000 2,500 3,500 800 1,200 1,400 3,200 1,000 1,800 1,900 4,500

MACAu MOp 18,200 26,200 0 22,500 19,900 24,500 16,900 21,600 30,600 37,600 24,600 28,400 N/p N/p 10,600 13,400 N/p N/p 13,700 21,800

MANILA php 32,468 44,303 26,197 35,705 27,512 31,659 20,836 23,365 53,507 61,599 43,190 48,854 14,666 16,892 16,083 18,510 17,397 20,533 27,209 48,450

shANGhAI RMB 7,250 11,500 0 9,900 7,600 12,000 6,750 11,000 12,600 16,600 9,300 12,000 2,050 2,950 3,850 6,400 3,900 5,050 3,600 5,750

sINGAPORE SGD 2,700 4,000 2,100 3,000 2,200 3,400 N/p N/p 4,300 5,600 3,300 3,700 700 1,400 1,500 2,250 1,100 1,600 2,000 3,200

europe europe

BERLIN EUR 1,355 1,775 990 1,150 1,145 1,460 835 1,040 1,985 2,755 1,355 1,770 470 680 785 1,040 365 730 990 1,407

BRIsTOL GBp 1,960 2,580 1,580 2,370 2,700 3,800 860 1,625 2,250 3,000 1,300 1,740 400 800 925 1,440 360 650 1,700 2,400

DuBLIN EUR 1,800 2,000 1,600 1,800 1,900 2,100 1,000 1,200 2,000 2,200 1,340 1,440 400 500 600 1,000 400 560 1,400 1,600

LONDON GBp 2,396 3,120 1,975 3,077 3,195 4,491 1,026 1,922 2,526 3,400 1,706 2,191 410 820 1,090 1,760 443 799 2,008 2,785

MADRID EUR 900 1,500 800 1,150 1,900 2,600 1,400 1,900 1,950 2,600 1,350 1,800 700 900 800 1,200 600 800 700 1,000

MANChEsTER GBp 1,907 2,501 1,646 2,470 2,678 3,762 854 1,615 2,042 2,793 1,292 1,719 323 646 875 1,396 354 646 1,636 2,292

MOsCOw EUR 1,500 2,000 1,300 1,600 1,700 2,100 1,200 1,500 2,800 3,500 1,700 2,200 430 550 800 1,000 500 600 1,200 1,500

OsLO EUR 2,840 3,690 2,190 2,850 1,800 2,340 1,440 1,870 3,920 5,090 2,960 3,850 690 880 890 1,160 1,570 2,030 2,420 3,150

middle easT & afriCa middle easT & afriCa

ABu DhABI AED 5,800 7,000 4,700 6,600 4,100 6,500 N/p N/p 9,000 12,000 6,000 8,500 1,800 3,600 2,850 4,500 1,500 2,700 4,500 6,500

DuBAI AED 5,800 7,000 4,700 6,600 4,100 6,500 N/p N/p 9,000 12,500 6,000 8,500 2,300 3,600 3,100 4,500 1,850 2,900 4,500 6,500

sAuDI ARABIA SAR 4,890 7,597 4,991 6,825 4,728 6,198 3,361 4,728 8,304 10,110 5,989 7,465 920 1,220 2,265 2,845 3,312 4,046 4,576 9,647

DOhA QAR 6,500 8,500 6,100 8,200 5,300 6,500 N/p N/p 11,500 14,500 7,500 8,500 N/p N/p 2,750 4,500 N/p N/p 6,500 7,800

oCeania oCeania

ADELAIDE AUD 2,600 3,850 2,100 3,250 1,550 2,850 1,300 1,825 3,500 4,400 2,500 3,400 600 900 1,300 1,900 625 1,100 2,250 3,550

AuCKLAND NZD 3,400 4,500 2,600 4,000 2,300 2,800 1,200 1,200 4,500 5,500 3,200 3,800 650 900 1,400 2,000 600 850 3,000 4,000

BRIsBANE AUD 2,600 4,000 2,000 3,000 2,300 3,100 1,100 1,600 4,000 5,500 2,800 4,000 700 1,100 1,600 2,100 600 1,100 2,000 3,200

CANBERRA AUD 3,194 4,141 2,590 3,267 2,195 3,080 1,175 1,936 3,933 4,849 2,861 3,995 729 1,009 978 1,395 676 1,051 2,653 3,850

ChRIsTChuRCh NZD 3,700 4,800 3,150 4,200 1,650 2,200 N/p N/p 3,700 4,200 3,000 3,300 850 1,350 1,750 2,200 720 1,100 N/p N/p

DARwIN AUD 3,100 4,150 2,400 3,800 1,730 2,590 1,230 2,090 3,600 4,450 2,830 3,550 750 1,250 1,170 1,530 800 1,420 2,010 2,650

GOLD COAsT AUD 2,450 4,000 1,900 3,000 2,150 3,100 1,050 1,600 3,400 5,500 2,600 4,000 700 1,100 1,500 2,050 600 1,100 1,758 3,200

MELBOuRNE AUD 3,000 3,750 2,325 2,900 2,025 3,000 1,060 1,550 3,450 4,500 3,050 3,500 655 1,060 1,110 1,365 555 1,100 2,200 3,500

PERTh AUD 3,150 4,770 2,575 3,740 2,300 2,800 1,025 2,565 3,600 4,430 2,645 3,635 750 1,000 1,850 3,100 550 1,020 2,230 3,830

syDNEy AUD 3,250 4,600 2,400 3,450 1,800 3,750 1,400 1,800 4,050 5,350 2,850 3,600 700 1,050 1,000 1,600 670 1,050 2,350 4,350

wELLINGTON NZD 2,940 3,360 2,310 2,625 1,300 1,800 N/p N/p 3,400 4,100 2,310 2,730 500 900 1,890 2,730 900 1,400 2,625 3,360N/p: NOT pUBLIShED

Rates are in national currency per square metre of Gross Floor Area except as follows:• Chinesecities,HongKongandMacau:RatesarepersquaremetreofConstructionFloorArea,measuredtoouterfaceofexternalwalls.• Singapore,HoChiMinhCity,JakartaandKualaLumpur:RatesarepersquaremetreofConstructionFloorArea,measuredtoouterface

of external walls and inclusive of covered basement and above ground parking areas.• Chinesecities,HongKong,KualaLumpur,MacauandSingapore:AllhotelratesareinclusiveofFurnitureFittingsandEquipment(FF&E).


8

ameriCas houses aparTmenTs offiCes indusTrial reTail hoTel Civil

ANGuILLA

ANTIGuA AND BARBuDA

BAhAMAs

BARBADOs

BERMuDA

BOsTON

BRITIsh vIRGIN IsLANDs

CAyMAN IsLANDs

ChICAGO

CuBA

DENvER

DOMINICA

DOMINICAN REPuBLIC

GRENADA

GuADALOuPE

hAITI

hONOLuLu

JAMAICA

LAs vEGAs

LOs ANGELEs

MARTINIQuE

MONTsERRAT

NEThERLANDs ANTILLEs

NEw yORK

PhOENIx

PORTLAND

PuERTO RICO

sAN FRANCIsCO

sEATTLE

sT KITTs AND NEvIs

sT LuCIA

sT vINCENT AND ThE GRENADINEs

TRINIDAD AND TOBAGO

TuRKs AND CAICOs IsLANDs

us vIRGIN IsLANDs

wAshINGTON, D.C.

Np: NOT pUBLIShED

marKeT daTaCONSTRUCTION SECTOR ACTIvITy

RLB Construction Market Activity CycleActivity within the construction industry traditionally has been subject to volatile cyclical fluctuations.The RLB Construction Sector Activity Cycle represents the construction development activity cycle. Each RLB office highlights the current construction sector activity position within the market activity cycle of those key construction sectors within their region.Eachsectoriscategorisedbythreepositionswithinthecycle;Peak,MidandTrough.Withineachposition,activityisfurtherdefinedbyeitherdecliningorgrowing within that sector.The“up”and“down”arrowshighlightthecurrentstatuswithinthethreepositions of the cycle by means of the three colours identified in the cycle diagram below.


9

afriCa houses aparTmenTs offiCes indusTrial reTail hoTel Civil

CAPE TOwN

JOhANNEsBuRG

MAPuTO (MOzAMBIQuE)

PORT LOuIs (MAuRITIus)

PRETORIA

asia

BEIJING

ChENGDu

GuANGzhOu

hO ChI MINh CITy

hONG KONG

JAKARTA

KuALA LuMPuR

MACAu

MANILA

sEOuL

shANGhAI

shENzhEN

sINGAPORE

europe

BERLIN

BIRMINGhAM

DuBLIN

LONDON

MADRID

MANChEsTER

MILAN

MOsCOw

PARIs

shEFFIELD

middle easT & afriCa

ABu DhABI

DOhA

DuBAI

RIyADh

oCeania

ADELAIDE

AuCKLAND

BRIsBANE

CANBERRA

ChRIsTChuRCh

DARwIN

GOLD COAsT

MELBOuRNE

PERTh

syDNEy

TOwNsvILLE –

wELLINGTON

Np: NOT pUBLIShED


10

marKeT daTaCONSTRUCTION SECTOR ACTIvITy

NUMBER OF CITIES

40

10

0

20

30

50

60

GROWTH DECLINE

HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL

NUMBER OF CITIES

40

35

30

15

10

5

0

20

25

45

50

PEAK ZONE MID ZONE TROUGH ZONE

HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL

GLOBAL – GROwTh sECTORs vs DECLINE sECTORs

GLOBAL – NO. OF CITIEs wIThIN zONEs

RLB GLOBAL MARKET ACTIvITy PEAK zONE sECTOR

RLB GLOBAL MARKET ACTIvITy MID zONE sECTOR

RLB GLOBAL MARKET ACTIvITy TROuGh zONE sECTOR

HOUSE 18%CIVIL 15%

HOTEL 12%APARTMENTS 13%

OFFICES 15%RETAIL 13%

INDUSTRIAL 14%

HOUSE 13%CIVIL 17%

HOTEL 17%APARTMENTS 23%


INDUSTRIAL 7%

HOUSE 10%CIVIL 12%

HOTEL 15%

APARTMENTS 12%


INDUSTRIAL 18%

KPMG,Sydney,Australia

Client: Lend Lease

Interior Designers: Davenport Campbell / EGO


12

marKeT daTaKEy ECONOMIC DATA

ausTralia 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 2.6 % 2.5 % 2.5 % 3.0 % 3.0 % 2.9 %

GDp pER CApITA – AUD $67,893 $68,413 $68,903 $69,778 $70,703 $71,601

ExChANGE RATE (AS AT 1 JULy pER US$) 1.230 1.372 1.315 1.334 1.349 Np

ppp RATE 1.455 1.431 1.431 1.437 1.444 1.447

INFLATION 2.5 % 1.5 % 2.1 % 2.4 % 2.5 % 2.5 %

UNEMpLOyMENT 6.1 % 6.1 % 5.9 % 5.8 % 5.7 % 5.7 %

China 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 7.3 % 6.9 % 6.5 % 6.2 % 6.0 % 6.0 %

GDp pER CApITA – CNy ¥40,494 ¥43,074 ¥45,643 ¥48,233 ¥50,874 ¥53,660


ppp RATE 3.567 3.527 3.506 3.485 3.458 3.441

INFLATION 2.0 % 1.4 % 1.8 % 2.0 % 2.2 % 2.6 %

UNEMpLOyMENT 4.1 % 4.1 % 4.1 % 4.1 % 4.1 % 4.1 %

neW Zealand 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 3.0 % 3.4 % 2.0 % 2.5 % 2.5 % 2.2 %

GDp pER CApITA – NZD $47,243 $47,849 $48,404 $49,199 $50,007 $50,708


ppp RATE 1.480 1.463 1.476 1.476 1.478 1.478

INFLATION 1.2 % 0.3 % 1.5 % 1.9 % 2.0 % 2.0 %

UNEMpLOyMENT 5.8 % 5.8 % 5.9 % 5.8 % 5.8 % 5.7 %

sinGapore 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 3.3 % 2.0 % 1.8 % 2.2 % 2.5 % 2.7 %

GDp pER CApITA – SGD $70,139 $70,704 $71,332 $72,324 $73,494 $74,839


ppp RATE 0.848 0.853 0.854 0.847 0.840 0.832

INFLATION 1.0 % -0.5 % 0.2 % 1.3 % 1.9 % 1.9 %

UNEMpLOyMENT 2.0 % 1.9 % 2.0 % 2.0 % 2.0 % 2.0 %

souTh afriCa 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 1.5 % 1.3 % 0.6 % 1.2 % 2.1 % 2.4 %

GDp pER CApITA – ZAR R 55,725 R 55,460 R 54,926 R 54,719 R 54,974 R 55,412


ppp RATE 5.369 5.516 5.795 6.068 6.286 6.505

INFLATION 6.1 % 4.6 % 6.5 % 6.3 % 5.6 % 5.6 %

UNEMpLOyMENT 25.1 % 25.4 % 26.1 % 26.7 % 26.9 % 27.0 %

notes:Forecasts for years after 2015. Exchange rates are quoted as currency units per U.S. dollar Euro Areacomposedof17countries:Austria,Belgium,Cyprus,Estonia,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,Malta,Netherlands,Portugal,SlovakRepublic,Slovenia,andSpain. Asean-5composedof5countries:Indonesia,Malaysia,Philippines,Thailand,andVietnam.


