OCEANIA REPORT CONSTRUCTION MARKET INTELLIGENCE. SECOND Quarter 2015

Transcription

1 OCEANIA REPORT CONSTRUCTION MARKET INTELLIGENCE SECOND Quarter 215

2 Independent consultants local knowledge and expertise global network RIDER LEVETT BUCKNALL Rider Levett Bucknall (RLB) is an independent property consultant, providing advice focused on the cost, quality and sustainability of the built environment. It has over 3,5 staff operating from more than 12 global offices. The firm s philosophy is to combine global best practice with local know-how, utilising the latest cost data and innovations to deliver full property solutions for clients across a number of sectors. The strength of RLB, 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. RLB publish key industry intelligence publications throughout each year. For more detailed sector and city/country information than is published within the Oceania Report please review our regional or country specific publications. All publications are available from rlb.com or for a hard copy please contact your local office. THE OCEANIA REPORT The RLB Oceania Report is published twice-yearly and provides detailed regional and local construction market intelligence and data compiled from our network of offices. Construction Market Intelligence The Oceania Report is supplemented by RLB's a biannual International Report, quarterly NZ Forecast and annual Riders Digests published within the Oceania Region. Cover: Sustainable Industries Education Centre, South Australia 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 May 215. National statistics are derived from the Australian Bureau of Statistics (ABS) and Statistics New Zealand. RLB promotes a sustainable environment. Printed by PrintLinx using the Ecoclean Chemical Recycling Process on Maine Recycled. This stock consists of 6% certified recycled (PCW) and 4% certified virgin fibre sourced from responsibly managed forests. Certified carbon neutral by The Carbon Neutral Company, Maine Recycled is manufactured process chlorine free and produced in a facility that operates under world's best practice ISO 141 Environment Management System.

3 Oceania REPORT The Oceania Report, covering Australia and New Zealand, provides a half-yearly snapshot of construction market conditions and price movements in Australia and New Zealand, via commentaries and analysis from RLB directors in each location. A broad overview of construction market intelligence in Australia is provided on page 4, followed on pages 11-2 by commentaries from RLB directors in eight key locations across the country. An introduction to construction market intelligence in New Zealand is included on page 21, with detailed commentary for each of three principal New Zealand markets on pages Tender price trends and tender price relativity analysis are provided on pages 6 and 7. Tender price annual movements are shown in the market data table, shown on page 7, which tracks tender price movement since 28 and forecasted out to the end of 218. RLB's construction market activity cycle model, on page 9, shows our view of levels of activity in each of seven sectors of the construction industry, in terms of relative levels of activity within an economic cycle. These views are analysed numerically in the charts shown on page 8. Both the Australian and New Zealand Q2 215 RLB Crane Index have been included on pages 26 to 45. The Crane Index is published twice a year and provides an indication as to the current strength of the construction industry within key Oceania locations. Building Cost Ranges and International Construction Cost Relativities are available in the RLB Intelligence Smartphone App and via the RLB Desktop WebApp. Further information can be found at rlbintelligence.com To download our free App, visit rlb.com/app or scan the QR code. Rider Levett Bucknall Oceania Report Second Quarter 215 3