13

uniTed KinGdom 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 2.9 % 2.2 % 1.9 % 2.2 % 2.2 % 2.1 %

GDp pER CApITA – GBp £27,087 £27,483 £27,799 £28,221 £28,646 £29,065


ppp RATE 0.700 0.696 0.698 0.701 0.701 0.700

INFLATION 1.5 % 0.1 % 0.8 % 1.9 % 2.0 % 2.0 %

UNEMpLOyMENT 6.2 % 5.4 % 5.0 % 5.0 % 5.1 % 5.3 %

usa 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 2.4 % 2.4 % 2.4 % 2.5 % 2.4 % 2.1 %

GDp pER CApITA – USD $50,016 $50,836 $51,619 $52,457 $53,243 $53,913

ExChANGE RATE (AS AT 1 JULy pER US$) 1.000 1.000 1.000 1.000 1.000 1.000

ppp RATE 1.000 1.000 1.000 1.000 1.000 1.000

INFLATION 1.6 % 0.1 % 0.8 % 1.5 % 2.4 % 2.5 %

UNEMpLOyMENT 6.2 % 5.3 % 4.9 % 4.8 % 4.8 % 4.9 %

laTin ameriCa and CariBBean 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 1.3 % -0.1 % -0.5 % 1.5 % 2.1 % 2.6 %

GDp pER CApITA (INT $) 15,434 15,377 15,259 15,519 15,990 16,574

INFLATION 4.9 % 5.5 % 5.7 % 4.3 % 4.1 % 3.9 %

euro area 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 0.9 % 1.6 % 1.5 % 1.6 % 1.6 % 1.6 %

ExChANGE RATE (AS AT 1 JULy pER US$) - EURO 0.822 0.915 0.873 0.861 0.846 Np

ppp RATE N/A N/A N/A N/A N/A N/A

INFLATION 0.4 % 0.0 % 0.4 % 1.1 % 1.3 % 1.5 %

UNEMpLOyMENT 11.6 % 10.9 % 10.3 % 9.9 % 9.6 % 9.2 %

middle easT & norTh afriCa 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 2.6 % 2.3 % 2.9 % 3.3 % 3.4 % 3.6 %


INFLATION 6.6 % 5.9 % 5.5 % 4.7 % 4.4 % 4.0 %

asean-5 2014 2015 2016 (f) 2017 (f) 2018 (f) 2019 (f)

GDp 4.6 % 4.8 % 4.8 % 5.1 % 5.2 % 5.3 %


INFLATION 4.6 % 3.3 % 2.8 % 3.5 % 3.5 % 3.6 %

marKeT daTaKEy ECONOMIC DATA

south America and Carribeancomposedof32countries:AntiguaandBarbuda,Argentina,TheBahamas,Barbados,Belize,Bolivia,Brazil,Chile,Colombia,CostaRica,Dominica,DominicanRepublic,Ecuador,ElSalvador,Grenada,Guatemala,Guyana,Haiti,Honduras,Jamaica,Mexico,Nicaragua,Panama,Paraguay,Peru,St.KittsandNevis,St.Lucia,St.VincentandtheGrenadines,Suriname,TrinidadandTobago,Uruguay,andVenezuela. Middle East and North Africacomposedof20countries:Algeria,Bahrain,Djibouti,Egypt,Iran,Iraq,Jordan,Kuwait,Lebanon,Libya,Mauritania,Morocco,Oman,Qatar,SaudiArabia,Sudan,Syria,Tunisia,UnitedArabEmirates,andYemen.Sources:RLB,IMF,Scotiabank

14

PodiumatMenlyn,Pretoria,SouthAfrica

Client: Emira Property Fund

Architect: Architects: Boogertman + Partners

Location inteLLigence

Sub Saharan africa

15


Sub-Saharan Africa’s 2015 growth was subdued after more than a decade of solid growth as reported by the IMF, however in 2016 it is forecasted to recover quite moderately.

GDp has slowed from 4.6% in 2014 to 3.7% in 2015, the lowest since 2009. GDp is expected to recover during 2016 increasing to 4.6 %. 2015 showed a decline in growth rates for Sub Saharan Africa amid weak global economic conditions, while considerable variation within regions did not stop some countries from posting solid growth.

Commodity prices have remained persistently low, mostly due to robust supplies and lower demand. Following some recovery in the Q2, oil prices plunged again, dropping below US$40 per barrel. prices of copper and iron ore, two of the region’s main metal exports, fell by about 25% and 40%, respectively. As a net commodities exporter, Africa is deeply affected by falling commodity prices.

The South African economy is forecast to grow modestly in 2016 at 1.4% compared with 1.3% in 2015. This revised forecast is substantially slower than the 2.1% growth forecast in June. The low commodity prices, particularly with oil, which fell 67% from June 2014 to December 2015, have affected engineering and mining contracts. South Africa was also hit by lower platinum, iron ore and coal prices. Four of the country’s largest construction companies have reduced their staff by more than 20,000 jobs over the past two years, with executives saying more are likely amid a domestic economic slowdown.

The Q1 2016 saw construction tender competition intensify, as activity within the sector’s project output rate was slow. The low output of projects was in line with lower public sector capital expenditure and continuing weak growth in private sector capital expenditure.

Africa is experiencing radical modernisation in various pockets. Most low-income countries are expected to continue to grow at a faster pace, supported by large-scale infrastructure investment and consumer spending.

As of March 2016, the World Bank Group approved US$4.27 billion in lending for Sub Saharan Africa for 51 projects. Support included US$3.8 billion in International Development Association commitment for 44 projects and US$570 million in International Bank for Reconstruction and Development loans for 7 operations focusing on infrastructure.

Consumer confidence remains steady with increased infrastructure being offset by vulnerability of price shocks and the slowdown of China’s economic growth and import expenditure.

2016 EsCALATION

REGIONAL MARKET ACTIvITysECTORs PER zONE

PEAK zONE

MID zONE

TROuGh zONE

169

10

16

WestconWarehousesandOfces,WaterfallLogisticsPrecinct,Midrand,SouthAfrica

Client: Atterbury Property

Architect: Empowered Spaces Architects

Location inteLLigenceSub Saharan africa

17


CAPE TOwNCape Town’s construction market is showing signs of slow growth in 2016 alongside a lack of government projects and persistently low commodity prices.

Western Cape’s residential sector looks promising as Cape Town is seeing an increase in residential building plans approved, this however was offset by a decrease in non-residential building plans approved. Residential building completions have also increased however once again offset by a non-residential decrease.

The new district at the Victoria & Alfred Waterfront, is estimated at R700 million, which will see a corporate head office for British American Tobacco South Africa as the first project in this mixed-use area. Totalling 75,000m² the mixed-use Canal District straddles both sides of Dock Road. The project is designed to meet the 5 star green rating and is expected to be complete in November 2016.

“Demandforcommercialspaceatthe Victoria & Alfred Waterfront is driving development in this district. This district is also a piece inthejigsawpuzzlethatprovidesaseamless link through to the Cape Town International Convention CentreandCapeTown’sCBD”according to the CEO of V & A Waterfront. Additionally, Blue Rock Resort located in Somerset West has construction plans of redevelopment, with an estimated value of R14 billion. The development compromises of 1,000 luxury apartments to be built on 40 hectares of land.

JOhANNEsBuRG & PRETORIAJohannesburgandPretoriawillexperience slow growth in their local economies due to a cut in government expenditure alongside fiscal balances. The World Bank has released a report revising the growth forecast to just 0.8% for Johannesburgthisyear.

South Africa's construction sector is experiencing a sluggish period of growth as business sentiment has been heavily eroded, which we expect will lead to significant cuts to capital expenditure over 2016 and 2017.

A high-budget city development labelled The East Capital, is taking placeeastofPretoriainHazeldean.The R44 billion project comprises a 100,000m2 mall, along with housing, business, manufacturing, leisure facilities. The East Capital will be accessed off the N4, leading to the development of a new R90 million roadknownasHazeldeanBoulevard.ConstructionofHazeldeanBoulevardis scheduled over a 12 to 18 month period and a welcome addition to the local economy.

There is currently increased interest ininvestinginHazeldean;comprisingof commercial, businesses, retailers, educational and hospitality sectors. Additionally, the Menlyn Main precinct is set to undergo a R8 billion redevelopment becoming Africa’s first green city. The Menlyn Maine precinct has been in development since 2010, with the retail component of the project expected to be complete by September 2016.

The first phase of the R6.2 billion Leratong City integrated nodal development, situated across the road from the existing Leratong Hospital,westofJohannesburg,has commenced. The project will eventually consist of 15,000 residential units, an intermodal transport hub, a government precinct as well as a 30,000m² regional mall.

PORT LOuIs (MAuRITIus)Mauritius’ economy is forecasting sound growth in GDP of 3.8% for 2016 and 3.6% in 2017. The increases have been driven by the information, communications, and technology sectors.

The slower performance of the construction sector, which declined for a second consecutive year by 4.3%, offset some of the positive gainswithinothersectors.DuringQ42015 no change was registered in the labour, hire of plant and transport sub-indices.

The Minister of Public Infrastructure believes that the key to boosting Mauritius’ construction sector is centred on establishing upcoming infrastructure projects and improved training of those employed in the industry.

In line with the government’s vision of increased construction there have been quite a large number of projects released for 2016. New developments totalling more than R12 billion include: Flyovers, highway ramps andinterchangesatJumboPhoenix,Phoenix Beverages and the Dowlut round-about, the second phase of the Port Louis Ring Road, construction of roads and a bridge at Coromandel, 256 housing units, as well as a new control tower and a new parking area for wide-bodied aircrafts at the airport.

The construction industry is showing potential to develop growth with a Memorandum of Understanding (MOU) between the Road Development Authority (RDA) and the Korea Expressway Corporation signed in April 2016. Aiming to provide close collaboration and cooperation in the field of construction and maintenance of roads, bridges and tunnels. The MOU is part of the implementing the Road Decongestion Program. Once commenced this should give an increased pipeline of work in the short to medium term for Mauritius.

18

UniversityofMassachusettsChampionsCenter,USA

Client:JCJArchitecture

Architect:JCJArchitecture


AMERICAS

19


America’s economy continues to show signs of stable growth, as the country’s GDp is forecast to increase from 1.8% to 2% between third quarter 2016 and 2020. Falling energy prices and a strong dollar have assisted the market in restraining inflation through 2015 and into 2016.

In 2016, the construction industry in the United States is generally in the best shape that it has been since the depths of the financial crisis. Construction unemployment is down to 4.5%, close to economic ‘full employment’ and activity is up in virtually all areas with the possible exception of the oil centres.

housing construction has finally returned to an equilibrium with construction activity matching population driven demand. Interestingly, while construction of single family homes represented about 2/3rds of new housing in the years 2000 through 2011, by 2015 the number of single family units and “5 or more” multi-family units was roughly the same. There are a variety of theories that have been advanced to explain this trend including a general move towards urban core living, rising rents / affordability, and life style.

According to the U.S. Department of Commerce, construction put-in-place during June 2016 was estimated at a seasonally adjusted annual rate of $1,133.5 billion, which is 0.6% below the revised May estimate of $1,140.9 billion. The June 2015 figure is .3% above the June 2013 estimate of $1,130.5 billion. The value of construction for the first six months of this year was $539.8 billion, 6.2% above the same period in 2015.

In December of 2015 there was a 0.25% increase in interest rates which is unlikely to dampen activity in the construction industry, moreover developers and investors are cautious when considering the longer term outlook. Future construction costs are trending upwards due to the volume of construction work, shortage of skilled labour, and fluctuating material prices.

prices for steel products showed particular weakness with the indexes for fabricated structural steel and carbon steel pipe falling. The current labour shortage has more than offset the weakening material price as the subcontractor labour index, reported by hIS, registered 49.1 in September 2016, moving the index back below the neutral mark.

REGIONAL RELATIvITIEsCITIEs Q3–2016

hONOLuLu 190

NEw yORK 187

sAN FRANCIsCO 164

BOsTON 159

ChICAGO 154

wAshINGTON DC 150

LOs ANGELEs 143

sEATTLE 123

PORTLAND 112

DENvER 106

PhOENIx 105

LAs vEGAs 104

2016 EsCALATION

PEAK zONE

MID zONE

TROuGh zONE

111110

31


Location inteLLigenceAMERICAS

20


hONOLuLuHawaii’seconomicclimateisexpected to remain relatively stable through2017.Hawaiiisanticipatingadvances in the national and global economies, leading to a tourism increase, a prosperous labor market, and growth of personal income and tax revenues.

According to the Department of Business, Economic Development & Tourism,Hawaii’soverallrealGDPis expected to increase by 1.8% in 2016 and the consensus forecast predicts an overall 2.3% growth in 2017.UnemploymentinHawaiihasremained significantly low projecting to be 3.2% in 2016 and continues toshowsignsofdecreases.June2016 y-o-y numbers highlight an unemployment decrease from 3.8% to 3.2%,rankingHawaiithe4thlowestinthe nation.

Visitor arrivals are expected to grow by 2.5% in 2016 and expected to increase 1.7% in 2017. Personal income has shown strong signs of growth with the current dollars expecting to increase 4.8% and 5.0% in 2017.

The constantly improving economic performanceofHawaiicorrespondswith growth of the construction market, demonstrated by a variety of projects underway in numerous sectors. The tourism related sector has remained a primary cause of construction with projects including theHiltonGardenInn,InternationalMarketPlace,HiltonHawaiianVillage,Turtle Bay and Outrigger Reef.

The residential sector also continues tolookfavorablewithD.RHortonsHoopiliprojectontheEwaplainimminent together with projects at Kakaako, Parklane, West Oahu, KoOlina and several on the Big Island.

TenderpricesforHawaiihavebeen on a downward trend since the substantial increases of 13.3% and 11.2% over 2014 and 2015 respectively. As construction becomes much more competitive tenders generally are expected to tighten and expected to remain stable through 2017 with a TPI forecast of 4.0%.

BOsTON Boston’s economy continues to show strong signs of growth with unemployment rates decreasing to under 4% and population is rising with an expected growth of 3% through the year 2020. With population on the rise, companies such as GE are relocating to downtown Boston to tap into the potential pool of new talent. Boston’s housing market also correlates to the population growth and continues to be in high demand with a projected 30,000 units being added by the year 2020.

Relocation of both businesses and residents to the area continues to bolster the market. Construction jobs in Boston are in demand with an increase of 10% employment from 2015.

A common theme taking place throughout the Boston construction market is the reuse of older buildings through a regenerative process. Neighbourhoods such as Boston’s Seaport District are being transformed from old manufacturing buildings into high end work spaces and hotels. In an effort to breathe new life into deteriorating neighbourhoods, residential buildings such as Millennium Tower in Boston’s downtown area, are being built to attract tourists, businesses and residents alike.

Noteworthy construction projects in the Boston area include GE’s headquarters,theHubatCauseway,Millennium Tower and One Dalton.


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LOs ANGELEsLos Angeles economy has experienced strong signs of increased growth, with unemployment rates continuing to decrease, personal income sustaining an upward trend and continued population growth.

This correlates with Los Angeles experiencing growth within the construction sector, shown by the increase of new building permits since 2010. The outlook for the industry is set to outpace the rest of the nation over the next five years with house prices, employment, income and population growth culminating in an upward trend. LA will continue its growth for the coming years.

The residential construction sector remains strong in both the apartment and condominium market with 14,752 units in the pipeline for downtown Los Angeles alone and 11,000 currentlyunderconstruction.Houseprice increases continue to be a major input contributing to Los Angeles’ economicgrowth.ArecentHomePrice Index highlights the constant growth observed in house prices. The index indicates a growth of 48% from June2012toJune2016.

Significant projects either under construction or preconstruction in the residential sector of downtown Los Angeles includeFig Central, Circa, OceanwideLAPlaza,AMPLofts,Broadway and Olympic condos, Da Vinci and Fourth & Broadway.

Mixed use development projects are also prevalent in Los Angeles including projects such as the BlossomPlaza,Citymarket,HeraldExaminerRenovation,LaPlazaCultura Village, Medallion 2.0, Metropolis,Oceanwideplaza,TheGrand, and Wilshire Grand Centre.

Additionally, both the civic and non-profit sectors are also experiencing a variety of new projects, including Arts District Park, Budokan of Los Angeles, Chinatown Park, Federal Courthouse, Figueroa Corridor Bikeway, First and Broadway Park, andTheCenturyPlazaHotel.

Construction is also underway in Inglewood, with a sports and entertainment complex including office, retail, public parks, hotel, movie theatre, and an 80,000-seat stadium. Practical completion is expected by 2019.

Construction remains strong in both the inner CBD and downtown LA as construction cost escalation is predicted to increase 5.4% for 2016. The Residential and commercial construction sectors are showing no signs of slowing down. The abundance of current projects is creating a pipeline of work that will continue into the near future. Despite recent turmoil in the financial markets and slowing growth in China, the Los Angeles construction market and economy as a whole is predicted to continue its strong growth through to 2020.

PhOENIxEconomicgrowthinArizonaaccelerated last year, with overall employment increasing 2.6% for the State, an increase over the 2.0% gain in 2014. Early indicators in 2016 suggest the possibility of stronger gains this year, with Statewide employment increasing faster than the national rate. From the first quarter of 2015 to the first quarter of2016,Arizonahasadded81,300jobs with many of the job gains ineducationandhealthservices;professionalandbusinessservices;trade,transportation,andutilities;and financial activities.

The state is forecast to add approximately 78,600 jobs in 2016 and to sustain that pace through 2018. Leading sectors during the next three years are expected to be similar to recent years but will also include construction. Gains within construction activity reflect stronger residential housing construction activity, with total housing permits rising from 31,850 in 2015 to approximately 47,000 in 2018.

In the past 5 years Phoenix has experienced a consistent increase in home prices, highlighted in a recent home price index showing over a 40%increasefromJune2012toJune2016.

Phoenix has shown continuing growth in construction escalation rates, with RLB’s cost index highlighting quarterly growth rates of 0.80%, 0.98%, 0.88% and 1.02% respectively over 2015. Forecasted economic improvements correlate to an anticipated construction cost escalation growth rate at 4.4% for 2016 and 4.3% for 2017.


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PORTLANDOregon’s economy continues to strengthen, with the state’s real GDP growing at an annualised rate of 3.9% for the first quarter of 2016 over the fourth quarter of 2015. The strengthening economy continues to provide new jobs through a variety of sectors, particularly construction. This increase of labour is emphasised by growing employment numbers and decreasing unemployment rates.

Personal income is showing slow signs of growth, however it is continuing the upward trend. November 2015 recorded the highest tally of jobs added in a single month since November 1996. The monthly total of 9,600 new jobs makes up for more than a 6th of the 60,400 jobs added during 2015’s yearly figures. Unemployment rates continuing the downward trend to a current 4.8% in June2016downfrom5.8%inJune2015. New jobs are being focused within the construction industry

due in part to the aging workforce and the need for replacement construction workers due to baby boomer retirements. The construction market remains strong amongst almost all sectors with an emphasis on apartments and hotels.

Within the construction market, the residential sector has continued its recovery after the global financial crisis. Forecasts suggest that Portland will add 123,000 new housing units between 2010 and 2035. Of the new housing units, 94,000 which make up three-quarters, are projected as apartments or condos. With an influx of apartments the residential market is expected to see rapid growth as well as change. In 2010 roughly 60% of all existing units were single-family homes, by 2035 that figure is forecast to dramatically reduce to 47%.

The health sector has added a 1,672 square meter cancer treatment facility at the Columbia Memorial HospitalinAstoriawhichwillbecompleted and ready for patients in early 2017. The educational sector has seen Open Meadow, a US$4.4 million school and Clatsop CommunityCollegePatriotHall,a US$12.0 million redevelopment project with a practical completion date of September 2016. The hotel sector remains active with several boutique hotels as well as conventional hotel developments underway, including the Porter Hotel.InJanuary2015thePorterhotel was issued a building permit, the 299-rooms, 17 storey hotel is currently under construction and is expected to create a pipeline of work until late 2017.

Construction costs are forecast to rise approximately 4.6% for 2016 and continue this steady trend to 2018.


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23

OregonStateUniversityValleyFootballCentre,USA

Client:HNTB

Architect:HNTB

sAN FRANCIsCOSan Francisco’s GDP is currently growing at 4.3% through 2016, with construction, employment, house prices and population all on the rise. As San Francisco experiences growth across numerous sectors consumer confidence continues to increase, laying a foundation for further growth in the short to medium term.

San Francisco is experiencing continued growth in the job market with the unemployment rate at March 2016 at 3.8%, declining 0.7% from same period in 2015. Employment has risen uninterrupted since 2009 and does not show signs of slowing down, San Francisco has seen 97,000 jobs added over 2015. Employment in the architectural, engineering, and related services in San Francisco have increased consistently since 2012.

Housepricesarecontinuingtoriseas the median house costs US$1.3 million and the median condominium US$1.1 million, 65% more than at the peak of the property bubble in 2008. Current house prices have morethandoubledsinceJanuary2012. To meet the heavy demand of residential construction there is a large pipeline of work over the future periods with three major mega projects being: Parkmerced (5,700 units),HuntersPointwhichincludesthe contaminated Navy shipyards (10,300 units), and Treasure Island (7,800 units).

The market for condominiums may finally be reaching oversupply as the high demand highlighted by thousands of new condominiums

having hit the marketplace and many more thousands in the 5-year pipeline coming online. As of April 2016, the number of condominium listings is up over 40% on a y o y basis. Interest rates continue to remain close to the 2013 historical low

The Transbay Terminal is a major project redevelopment. The multi-billion dollar, 20-year transformation will include urban housing, exciting retail and entertainment venues, commercial spaces, and 326 acres of park land.

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SupermalPakuwonIndah,Surabaya,Indonesia

Client: PT Pakuwon Permai

Supermal Pakuwon Indah 3

Architect: DP Architects Pte Ltd (Singapore) PT. Airmas Asri (Indonesia)

Supermal Pakuwon Indah 4

Architect: PT. Design Global Indonesia (Indonesia)


ASIA

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Economies in emerging Asian countries are strengthening, and improvements in sovereign balance sheets and positive demographic outlooks point to a long-term growth story. In these emerging markets, there is strong demand for infrastructure projects. Many factors are leading the demand for infrastructure within the region. These include: general rises in the standard of living, economic growth and urbanization. Coupled with increases in population that is increasing the demand for residential projects, strong increase in the number of significant roads and transport projects are being seen.

Asia’s GDp growth in 2015 was 5.4% according to the IMF and forecasted to retract slightly to 5.3% during 2016. This has in part been caused by a slowdown in China, described as rebalancing by the IMF and below forecasted growth in Japan.