4 CONSTRUCTION MARKET INTELLIGENCE AUSTRALIA Source: ABS Original CVM Source: ABS Original CVM CONSTRUCTION WORK DONE 214 QUARTERS ($ BILLIONS) NSW VIC QLD SA WA NT ACT MAR 214 JUN 214 SEP 214 BUILDING WORK DONE 214 QUARTERS ($ BILLIONS) DEC 214 NSW VIC QLD SA WA NT ACT MAR 214 ENGINEERING WORK DONE 214 QUARTERS ($ BILLIONS) NSW VIC QLD SA WA NT ACT MAR 214 JUN 214 JUN 214 SEP 214 SEP 214 DEC 214 DEC 214 The Australian economy is continuing its reputation for stability, being in its 25th consecutive year of growth and is forecast to strengthen further over the next few years. This is the second longest continuous period of growth of any advanced economy in the world. Key exchange rates, oil and electricity prices that are lower than two years ago together with the macroeconomic policy settings are all working together to underpin stronger growth. Residential investment continues to grow strongly and household consumption grew at its fastest rate in almost three years in the December quarter 214. Exports are also expanding rapidly as resource production ramps up and the lower exchange rate supports services sectors, such as tourism. Real GDP is expected to grow by 2.75% in 215/16. Stronger non mining business investment is expected to drive an increase in growth to 3.25% in 216/17. The labour market has proven more resilient than expected in recent months. Employment growth has picked up, supported by wage restraint across the economy. This has led to a downward revision to the forecast for the unemployment rate for the June quarter 215 to 6.25%. This is in the face of an improvement in the participation rate which is now expected to be 6% in the June quarter 215. Going forward, the unemployment rate is expected to edge a little higher in 215/16 before falling in 216/17. The participation rate is forecast to be slightly higher than it was in the 214/15 Budget as improved job prospects encourage additional people back into the workforce. Strong growth in the Residential sector is assisting in the strength of the construction sector. Residential approvals have risen $12 billion over the past two years around the country. This is also seen in the flow on effect into work done across the Australia. Calendar Year ($ Billions) Residential building Work Done Non-Residential building Work Done Source: ABS The past two years has seen an average of 4.% increase in work done over 212 levels, this increase represents $6.7 billion of additional work throughout the industry. With the volume of approvals increasing during 214, the likelihood of a stable pipeline of work is strong. Source: ABS Original 4 Rider Levett Bucknall Oceania Report Second Quarter 215

5 AUSTRALIA - ANNUAL VALUE OF BUILDING APPROVALS ($ BILLIONS) TOTAL NEW RESIDENTIAL RETAIL AND WHOLESALE OFFICES INDUSTRIAL EDUCATION HEALTH TRENDLINE (RESIDENTIAL) The transition from engineering based work to building work is underway with engineering work done appearing to have peaked. A drop of $16 billion engineering work done from 212 levels was seen in 214, this fall has been offset by an additional $6.4 billion performed within the residential sector. The engineering sector is still showing considerable growth over the previous 15 years with 214 work done, up some 3% on 2 levels. For the construction industry as a whole, this realignment has resulted in positive growth in the residential sector and a stabilisation of the non-residential sector after the peaks in education, health and office spending in 29/1. Since 2, the engineering sector has averaged $7.6 billion of construction work (high of $132.8 billion, low of $27.9 billion) with the building sector averaging $76.2 billion (high of $92. billion, low of $53.3). Source: ABS Source: ABS AUSTRALIA BUILDING APPROVALS ($ BILLIONS) HOUSES APARTMENTS RETAIL & WHOLESALE OFFICES INDUSTRIAL EDUCATION HEALTH AUSTRALIA CONSTRUCTION WORK DONE ($ BILLIONS) Building work done (CVM) Engineering work done (CVM) Total construction work done Source : ABS The strength of the overall market is reflected in the stable Tender Price Index uplifts seen across the country. Even with the fluctuations in volumes of work being undertaken within the many sectors encompassing the Building and Construction industry, stable pricing is being seen in most markets. Most key cities are seeing construction prices reflecting CPI type increases due to a rationalisation of head contractors around the country, strength of the residential market which is very price sensitive and a movement of workers and sub-contractors from mining work to residential and commercial projects. Director Stephen Ballesty RESIDENTIAL NON-RESIDENTIAL ENGINEERING Source: ABS CVM Original Rider Levett Bucknall Oceania Report Second Quarter 215 5

6 Tender Price Index for Australia / NEW ZEALAND The Tender Price Index graphs show the changing costs of works over time, relative to Sydney s base 1 at January 2, and is based upon RLB's models of CBD/CBD fringe commercial office and residential multi-storey construction. AUSTRALIA INDEX (SYDNEY JAN 2 = 1) ADELAIDE BRISBANE CANBERRA DARWIN MELBOURNE PERTH SYDNEY FORECAST TOWNSVILLE 11 JAN 28 JAN 29 JAN 21 JAN 211 JAN 212 JAN 213 JAN 214 JAN 215 JAN 216 JAN 217 JAN 218 NEW ZEALAND AUCKLAND CHRISTCHURCH SYDNEY WELLINGTON INDEX (SYDNEY JAN 2 = 1) FORECAST 1 JAN 28 JAN 29 JAN 21 JAN 211 JAN 212 JAN 213 JAN 214 JAN 215 JAN 216 JAN 217 JAN Rider Levett Bucknall Oceania Report Second Quarter 215