The pace of growth in China’s construction industry is estimated to have dropped to 5.2% in 2015, down from 6.8% in 2014 and 9.5% in 2013. however, it is not expected to fall sharply in 2016 and 2017, as the authorities attempt to support the economy through an acceleration in public investment programs. Infrastructure projects should also see that the philippines, Malaysia and Indonesia continue to post healthy rates of growth in construction output. Construction and infrastructure activity in Malaysia has grown due to the implementation of the 10-year economic plan, the 2011-20 Economic Transformation program (ETp). The private sector is showing increased confidence in the government’s ability to carry out the ETp, and as such there is more foreign investment in the local market.

Indonesia, philippines and vietnam will be key emerging markets over the next ten years, offering both significant scale and strong growth. While some smaller countries will grow at a faster rate, they will lack comparable scale and have significantly higher risk to the region’s more established markets in China, Japan, Malaysia, hong Kong and Indonesia.


hONG KONG 164

MACAu 137

sINGAPORE 108

BEIJING 89

shANGhAI 84

GuANGzhOu 82

shENzhEN 79

KuALA LuMPuR 74

hO ChI MINh CITy 67

JAKARTA 57

2016 EsCALATION

PEAK zONE

MID zONE

TROuGh zONE

3420

37


Location inteLLigenceASIA

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BEIJINGBeijing’s GDP growth rate retracted to6.9%yoyinQ42015inlinewiththe national GDP growth rate and was 0.2% point higher than that in Q32015.Fixedassetsinvestmentgrew 5.7% y o y while the Consumer Price Index recorded a mild increase of 1.8% y o y. Despite the overall economic slowdown, Beijing’s service sector has grown steadily. Being the regional business hub in Northern China, the rapid growth of the finance industry has been providing strong support to the economy of Beijing.

In 2015, Beijing imposed a ban on new large-scale public developments in the central area of the urban district aiming to reduce urban density in Beijing’s central areas and to shift non-essential functions out of Beijing into areas such as the TongzhouDistrict.Itisexpectedover the next few years, growth in Beijing’s real estate market will be driven by developments in emerging areas. This is creating faster growth in these emerging areas and in turn improvements to the infrastructure. In 2015 alone, two new subway lines began operations and nine more began construction.

According to the "13th Five-year Plan", Beijing will increase the construction of infrastructure starting 297 major projects in TongzhouDistricttospeedupthepaceofurbanizationincludingtheconstruction of a fully functional sub-centre. The sub-centre will spatially support and functionally complement the city centre while being a relatively independent Central Business District. Moreover,Tongzhouisadjacentto Langfang and Tianjin, which are important transport corridors of the Bohai Sea. As a result, building thesub-centreinTongzhouwillgreatlyincreaseBeijing-Tianjin-Hebei(“Jingjinji”)connectivityandthejointdevelopmentsinJingjinjiareas.

InJuly2015,BeijingtogetherwithZhangjiakou won the bid to host the 2022 Winter Olympic Games. Though most of the construction will be carried out in Zhangjiakou, a 12,000 seat National Speed Skating Gymnasium will be built in Beijing on the west side of the Olympic Green and south of the Olympic Green Tennis Centre.

The construction of Beijing Daxing International Airport and Beijing Universal Studio are at full speed and scheduled to be completed in September 2019 and 2020 respectively.

The prices of major construction materials have kept on going down and contractors are willing to offer discounts due to less projects available in the market.

Tender prices in Beijing have been onadownwardtrendsinceQ22015.The downward trend is likely to continue in the coming months. TPI index highlights growth forecasted in 2016.

ChENGDuAccording to Chengdu’s official statistics, Chengdu’s total GDP in 2015wasoverRMB1,080billion;an increase of 7.9% compared to 2014, and was 1.0% point higher than the national GDP growth rate. The Consumer Price Index (CPI) increased 1.3% on a y o y basis, which was 0.2% point lower than the same period in 2014.

In 2015, the Chengdu government cancelled the property purchase restrictions, decreased the mortgage down payment limit, raised the level of provident fund loans and adopted many other favourable policies to support the property market, resulting in an increased turnover.

The turnover of Chengdu’s land purchase was 15,039 acres, an increase of 18.31% as compared with 2014. The "Sichuan Tianfu Xinqu district master plan" was adopted at the end of 2014. Shuangliu County which is a major area in the national district of Tianfu Xinqu has become a district and incorporated into the Tianfu Xinqu formally as of December 2015 and is expected to upgrade and perfect the facilities of the region.

Due to serious over supply and a weak demand, the prices of construction materials continued to decline in 2015. Ready-mixed concrete prices fell by 6%, and steel prices fell by 27% over 2015. The overall level of prices of building materials fell 3% compared with 2014 and was the lowest in five years. The average labour wages were relatively stable in 2015, rising 2%, as compared with 2014. Overall tender prices fell correspondingly in 2015 and are expected to continue to fall moderately in 2016. Increased by 0.3% in 2015 and are expected to drop 1.10% in 2016.


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GuANGzhOuGuangzhou'seconomygrew8.4% y o y in end 2015 picking up slightly since the beginning of 2016. Consumer price inflation resumed a rising trend and remained moderate at1.7%inQ42015onayoybasis.

As property developers became more wary about the economic outlook, the pace of development had been losing momentum. Gross area of developments commencing construction in end of 2015 saw a decline of 0.3% compared with end of 2014.

In response to the prolonged weakening of the property market which was a crucial driver of the economy, the Central Government has recently implemented various stimulus measures such as lowering transaction taxes and reducing the minimum down payment requirements for house purchases to propupthemarket.Howeverthesemeasures were not extended to the first-tier cities, where there was no pressing need to clear inventory. AlthoughGuangzhou,afirst-tiercity,did not benefit from the measures, the policies gave a clear message of the supportive attitude of the Central Government towards the property sector, which in turn has boosted the property investment sentiment in general.

In an effort to forge the city as an electronic commerce business hub in China, the local government has planned to develop a new CBD designated for headquarters of leading E-commerce enterprises. The planned scale of the district was unveiled to be as large as 3 million square metres of built gross floor area. 14 land parcels out of a total of 19 have been sold, buyers of which are all leading Chinese companies in the E-commerce sector including names such as Tencents and Alibaba. According to the land leases, all these developments are required to commence construction almost simultaneously in 2016.

Thanks to the glut of steel demand resulting from the economic downturn, steel prices have been falling substantially. Compounding this with the anaemic property market has dragged down the tender prices which saw a magnitude of up to 5% fall in 2015. With a marginally positive outlook for the property sector and material prices to become relatively stable, tender prices are expected to fluctuate within a narrow range in 2016.

hONG KONGHongKong’seconomicgrowthcontinued to weaken and only grew moderately by 1.9% y o y in realtermsinQ42015,comparedwiththe2.2%increaseinQ32015.Overall consumer prices rose by 2.7%inJanuary2016overthesamemonth a year earlier. The seasonally adjusted unemployment rate and underemployment rate stood at 3.3% and 1.4% respectively in November 2015toJanuary2016.

According to RLB’s Tender Price Index, which measures tender price movements of builder’s works in the privatesectorinHongKong,therewas an increase of 0.8% in tender pricesinQ42015.Onayoybasis,the increase was 4.3%.

TheconstructionindustryinHongKong recorded strong output during 2015.However,therehavebeendoubts that such high output could be sustained in the coming years as there are uncertainties in both the global and regional economies. The gradual completion of major infrastructureprojectsinHongKong and the gaming developments in Macau has resulted in more contractors being willing to submit competitive bids in order to maintain their order books.

The continual weak material prices have helped to keep the construction cost from rising as rapidly as in the pastfewyears.However,sincetheshortage of skilled workers has yet to be resolved, and with the expectation that the Legislative Council will approve funding for over 70 capital work projects in the next few months, it is unlikely that there will be a significant decline in construction cost in the near future. The most likely trend is that there will only be moderate fluctuations in tender prices this year.


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hO ChI MINh CITy Vietnam’s economy in 2015 continued its steady growth from 2014 and emerged as the best performing economy in the Southeast Asia region. The overall GDP in 2015 expanded 6.7% and exceeded the government’s expectation of a 6.2% expansion. The construction sector expanded 10.8%, the highest in five years.

Due to weak oil prices CPI increased 0.63% y o y in December 2015, marking its lowest level since 2001.

Vietnam officially joined the Trans-Pacific Partnership (TPP) in February 2016. The World Bank projects that the country’s GDP might improve by an additional 8.0% over the next 20 years. The government is optimistic and is projecting the economy to grow between 6.5% and 6.9% in 2016.

According to the Foreign Investment Agency, the total FDI in 2015 amounted to US$22.8 billion, with Singapore, Republic of Korea, MalaysiaandJapanbeingthesomeof the largest investors. The Ministry of Planning and Investment reports an accelerated pace of construction for FDI and non-FDI driven projects across cities and provinces.

Schneider Electric has begun construction on the first phase of itsnewplantinSaigonHi-TechPark(SHTP)inJanuary2016whileSamsung has doubled its investment for upgrading works in its existing hi-tech complex in the same city.

The authorities have set aside US$5.54 billion for transport and infrastructure projects through 2020. Works on the city’s first metro line linking District’s 1 Ben Thanh Market and District 9’s Suoi Tien Theme Park are currently underway and should be fully operational by 2020.

As the country attracts more trade opportunities as well as tourism, there is an urgent need for a newairportintheHoChiMinhmetropolitan area. The recently approved Long Thanh International Airport (LTIA) project will be located 43kmfromHoChiMinhCityandconstruction works will span over a period of 34 years (2016 – 2050) in three main phases at a budget of US$16.03 billion. Phase 1 is scheduled for completion by 2025 to help reduce traffic congestion from the current Tan Son Nhat Airport. It will eventually take over as the lead airport in Vietnam upon its full completion.

The residential market is anticipated to have an additional 57,000 apartments completed by the end of 2016. The office market stayed subdued in 2015 with only one new Grade A building (Vietcombank Tower)inHoChiMinhCity.In2016,the supply for office buildings are projected to rise as demand from foreign companies will spur take-up, given the current momentum of economic recovery and increasing FDI into the city. Industrial properties are expected to see steady growth along with more multinational corporations opening and expanding manufacturing facilities in Vietnam to take advantage of the TPP Agreement and other trade benefits.

Barring any unforeseen market conditions, building tender prices in HoChiMinhCityareanticipatedtoincrease by between 3.0% and 6.0% in 2016.

JAKARTA GDP in 2015 expanded 4.8%, but fell short of the target of 5.7% set in the state budget. The global slowdown, weak domestic consumption, weak investments and exports as well as the removal of most of the fuel subsidies underpinned the growth for 2015. While its economic growth remained among the highest in emerging market economies at 4.8% in 2015, it was also its weakest performance in 6 years despite amodestpick-upinQ42015.Inflation fell to 3.1% y o y in 2015 and remained within its target range of 3.0%-5.0%.

For 2016, the central bank expects the economy to expand between 4.2% and 5.6% while keeping inflation below 4.0%.

The construction sector's GDP contribution increased to 16.1% y o y in 2015. Government capital spending wasacceleratedinH22015andacoordinating body, the Infrastructure Priorities Development Acceleration (KPPIP) was set up to focus on top priority projects. The government increased its budget allocation for the infrastructure sector in 2016 to 290 trillion rupiah (US$22 billion), making it the biggest infrastructure allocation in Indonesia’s state budget history thus far.

The joint venture between an Indonesian consortium of four state-owned companies and China Railway International Co. Ltd is expected to commence construction of the Jakarta-BandungrailinQ22016aftera two-month delay due to permitting and concession trouble. This would become Southeast-Asia’s first high-speed rail service. The rail spans 142.3km, costs about 76,203 billion rupiah (US$5.7 billion) and is slated for completion in year 2019.


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ExistingconstructionworkinJakartaincludes the International Financial CentreJakartaTowerTwo.TheprojectisslatedforcompletioninQ12016. The 48-storey building will offer about 50,200m2 of office space upon completion. The tower is one of 12 office projects under way in the CBD as of end-2015.

Demand in the property sector cooled in 2015 along with the slow economic growth. Consumer income as well as consumer confidence weakened amid the high interest rate environment and weakened Indonesian currency. Persistent uncertainties surrounding tax regulations governing property in the beginning of 2015 also added to the weaksentiment.Howeverwithrapidurbanisation, younger demographics andtherisingmiddleclassinJakarta,the demand for affordable residential property is expected to see steady growth.

The construction of several new retail developments is expected to be completed in 2016. They include Pantai Indah Kapuk Mall in North Jakarta,ShoppingMall@PancoraninSouthJakarta,NeoSOHOMall(PodomoroCity)inWestJakartaandBassuraCityMallinEastJakarta.

Barring any unforeseen market conditions, building tender prices in Jakartaareanticipatedtoincreasebyabout 1.0% to 4.0% in 2016.

KuALA LuMPuRMalaysia's GDP came in at 4.5% in Q42015,slowerthanthe4.7%inthe preceding quarter. The overall economic growth for 2015 managed to perform within the government’s revised GDP forecast of 4.5% to 5.5% as it slid to 5.0% from the 6.0% achieved in 2014. Domestic demand helped to offset the slumping oil prices and commodity prices. Affected by political issues and battered by financial market volatility and energy prices slowdown, the ringgit performed below par in 2015 as it depreciated to a multi-year low of 4.477 ringgit against the US dollar in September that year.

Short to medium-term prospects for the construction sector remain sustainable, with increasing state and private sector spending as the government releases more initiatives to spur industry growth. The government is expected to spend another RM1.4 billion to build and upgrade rural roads linking to Kuala Lumpur. Besides an extensive long term development plan that includes a high-speed rail link to Singapore, some of the multi-year mega projects include the RM11 billion plans to build the town centre for wired-up Cyberjaya city south of Kuala Lumpur and a RM7 billion airport township, dubbed the Aeropolis, around Kuala Lumpur International Airport (KLIA).

The construction of the 52.2km long KL MRT line 2, also known as the Sungai Buloh-Serdang-Putrajaya (SSP)line,isduetobegininJune2016. Comprising of 36 stations, it is targeted to start operation in the last quarter of 2022. Construction-related industries should also see some positive spill-over effect from the infrastructure projects. Demand for affordable housing is expected to continue to support the construction industry.

The 11th Malaysia Plan (11MP) reaffirmed the strong pipeline of construction jobs till 2020 with RM83 billion worth of infrastructure jobs to be awarded in 2016. The Construction Industry Development Board (CIDB) expects growth to moderate to 10.3% in 2015 and 7.16% in 2016 following the average annual growth of 13.5% for 2012 to 2014.

Foreign labour in construction makes up 19% of the total number of foreign workers in the country, based onstatisticsdonebytheHumanResource Ministry. The recent abrupt suspension of the foreign labour policy to hire an additional 1.5 million foreign workers into the country remains an issue for labour-intensive sectors until the government is able to ascertain its actual foreign manpower needs as well as review the two-tier levy programme for foreign workers.

Barring any unforeseen market conditions, building tender prices in Kuala Lumpur are anticipated to moderate to between +1.0% and -1.0% in 2016.

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OasiaHotel,Singapore

Client: Far East Organisation

Architect:WOHAArchitects


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MACAuAccording to the Macau government’s Statistics and Census Service, GDP for Q42015decreasedby14.4%yoy in real terms. The unemployment rate forNovember2015toJanuary2016stood at 1.9%, same as that in October to December 2015.

With the rapid contraction of the gaming and tourism industry, Macau’s economy has been in decline and the construction output in the coming months is expected to fall rapidly. The government is planning to invest in a number of infrastructure and social projects including building 28,000 public housing units within the new reclamation Zone A. The Light Rail Transit project as well as worksassociatedwiththeHongKong-Zhuhai-Macao Bridge is well underway. These works will provide support to the construction industry in the next few years. Overall, it is expected that tender prices in Macau will increase moderately in 2016 by 2.02%.

shANGhAIShanghai’s industrial transformation accelerated steadily in 2015 as did Shanghai’s overall economic growth. Shanghai's GDP amounted to over RMB 2,496 billion in 2015, a y o y growth of 6.9%.

Real estate investment in Shanghai amounted to nearly RMB 347 billion, a y o y growth of 8.2% and represented 54.6% of total investment in fixed assets in Shanghai. Total investment in residential projects was over RMB 181 billion, a y o y growth of 5.1% while total investment of offices and commercial projects was over RMB 65 and RMB 46 billion, a y o y growth of 22.4% and 2.1% respectively. The increase in the growth of investment in offices was significantly higher than residential and commercial sectors.

In 2015, 100 key projects were completed in Shanghai with a total investment of RMB 45.8 billion yuan. They are all important contributors to the local economy.

In 2016, Shanghai government will launch 19 large projects, each involving over RMB 1 billion covering civil aviation, advanced equipment, information technology, oceanographic engineering, and automotive industries.

Meanwhile, the Shanghai Economic and Information Technology Commission will draft a three-year plan to launch large-scale projects and to attract investment. The city will promote new energy vehicles, replace old taxis and buses, speed up Metro construction, and introduce bidding procedures for public hospitals.

Projects under construction include HongqiaoTransportationCentrewithexhibition, office and commercial areas;Disneylanddevelopment,whichistargetedtoopeninJunethisyear;QianTandevelopmentcentre with retail, hotel, office and school;XuHuiCentralUrbanComplexdevelopment with retail, office, hotelandserviceapartment;XuHuiBinJiangCentreUrbanComplexdevelopment with retail, office, art and culture, recreation and high-end residential.

Tender prices have seen a downturn sinceQ32014,anddeclinedfurtherby 4.5% in 2015. The prices of major building materials such as steel, cement, concrete and sand have been falling in the past two years. It is expected that the downward trend of tender prices will continue in the first half of 2016.


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shENzhENShenzhen'sGDPgrowthfor2015was8.9%. The total amount of GDP as at the end of 2015 was RMB1, 750 billion that will soon surpass that of nearby HongKong.ConsumerPriceIndexin 2015 rose moderately by 2.2%. With an increase in population from 18 million to 21 million people and the easing of liquidity by the Central Government, the average new home priceinShenzhenincreasedby39%in2015 to RMB 42,591/m2 that was the highest among all cities in mainland China.

One of the tallest buildings in mainland China, the Ping An Finance Centre which is more than 600m tall will be completed and opened later this year. The ancillary tower next toit,whichcomprisesaParkHyatthotel and serviced apartments, is anticipated to be completed by the endof2017.Shenzhenhasenjoyedthe new economic glow, with the city nick named "China's Sillicon Valley", and is home to headquarters for about 10% of new IT setups as well as Tencents, Dajiang Innovation TechnologyandHuawei.Manymixeduse developments including new developmentsinQianhaiandtheredevelopment of older existing areas areunderway.QianhaiisafreetradezoneinShenzhen,intendedasatestbedforChina'syuanliberalizationand other financial reforms, and has attracted many foreign banks and leading financial institutions in the past two years.

With construction of existing projects in full steam and new projects being rolled out continuously in the near future, construction activitiesinShenzhenareexpectedto maintain at the same level in the next few years. Due to oversupply in industrial production along with the severe drop in oil prices and raw materials, material costs went down significantly in 2015 especially the cost of steel bar reinforcement. This was somewhat offset by the increase in labour costs. There have been signs since the end of 2015 indicating material prices have bottomed out. The overall effect is likely to be a moderate fluctuation in construction costs in 2016.


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sINGAPORESingapore's economy slackened in the later three quarters of 2015 after performingwellintheQ12016.Theeconomygrew1.8%yoyin4Q2015, unchanged from the preceding quarter. For the whole of 2015, Singapore's GDP showed the weakest rate of growth since 2009 as it expanded by a modest 2.0%. Amid the volatile global financial market and plunging oil prices, growth outlook is expected to stay mutedin2016beyond1H2016.TheMinistry of Trade and Industry (MTI) maintains 2016’s GDP growth rate at 1.0% to 3.0% as it expects global growth in 2016 to be supported by strengthening growth in advanced economies, despite challenging conditions in the emerging markets.

Total construction demand moderated to a preliminary estimate of S$27.2 billion in 2015. The construction sector expanded by 2.2% yoyin4Q2015,ascomparedtothe1.1% growth in the previous quarter. Overall growth in the construction sector moderated to 2.0% in 2015, down from 3.0% in 2014 as the total volume of private industrial and residential building activities retracted.

Construction demand for commercial developments in 2016 is projected to remain soft as weak global economic conditions persist. BCA estimates total construction demand to be between S$27.0 billion and S$34.0 billion for 2016, of which 65% of the construction contracts are expected to come from the public sector. Private sector projects will include the upgrading works from theHomeImprovementProgramme(HIP)forHDBflats,thenewNationalCancer Centre, State Courts' new buildingatHavelockSquare,JTC's

IntegratedLogisticsHub,PUB'swater reclamation and sewerage projects, Changi Airport's 3-runway system, improvement works to the Kranji Expressway and Pan-Island Expressway, and the remaining contracts for the Thomson-East Coast MRT line. For 2017 and 2018, average construction demand is expected to be sustained at between S$26 billion and S$35 billion, and S$26 billion to S$37 billion in 2019 and 2020.

Construction costs will continue to face pressure from the impact of regulatory charges and higher labour costs in the tight labour market. Labour costs are expected to rise as construction firms are pressured to step up on technology adoption and workforce upgrading. The foreign worker levy (FWL) willresumeon1July2016afteratemporary deferment in 2015. BCA’s TenderPriceIndex(TPI)for4Q2015declined by 1.0% from the preceding quarter. Looking ahead, BCA expects tender prices to become even more competitive as the shrinking market will see competition intensify among contractors. Based on current market trends and barring any unforeseen changes in market conditions, building tender prices in Singapore is expected to grow between -3.0% and -2.0% in 2016.

34

TheStage,London,UnitedKingdom

Client:GalliardHomesandCainHoyJointVenture

Architect: Perkins + Will


EUROPE

35


TheStage,London,UnitedKingdom

Client:GalliardHomesandCainHoyJointVenture

Architect: Perkins + Will

Europe’s growth for 2015 was slower than anticipated with a continued drop in commodity prices while some individual countries had robust growth. Europe is forecast to remain stable with a slight decline from 2.1% in 2015 to 2.0% in 2016. Central and South Eastern Europe have experienced stable growth while Russia and the Commonwealth of Independent States (CIS) have reclined. The United Kingdom saw moderate growth slowing from previous years. Germany, France & Italy had slower than forecast growth.

GDp growth for the UK is forecast to be 1.9% down from 2.2% in 2015. The potential economic consequences of the Brexit referendum are still being debated however.

Within the UK there is evidence of a slowing of growth in private residential and commercial schemes as investors and developers take stock of the referendum decision to leave the European Union. A clearer picture has now emerged of the Brexit plan, timetable and impact and this, together with the Government’s commitment to infrastructure and affordable housing should have a stabilising effect over the next six months.

The value of construction work done for all trades in 2015 was an 11% increase on the previous year’s values. The largest increases for project type were bridges and tunnels, water projects and then utility projects for electricity and telecommunications.

Ireland remains the highest GDp growth in Europe at 7.8% for 2015 and this is forecast to retract to 4.9% in 2016. France is forecast for 1.1% in 2016 and Germany at 1.5%. Greece continues its recovery and is forecast at -0.6% for 2016.

Central Eastern Europe has had robust growth with poland, Slovak Republic and the Czech Republic reporting the strongest growth of 3.6% for both poland and the Slovak republic and 4.2% for the Czech Republic. The 2016 forecast for most is to remain steady with the exception of the Czech Republic to decline to 2.5%, hungary to decline to 2.3% and Slovenia to decline 1% to 1.9%.

Russia and CIS are set to remain subdued due in part to the slowdown in China and the sanctions on Russia but also the continuation of pressure on commodities. GDp for the CIS was -2.8% for 2015 and is forecast to improve slightly in 2016 to -1.1%. Russia is set to increase from -3.7% in 2015 to -1.8% in 2016.


OsLO 226

BERLIN 179

DuBLIN 171

LONDON 166

PARIs 166

BRussELs 162

ROME 161

BRIsTOL 138

AMsTERDAM 137

MANChEsTER 133

BIRMINGhAM 129

MADRID 127

MOsCOw 107

wARsAw 102

PRAGuE 99

BuDAPEsT 95

2016 EsCALATION

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TROuGh zONE

2933

15


Location inteLLigenceEUROPE

36


AMsTERDAM Construction in the Netherlands is experiencing good growth following adeeprecession;2014wasstillseeing construction volumes around 20% down on 2008 figures. This growth is encapsulated in the 4.3% growth that was witnessed in 2015. A large portion of this growth came from residential projects, with an estimated 20-30% increase in prices in Amsterdam.

The commercial and infrastructure sectors are also experiencing growth, but not at the same speed with the government remaining cautious in market conditions that remain challenging. As a result of this, those operating in these sectors are facing strong competition resulting in tight margins.

BERLINThe Germany economy in general continues to remain strong. We are seeing ongoing investment in all sectors, from local and international developers and investors alike. This has led to the construction industry increasing its growth from the 1% gained in 2015 to a predicted 2.1% in 2016.

The retail, commercial, hotel, logistics and residential sectors are performing well. Current demand for investment projects/properties for international investors cannot be met. This heightened level of activity is leading to a shortage of construction capacity and increases in tender and construction prices.

In particular the residential sector is seeinganincrease;thenumberofresidential building permits granted in Germany jumped by nearly a third to over 84,000 in the first three months of 2016. A large proportion of these can be directly linked to adjusted immigration policy.

BIRMINGhAMThrough the first half of 2016 the construction market in Birmingham remained buoyant with increasing commercial activity including significant speculative office projects as well as the continuation of speculative industrial development activity. Input costs continued to drive inflation as well as capacity pressures in key specialist trades. Inevitably the construction sector in the Midlands is diverse and there was a slowdown in activity in some sectors,sizesandtypesofprojectinthe run up the summer referendum. Following the UK’s Brexit vote, the industry has paused for breath trying to foresee the impact on pipeline and projects coming forward, and thus the impact on construction costs. The complex picture of currency fluctuation, uncertainty in mid-term pipeline and existing capacity constraints is likely to take a while to settle into any clear pattern. Short term stagnation and modest decline in all-in tender price inflation is expected into 2017. Notwithstanding, the region generally appears to have a cautiously optimistic outlook. The positive impact resulting from the “halo”effectofhighprofilerelocationdeals from London is expected to support commercial and residential development in the City. Public sector projects are still coming forward and the region’s exporting manufacturing industry hoping to benefit from a weak pound.

BRussELsThe overall outlook for Belgium’s construction sector is somewhat subdued with the Federal Planning Bureau predicting slow growth. In contrast with the majority of European countries, the construction sectors growth is underperforming compared to the rest of the economy, with just a 1% increase expected in 2016. Belgium is also seemingly bucking the trend with regards to residential sector growth with construction companies currently expecting a decline in the completion of new buildings this year due to the number of residential permits being in decline y o y.

In the non-residential construction sector, a y o y decrease in the number of permits was recorded in 2015. Government investment remains low compared to the European average. Infrastructure building is still facing decreasing order books and prices.


37


BuDAPEsTIn the period leading up 2016, incoming European funds has meant very strong growth and optimistic market forecasts. As European Find investment reduces, growth is still predicted up until 2020, however, this is beginning to slow with a significant decrease in construction output at the beginning of the year. This is expected to reduce price inflation pressures in property and construction.

There are signs that international developers and investors are returningtoHungaryafterafewvery weak years, but growth is still heavily dependent upon the larger infrastructure projects at present.

DuBLINIreland is predicted to be the fastest-growing economy in Europe in 2016 according to recent figures from the European Commission, with the EU’s executive arm expecting the economy to grow by 4.9 per cent this year.

Ireland’s construction sector is expected to grow by more than 20 per cent in 2016 – this is less than half of the unsustainably high peak recorded in 2007. The industry is now estimated to be worth €15 billion in 2016, with costs rising by 7 per cent throughout the year.

Both public and private projects are continuing to experience the levels of growth achieved in 2015 however the residential sector has been slower to recover.

Commercial developments and fit-outs are strong, particularly in Dublin, and many previously abandoned projects are back under way.

The residential sector however appears to have been directly affected by increased construction inflation levels and a lack of skilled resources resulting in a major housing crisis evident throughout the country. Construction inflation levels are ahead of general inflation with average construction build costs continuing to increase. The Society of Chartered Surveyors Ireland recently compiled a study highlighting the difficulty to develop residential units within the parameters set by the loan to income/loan to value ratios (Central Bank residential mortgage lending) combined with the actual cost to build a house in Dublin.

While the construction sector as a whole is experiencing a healthy recovery in 2016 there are considerable factors that need to be addressed – the skills shortage and construction costs being key issues to be rectified to aid sustainable growth within the Construction Sector.

LONDONThe full effect of Brexit is yet to be fully established albeit there has been an immediate reaction by the institutions to stall any new transactions. There has been a reduction in the number of central London office leasing transactions as a result of market uncertainty. Whilst these appear to be unsettling statements the amount of vacant office space in Central London remains far lower, almost half, than that prior to the last economic downturn in 2009. This should help to preserve a subdued but sustained demand for good quality office space.

The new Mayor of London made theprovisionofHousingakeyfeature of his election campaign. The requirementfor“affordable”Housingat the rate of supply that the mayor has suggested will pressure the existing construction supply chains.

There is an indication that the amount of overseas investment into the London residential sector is slowing particularly at the highest, prime, levels. There is the possibility that the low level of the pound in comparison with other currencies may sustain overseas investor interest in central London.

38

OneQueenCarolineStreet,Hammersmith,London,UnitedKingdom

Client: Landid

Architect: Penson


39


MADRIDThe construction sector in Spain grew by 2.5% in 2015. In 2016 the upturn is estimated to be a more palpable 4.4%. The upcoming elections in Spain are key. If the post-election civil engineering sector remains a focus for future government, the medium term is likely that the construction is able to maintain rates of growth higher than that of the economy (4% in 2017 and 3.3% in 2018).

Whilst these forecasts could be described as very substantial progress, in a sector very badly hit by the 2008 financial crisis, it is anticipated that it will take up to 10 years to recover to construction output in line with that financial crisis.

MANChEsTERManchester’s economic growth prospects are still strong. Manchester, famous for its industrial heritage and Manchester United Football Club, has become the UKsfastestgrowing“Powerhouse”city with £56 billion gross value added (GVA). Its property market goes from strength to strength with planning permission recently granted for six central skyscraper blocks of apartments. Due to the UK’s and regional housing shortage, investors are attracted to these residential developments and are keeping the residential property sector in the region very strong. Manchester is attracting substantial international investment on schemes such as Airport City, Manchester Life (residential projects) Media City, NOMA (residential/mixed use developments), Spinningfields (commercial developments) and University expansion. It is at the centreofthe“£50BillionNorthernPowerhouse”,whichisacollectionofNorthern UK cities working together designed to encourage investment and rebalance the economy of the country to reduce its reliance on London.

MILANInternational investment has moved back into Italy, coming predominantly from America, Asia and the Middle East, with interest concentrated on Milan and Rome, along with main tourist destinations. European investors are also looking in secondary markets.

ISTAT recently indicated that inflation will remain negative into autumn and the overall construction industry growth is essentially nil for 2016 with perhaps modest growth predicted for 2017.

MOsCOwThe economic climate in Russia remains depressed and is likely to remain so for at least as long as the economic sanctions remain in place. Howeversincethebeginningof2016there has been a general increase in interest in construction and property investment in the region.

Whilst modest interest remains from foreign investment, most activity is driven through local client and this is expected to continue. We are experiencing limited activity across the public and private sectors, however, of particular note is growth being experienced within the industrial sector.

OsLOThe downturn in the Norwegian oil industry continues, with demand from the petroleum industry reducing since 2013. This trend was compounded by the sharp drop in oil prices during the autumn of 2014. The current economic downturn began at the same time oil prices plunged. In 2015, mainland Norway’s GDP rose by just 1.0 per cent, and we expect even slightly lower growth this year. Unemployment rose sharply from spring 2014 to autumn 2015, but the increase has since levelled off. Slightly higher economic growth going forward will mean that unemployment is likely to peak during the year, with an annual average of 4.7 per cent of the labour force.

From early 2017, mainland Norway’s GDP will surpass trend growth, which is estimated at about 2 per cent. Employment is also predicted to pick up, and unemployment is forecast to gradually fall to 4.3 per cent by 2019.

PARIsEconomic growth is slow in France, with a 3% reduction in construction activity in 2015 resulting in sluggish 1.1% of growth. This comes as a consequence of low household purchasing power, persisting high unemployment and public budget constraints.

With this drop in output, French construction companies are seeing revenues and investments remaining low and prices and profitability both beingsqueezed.Thepublicsectoris focussing heavily on commercial strategy and currently leaning increasingly on cost reduction and cost management for public operator.

40

LusailCity,Lusail,Qatar

Developer: Lusail Real Estate Development Company (LREDC)


MIDDLE EAST

41


The UAE has recorded strong growth for 2015 at 3.9% however this is forecast to recline to 2.4% in 2016. The continuation of lower oil prices has seen a reduction in growth forecasts for most oil producing countries. The oil price shock is unprecedented and recently many countries have adopted deficit reducing measures. The medium term fiscal positions are likely to remain challenging. These challenges will see a reduction in spending and confidence with the on flow effect of rising unemployment and slow wage growth to further fiscal pressure. policy measures are seen as the answer to minimising the impact of the challenges.

Rapidly expanding airport hubs in Dubai, Abu Dhabi and Doha are not only grabbing market share from heathrow but also other longer-established rivals in Europe as more international air traffic is routed through the Arabian Gulf.

The UAE continues to negotiate a free trade agreement with China which will boost the economic stability in the region.


DOhA 118

ABu DhABI 113

DuBAI 110

RIyADh 110

2016 EsCALATION

17

6

5

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42

BLVDCrescent,Dubai,UnitedArabEmirates

Client:EmaarPropertiesPJSC

Architect: Brewer Smith Brewer Guld (BSBG)

Location inteLLigenceMIDDLE EAST

43


ABu DhABIGDP growth for 2015 in Abu Dhabi was 7.7%. Abu Dhabi is continuing to diversify the contributions made by each sector to GDP. While GDP growth remains positive, the need to shift from hydrocarbon reliance is a focus for the Abu Dhabi economy. Non-oil activities lifted from 49% of GDP in 2014 to 65% in 2015 reflecting the intentions of Abu Dhabi’s economic agenda.

According to the Statistics Centre, construction GDP has increased 4.53% through 2015 due to continuation of infrastructure projects. The 2015 increase is slightly down from 2014 increase to GDP, which was 4.90% and is viewed as the cautious response to lower oil prices.

Construction contributed 12% of the total GDP for Abu Dhabi in 2015 and was down slightly from 12.2% in 2014 but is considered stable in the current climate.

The two non-oil producing sectors that have seen the largest increase in GDP are manufacturing and the financial and insurance sector. Diversifying economic contributions from non hydrocarbon sectors is a key goal of current macroeconomic policy and this is starting to show in figures. Manufacturing increased by 11.23% during 2015 and has increased by 26% since 2011. The financial and insurance sector increased 9.26% for 2015 but has increased a significant 111% since 2011.

Within the construction sector, a joint venture between Australian companyTotalAllianceHealthPartners International and UAE based KEFHoldingshasbeenestablishedtoformKEF-TAHPIDesignStudio.This new venture has formed to provide a design and manufacturing facility for producing prefabricated components of healthcare facilities including concrete structure, whole room pods, wall packs, staircases etc. A new US$100 million (Dh360 million) facilityatJebelAliisscheduledfor commissioning in 2016 to manufacture prefabricated healthcare modules.

DuBAIDubai experienced GDP growth in 2015 of 4%, according to Department of Economic Development. The strengthening USD has put pressure on growth due to its effect on tourism, spending, construction and real estate.

Dubai is hoping to expand the tourism sector as government spending in recent years on infrastructure has seen large projects now coming to fruition, including the new airport. The aviation industry is expected to contribute 32% to Dubai’s GDP by 2020, according to government estimates.

Real estate and construction account for about 21% of GDP, according to Dubai Department of Economic Development. With the pressure on oil prices, there has been a slowdown in awarded projects. As existing projects continue, there is a degree of caution in the market about the launching of new projects.

Growth in the emirate was buoyed by the continuation of mega-projects, including the US$545 million phased Dubai Water Canal Project. . Once the project is concluded, likely in late 2016, it will connect the Business Bay development with the Gulf.

It is expected that the year 2016 will remain a highly competitive market with tender return prices expected to be lower than they were from Q32015whiletenderpricesareforecasted to increase 3.0% in 2016. Concrete is relatively stable although steel prices are most notably are off their highs from last year by some 15%. Both reinforcing steel and structural steel have witnessed notable pullbacks in prices.

RIyADhSaudi Arabia’s GDP growth in 2015 was 3.35% and the General Authority for Statistics has forecast 1.2% for 2016. Construction GDP growth for 2015 was 5.6% and is forecast to retract during 2016. Sentiment remains slightly cautious due to the effect of lower commodity prices.

Construction contributes approximately 8% of Saudi Arabia’s GDP. Saudi Arabia has allocated US$43.8 billion for transport, telecommunications, water, agriculture and other related infrastructure. Additionally, it has several railway projects in the pipeline. More than 80 megaprojects, each worth at least US$1 billion, are underway or planned for completion by 2030 in Saudi Arabia making it the Middle East’s largest construction and build market by a huge margin.

The past five years has seen some volatility in material prices. 2015 saw decreases in pricing for various building material including cabling, cement, steel and ready-mixed concrete. Cabling and steel had the largest decreases over 2015 with -11% and -16% respectively. Over the past five years, cabling has fallen by more than -18% and steel has fallen more than -22%. Timber saw a small increase in 2015 rising by 0.65% in 2015 included in the 9.71% increase since 2011. Concrete prices fell by 1.38% during 2015 but have now increased 6.48% above 2011 prices.

44

TeOro,GlenInnes,NewZealand

Client: Auckland Council

Architect: Archimedia


OCEANIA

45


The Oceania region remains resilient to some of the global fiscal pressure affecting growth in other parts of the world. Australia and New Zealand have both through 2015 felt the pressures of large industry sectors suffering downturns while other industry sectors have offset these downturns and reported growth. The GDp growth for Australia in 2015 was 2.5% and is forecast to remain stable at 2.5% through 2016 as reported by the IMF. New Zealand was reported to have 3.4% growth to GDp in 2015 and is forecast to weaken to 2.0% during 2016.

Australia is still stabilising since the end of the mining boom and of course the continuing fall in commodity prices is creating more pressure on the western and northern states. For the eastern states which were less reliant on mining for their contribution to GDp, growth has not been offset by the reduction in mining and whilst modest, growth has been more stable. Mining currently contributes 7% to Australia’s GDp.

house prices are continuing to rise across Australia with the Sydney and Melbourne leading the way as demand from population growth creates increased need for new and existing dwellings with 2015 reporting a 1.3% increase to the population.

Infrastructure is high on the agenda as it is a federal election year and the states look to cement deals to boost their own economies while federal politicians look to gain votes. Unemployment is currently at 5.7%

The construction industry has seen increases in all eastern states while the mining states have had little to invest as those states retract. Residential construction is leading the way when compared to other industry sectors with the significant growth in Sydney, Melbourne and Brisbane. As residential appears to have peaked some of the infrastructure projects that have been proposed will give continuity to construction if other sector remain subdued.

New Zealand has had increases in construction and tourism, however they also had the pressures of lower commodity prices with less demand and drought affecting the agricultural sector. The dairy industry in particular has been declining for some time and is forecast to continue in a subdued state. The New Zealand dollar has been forecast to fall slightly through 2016 which will support exports, primary industries and tourism.

With low inflation, falling fuel prices and modest wage growth of 2.0% as well as lower interest rates all equates to more expendable income for households and support for further growth.

The construction industry has seen significant growth, particularly in Auckland. Despite the Canterbury rebuild nearing its zenith, housing across New Zealand is still growing and adding to the growth of the construction industry as a whole. There are a number of infrastructure projects spurring the industry on and with this and household spending business confidence is higher adding further commercial interest in the construction industry. The increase of record high net immigration of 1.5% is adding further demand to housing needs giving a boost to construction and house price growth despite marginally lowering the GDp per capita.

One of the outcomes of the current climate is the pressures that are arising appear to be offset by the positives fairly quickly with the forecast stable in the worst case and the potential growth above the initial forecast of 2.0% for 2016.


syDNEy 127

DARwIN 126

CANBERRA 118

ChRIsTChuRCh 118

PERTh 118

MELBOuRNE 115

ADELAIDE 111

wELLINGTON 110

TOwNsvILLE 109

AuCKLAND 105

BRIsBANE 105

2016 EsCALATION

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29

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46

SouthAustralianHealthandMedicalResearchInstitute(SAHMRI),Adelaide,Australia

Client:SAHealthMajorProjectsOffice

Architect: Woods Bagot

Location inteLLigenceOCEANIA

47


ADELAIDEDiversifying the economy for South Australia seems to be the key challenge to future proofing the state’s economy. With falling construction numbers, reductions in manufacturing, increases to unemployment and lower consumer sentiment the state needs to rely on alternatives in the short to medium term to create some level of stimulus.

The South Australian economic outlook has not been good for some time however the recent announcement that 12 new submarines will be built in Adelaide is a welcome boost for the economy. With the recent announcements declaring Arrium has been placed into voluntary administration and the potential closure of Whyalla ore mine and steel works is not good prospect for Whyalla or the state.

South Australia is due to face further pressures when car manufacturing is set to cease all works in some 18 months’ time and the power plant at Port Augusta is scheduled for closure and demolition. The submarines contract is hoped to offset some of these pressures with the creation of approximately 1700 jobs and the continuation of 1100 jobs that may have otherwise been lost.

South Australia has well established industries for tourism, education, health, arts and sport however these industries are considered smaller contributors to GDP and therefore need to be expanded as alternatives to increase growth for the state. Two major education projects at the University of South Australia and the University of Adelaide both recognise the commitment to growing alternative industries to manufacturing.

Construction work done has seen decreases in residential, non-residential and engineering for 2015 compounding the economic pressures. Whilst these reductions have in part kept a competitive tender market at all levels of tendering, the addition of 2015 numbers have equated to a 10% decrease to construction work done since 2010.

Tender prices are predicted to increase by 2.0% over 2016.

AuCKLANDDespite a weak dairy sector the New Zealand economy has a positive outlook with a strong Tourism sector which has overtaken dairy as our top export earner. Population growth, construction and tourism will be the key supports to economic growth in the next few years. Auckland is the largest recipient of tourism income and with strong population growth is feeding a buoyant construction market. Low inflation has seen the Reserve Bank cut the official cash rate to 2.5% and commentators predict it will remain at a similar level through 2017.

Net migration and population growth is generating strong demand for high density residential projects and associated infrastructure and is a major contributor to Auckland construction activity. An ageing population is also supporting a lift in retirement village developments. There are also a number of significant other non-residential developments set to start construction this year. These include the International Convention Centre, The Precinct Downtown Development, the Inner City Rail Loop, Paremoremo Prison, andthenewParkHyattHotel.

Demand is driving a volatile Auckland construction market with strained labour and supply chains. Material prices are generally steady however labour shortages are driving increased costs and margins are reflecting the volume of work. Several contractors are currently in the position of being selective on the contracts they want to win. It is becoming more important that tender documents are fully complete and that programmes allow sufficient time for tendering and construction in order to make projects attractive to price.

Concrete work, reinforcing steel and some services trades in particular are experiencing high demand resulting in higher prices. Construction cost escalation must be considered as a key element of project feasibility models. Tender prices are forecast to increase 6.66% during 2016.

48

BrisbaneConvention&ExhibitionCentre,Brisbane,Australia

Client: South Bank Corporation / RCP

Architect: Cox Rayner


49


BRIsBANEThe residential construction industry inQueenslandremainsinpositivegrowth territory with an increase of 27% in residential construction work done for 2015. Both non-residential and engineering decreased at 19% and 32% respectively. Overall, the total construction work done for 2015 fell 19%. The decrease is driven by engineering which is to be expected as commodity prices remain low and the mining industry deals with closures during restrained financial times and falls in related infrastructure including in Electricity and pipelines, Bridges, railways and harbours.

There are forecasts coming to market that increases in the hotel, aged care and education are likely as the industry looks past the current residential pipeline. The Building approval numbers however, to December 2015 showed no increase in these sectors. Forecasting increases we would see increases in retail and wholesale based on approvals to the end of 2015.

With the dollar having moved lower industries such as construction, tourism, education and agriculture will looked upon to move beyond the mining boom. Certainly the lower dollar will make international visitors consider Australia as their next destination. Additionally, the recently revised Australia-China Air Services agreement will increase the total allowable capacity of Chinese passengers to Australian gateway cities by approximately 50% by October 2016.

Lower interest rates should help improve consumer sentiment. This willhelpoffset“Whilewagegrowthis expected to remain weak in the near future, it is one of the main drivers of the forecast of a steady unemployment rate of 6%, as it has made workers a more competitive optionforemployers,”

The Tender Price Index is forecast to increase during 2016 at 7.86%.

CANBERRAGuarded optimism is the take out from the Deloitte Access economics report on the ACT’s Economy. As confidence grows there are still concerns of the economy’s reliance on the Federal Government. The uncertainty over tax reforms relating to property remains high. 2015 saw a 31% rise in the total value of building from 2014 in the ACT, an encouraging start to 2016.

The Universities in Canberra are leading the charge with two 500 bed student accommodation projects starting construction and another 800 bed project in planning stage due to start construction at the end of the year. The 140 bed University ofCanberraHospitalcontracthas been awarded to Brookfield Multiplex and has commenced on site. Other planned works include an Aged Care Facility and other campus masterplan developments. Another major announcement for 2016 was the awarding of the Capital Metro Light Rail Project to Canberra Metro a consortium including Pacific Partnerships,CPBContractors,JohnHolland,MitsubishiCorporation,Aberdeen Infrastructure Investments, Deutsche Bahn International and CAF for AU$698 million.

With confidence recovering and a number of major projects in the market our forecast is a rise in the tender price index for 2015 of 2.25%.

50

254MontrealStreet,Christchurch,NewZealand

Client: Canterbury Property Investments

Architect: Warren and Mahoney


51


ChRIsTChuRChCanterbury construction levels have been at record highs for several years now and while there is undeniably a great deal more work to be carried out over a number of years, the peak in terms of value of construction work at any one time appears to be near. Recently the first tranche of public service employees moved into their new CBD premises to join a number of newly completed commercial offices. This gradual repopulation of the CBD will now continue with a number of developments due for completion in the next 18 months. Less residential work is planned now that the peak of the residential rebuild has passed. The tangible result of this levelling off was a drop from 500 residential consents in December2015to350intheJanuary2016 period.

TheChristchurchHospitalsrebuildcontinues to gain momentum with Burwood due for completion in the 2ndQuarteroftheyearwhiletheChristchurchHospitalAcuteServicesBuilding has completed foundations and the substantial steel frame will soon begin to rise on the skyline. The University of Canterbury continues to progress as a major building programme and Lincoln University is in design stages for major rebuild projects.

TheJusticePrecinctprojectistaking shape in the CBD and the ChristchurchTownHallrepairand refurbishment project is well underway with the foundation repairs. Christchurch Council and Lyttelton Port are two more institutions with major ongoing building projects at various stages. Christchurch Council recently successfully concluded their insurance negotiations with an agreed settlement which now gives certainty in going forward with regard to funding availability.

Two major projects that are keenly awaited are the Metro Sports development and the planned Christchurch Convention Centre. Recently Metro Sports issued an RFP for potential contractors. In addition there are a number of smaller commercial projects underway throughout the CBD and wider city.

Supply and demand continue as the key market factors in Canterbury with the rescheduling and deferral of a number of projects and the likely rebuild period continuing for longer than originally expected. Peak in demand has arrived at a slightly lower level than anticipated. This has had a knock on effect in slightly reducing expected construction cost escalation levels over the next period. In addition to a flattening in the demand, the supply chain has responded in many areas. There are still specialist areas which are susceptible to extraordinary demand driven escalation on a project by project basis. A further area that has led to construction cost escalation is that of the New Zealand dollar exchange rate volatility. The last 12 months has seen a 10c drop against the US dollar. Given the high quantity of imported goods into New Zealand, this remains a key escalation risk on projects going forward.

Tender prices continue to show prosperous construction conditions in Christchurch as the indexed prices increases by 6.0% over 2015 and are projected to increase an additional 4.0% over 2016.


52


DARwINDeveloping the North remains a key focus for the NT economy noting a State election due this year. A number of projects have been tendered and awarded recently with the Government looking to release a few more projects. Noting that, with the exception of a few major projects, the industry is struggling with very low amount of projects coming on line. The general outlook for the industry is very conservative with little private investment in most industry sectors.

Key projects include an AU$35 billion LNG Gas plant, Regional HospitalAU$160million,shoppingcentres AU$120 million, Defence works AU$600 million. Infrastructure projects such as roads and housing subdivisions are continuing. Residential housing is still strong while multi storey medium to high density residential is faring badly with existing projects coming to completion and very few projects to follow. The retail sector is active with a number of shopping centres in construction, hospitality sector has been buoyant with a couple of projects finishing, Defence projects are currently starting to come through, industrial and light commercial sector is active whereas the office sector is dormant with the recent completion of a major office project in the CBD.

The construction industry is currently in a trough phase with very little appetite for private investment. Notwithstanding a few projects by the Government are providing some stimulus to the industry. The dominant project is the LNG project which relies heavily on FIFO workers thereby not generating the level of investment that was expected which has led to low level of optimism in the market.

We are however buoyed by Defence which is looming large as a major investor in the industry. We forecast low levels of tender price index increases in the foreseeable future with a number of contractors vying for the few projects on offer.

Darwin has experienced no overall movement in the crane index with adding and removing one crane within the residential sector.

Tender prices are set to increase by 1.0% in 2015 and forecasted to increase 1.5% in 2016.


53


GOLD COAsTThe ongoing success of the Light Rail as well as the low value of the Australian dollar and continued interest by foreign investors and developers has seen uplift in offshore investment on the Gold Coast in both development sites and apartments. The rising residential selling prices have resulted in renewed interest in residential development sites. The fringe areas of the Gold Coast and Surfers Paradise currently remain the strongest markets.

Itisthesheersizeofthenewdevelopments in the pipeline that has taken the Gold Coast by surprise, with more than six developments in excess of AU$1 billion currently being considered. The recent commencement of the AU$1 billion JewelProjectatSurfersParadise;theIlukaredevelopment;theAU$400million;and2018CommonwealthGames Village at Parklands together with the continued construction of the AU$500 million redevelopment of Pacific Fair Shopping Centre, continues to drive the market. Works are due to commence on the Gold Coast Airport ' Project Lift' with intended completion of the main body of works prior to the Commonwealth Games in 2018.

With the increase in construction activity, we are continuing to see an increase in the costs of a number of trades including formwork, tiling and plasterboard partitions and ceilings. We are also seeing the ongoing influence of the lower Australian dollar on the cost of imported materials and equipment with trades such as lifts, mechanical, aluminium windows and doors and white goods. With the impending completion of some major retail developments, the Gold Coast is currently experiencing a shortage of specialised shop fit-out contractors. These items could put added pressure on tender price increases, at least in the short term, while the industry is busy.

The tender price index is set to increase 4.0% over 2015 and increase an additional 6.0% over 2016.


54


MELBOuRNEThe outlook for Melbourne is favourable with sentiments in a number of sectors receiving a boost from government funding. Melbourne’s growth has risen to 2.5% annually in 2015, with 3% growth forecast for 2016-17.

Population growth is driving an increase of government investment in infrastructure, with Government infrastructure investment estimated to increase from AU$4.6 billion in 2014-2015 to AU$7.5 billion in 2016-2017 focusing on schools, hospitals, the rail network and roads. Population growth was 1.7% over 2015, making Victoria the fastest growing state in the nation.

Despite population growth the state’s unemployment rate has fallen from 6.9% in 2014 to 5.7% in March 2016, and is projected to be 5.5% by 2018-19. The increase in population appears to be meeting demand as the unemployment rate declines. A 2.0% employment growth is forecast for 2015-16.

The latest budget includes more than AU$7 billion to upgrade roads includingtheduplicationofYanYeanand Thompson’s roads, the Drysdale Bypass,streamliningHoddleStreet,the Western Distributor, Monash Freeway upgrade and other road safety initiatives.

Major projects such as Melbourne’s new Metro Tunnel and the Western Distributor which are fully funded and ready to proceed after the state government announced they intend to fund these projects without assistance from the federal government due to current needs within the state.

The Metro rail network is budgeted to see extensions to the South Morang line, upgrades to the Hurstbridgelineandtheremovalof 50 of our most dangerous level crossings. The regional rail network is set to see upgrades and frequency improvements to lines servicing Ballarat, Bendigo, Geelong, Gippsland, the North East, Shepparton and Warrnambool.

Residential construction is continuing as the strongest performer within the construction industry however recently there has been an increase in enquiries pertaining to both the retail and hotel sectors.

As the Melbourne construction market continues to remain positively stable escalation rates finished last year at 1.5% and are forecast to be 2.0% for 2016. Tendering is described as aggressive while contractors are trying to secure work and only facades have seen slight increases recently while other building costs remain relatively stable.

PERThThe close link between commodity pricing and the Western Australian economy continues to affect business confidence and investment. Although committed construction project are proceeding, there is a clear reluctance in the commercial sector to commit to new capital investment.

The State Government is proceeding with the Forrestfield Link, a new train line that will connect the city with Perth Airport and a new terminus at the eastern suburb of Forrestfield. Total project budget is approximately AU$2 billion. The contract for design and construction has been awarded to a joint venture led by the Italian industrial group, Salini Impreglio. The first trains are expected to commence running in 2020.

Three companies have been selected to prepare detailed proposals for Stage 2 of NorthLink, a freeway betweenReidHighwayandEllenbrook, providing extra road capacity to Perth's north-east. Total project budget is approximately 1.12 billion and is expected to be completed in 2019.

Despite approximately five years without any measurable price increases, the current depressed work volumes have continued to keep price levels flat across most sectors. As the higher work volumes experienced in the civil sector wind down (and are virtually eliminated in the north western parts of the State), we anticipate further compression of pricing in this sector.

The tender price index is set to increase 0.75% over 2015 and increase an additional 2.0% over 2016.


55


syDNEyTheQ12016continuedtopresentstrong fundamentals for current and future activity in the Sydney Construction market.

Reports from the Australian Bureau of Statistics suggest strong building activity. The increase in the value of work completed increased by 3%inQ12016.Inresponsetostrong activity, contractors are now reporting that some trades on commercial and institution type projects are experiencing resource issues as trades are electing to work on residential projects due to increased margins, perceived aversion to reduced risk and the likely occurrence of a continuous work flow from project to project.

TheRLBcraneindexforQ12016continued to report the majority of cranes being erected on residential projects and these projects are throughout the Sydney metropolitan suburbs. It is apparent the building approvals recorded in the late half of 2015 are now being seen in increased number of cranes being erected for new projects in the early months of 2016.

Material prices continued to be stablethroughouttheQ42015andQ12016despitethestrongdemandforconstructionmaterials.HoweverpricerisesareexpectedintheQ22016 particularly in the concrete and masonry trades.

Despite stable material prices tender pricing continues to experience a large range of prices received. The range of tender prices received is dependent upon contract delivery system, risk allocation and the need to secure new work to maintain workforce and cash flow.

The reported fall in the non-residential sector approvals indicates that a large range of tender price ranges will continue to be experienced as contractors to maintain workload in a diminishing marketsector.Howeverindustryforecasts suggest that future opportunities will be at the levels experienced in late 2014 and early 2015.

The duration of 2016 will present new challenges. Demand for new dwellings is likely to continue however discussion concerning the availability of finance, change of taxation laws and reduced migration intake may impact demand and delay commencement of new projects. However,costswillcontinuetorisedue to wages growth and margin expectations. Non-residential will continue to offer opportunities in commercial, aged care, health and government infrastructure projects however these projects will be sought after and contractors who accept an element of risks are more likely to secure new work to replace projects nearing completion.

Tender prices continue to show prosperous construction conditions in Sydney as the indexed prices are projected to increase an additional 4.8% over 2016.

56

OneMarketLane,Wellington,NewZealand

Client: Willis Bond & Co Ltd

Architect: Studio of Pacific Architecture Ltd


57


OneMarketLane,Wellington,NewZealand

wELLINGTONConstruction in the Wellington region continues to improve with a number ofgoodsizeprojectscurrentlyunderway. Three additional tower cranes have been erected over the past couple of months and further large projects remain in design stage. Activity across all sectors remains strong and very positive for the next few years.

Strengthening of existing buildings still remains as a key construction component in our region, and this is also driving much needed fitout upgrade works at the same time. The Lower North Island regional centres are showing signs of increased construction activity with the positive economic signals in the main centres filtering through. We expect this to continue for some time.

Wellington has a good variety of current projects now under construction, including some major office refurbishments in various stages, with the majority to finish this year. New commercial office buildings have started, along with some mixed use developments and further public space work on the Waterfront and throughout the city. Public and private multi-unit apartment construction are also underway with new developments in the pre-sale and detailed design phases at present. Fitout work is also continuing which is providing good ongoing work for the subcontractor market in Wellington. Transmission Gully and other major civil road works on the Kapiti Coast are progressing well and property demand is being felt already in the northern reaches of our region.

Cost escalation in our region is finally starting to show its teeth, after being very flat since 2008. We remain at low levels compared with other centres around New Zealand but given the likely future activity t is likely that we will see increasing escalation over the next few years. Material selection for projects is becoming critical with some product groups being priced out of the market at present, namely Precast Concrete, Metal Windows and Steelwork.


5858

independenT ConsulTanTs, loCal KnoWledGeAND ExpERTISE, GLOBAL NETWORK

The strength of Rider Levett Bucknall, the largest independent and most geographically prevalent construction cost consultancy of its kind in the world, is that it has the foremost construction intelligence available to it. We collect and collate current construction data and forecast trends on a global, regional, country, city and sector basis. Rider Levett Bucknall publish key industry intelligence publications throughout each year. For more detailed sector and city/country information than is published within the International Report please review our regional or country specific publications.

A listing of our publications and proposed publishing date are:

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 July 2016.

REGIONAL RELEAsE

Oceania Report Apr, Oct

European Report Apr

Americas – Caribbean Nov

Gulf States TBA

HongKong&ChinaReport Mar,Jun,Sep,Dec

COuNTRy sPECIFIC

UK Index Quarterly

Singapore Mar,Jun,Sep,Dec

China Apr, Oct

USA Mar,Jun,Sep,Dec

New Zealand Apr,Jul,Oct,Dec

sECTOR sPECIFIC RELEAsE

EMEAHotelsMonitor Mar, Sep

LatinAmerica&CaribbeanHotelsMonitor May, Oct

RIDERs DIGEsTs

Riders Digest – USA Q1

Riders Digest – Singapore Q1

Riders Digests – Australian States Q1

Riders Digest – UK Q1

Riders Digest – Philippines Q1

sOuRCEs OF INFORMATION – INTERNATIONAL REPORTInformation contained within this report has been compiled from numerous global sources and RLB offices. Certain text and data contained within the report has been compiled from information published by the following organisations.

International Monetary Fund – Regional Economic Outlooks imf.org

World Bank worldbank.org

Asian Development Bank adb.org

ANZ Bank research anz.com

Global Construction Perspectives and Oxford Economics globalconstruction2025.com

The Economist economist.com

Reserve Bank of Australia rba.gov.au

Royal Institution of Chartered Surveyors vics.org

Colliers International colliers.com

Further information can be found on their websites.

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All publications are available from rlb.com or for a hard copy please contact your local office.


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