7 TENDER Price Trends for Australia/ NEW ZEALAND MARKET DATA RLB TENDER PRICE INDEX SERIES (% CHANGE) Q2 215 Relativity CITY (F) 216 (F) 217 (F) 218 (F) Q2 215 ADELAIDE AUCKLAND BRISBANE CANBERRA CHRISTCHURCH DARWIN MELBOURNE PERTH SYDNEY TOWNSVILLE WELLINGTON (F) FORECAST Tender Price Relativity Matrix Q2 215 Adelaide 1 Brisbane 1 Canberra 1 Darwin 1 Melbourne 1 Perth 1 Sydney 1 townsville 1 Bne 9 Ade 112 Ade 95 Ade 87 Ade 97 Ade 94 Ade 91 Ade 14 Can 15 Can 118 Bne 85 Bne 78 Bne 87 Bne 84 Bne 81 Bne 93 Dar 114 Dar 128 Dar 18 Can 92 Can 13 Can 99 Can 96 Can 11 Mel 13 Mel 115 Mel 98 Mel 9 Dar 111 Dar 17 Dar 14 Dar 119 Per 16 Per 119 Per 11 Per 93 Per 13 Mel 97 Mel 94 Mel 17 Syd 11 Syd 123 Syd 14 Syd 96 Syd 17 Syd 13 Per 97 Per 111 TVL 96 TVL 17 TVL 91 TVL 84 TVL 94 TVL 9 TVL 88 SYD 114 Source: RLB Tender Price Relativity Matrix Q2 215 Auckland 1 Source: RLB Christchurch 1 Sydney 1 Wellington 1 Chc 112 Auck 9 Auck 83 Auck 93 Syd 121 Syd 18 Chc 92 Chc 14 Well 17 Well 96 Well 89 Syd 113 Rider Levett Bucknall Oceania Report Second Quarter 215 7

8 Market Sector Movement OCEANIA Market Sector Movement - All Regions Number of Total Ups and Downs Market Sector Movement - All Regions NUMBER OF INSTANCES NUMBER OF INSTANCES RED UP GREEN UP BLUE UP RED DN GREEN DN BLUE DN TROUGH ZONE MID ZONE PEAK ZONE TROUGH ZONE MID ZONE PEAK ZONE The charts above shows the aggregate numbers of responses from Rider Levett Bucknall Oceania offices, in each of the three categories, Trough, Mid and Peak Zones Number of responses Market Sector Movement - All Regions 1% 9% % 7% % 5% 4% % 2% 1% % HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIVIL TROUGH ZONE MID ZONE PEAK ZONE The chart above shows the aggregate numbers of responses from RLB's offices, in each of the three categories, Trough, Mid and Peak Zones, shown as percentages for each of the construction sectors. 8 Rider Levett Bucknall Oceania Report Second Quarter 215

9 CONSTRUCTION MARKET ACTIVITY CYCLE MODEL PEAK GROWTH ZONE PEAK ZONE PEAK DECLINE ZONE MID GROWTH ZONE MID ZONE MID DECLINE ZONE TROUGH GROWTH ZONE TROUGH ZONE TROUGH DECLINE ZONE The RLB Construction Market Activity Cycle wave graph represents the theoretical boom / bust business cycle of the construction economy. The market activity arrows highlight the current point in the construction activity cycle of the major sectors within each RLB office. Houses Apartments Offices Industrial Retail Hotel Civil Adelaide Auckland Brisbane Canberra Christchurch Darwin Gold Coast Melbourne Perth Sydney Townsville N/A Wellington Rider Levett Bucknall Oceania Report Second Quarter 215 9

10 The Adelaide Oval Redevelopment, Adelaide

11 Location Intelligence AUSTRALIA Adelaide The business outlook for Adelaide is still maintaining the challenging themes of recent years. These key structural themes include positive employment and economic growth. Both these indicators have been disappointing over the past twelve months. The South Australian economy grew at just 1.3% in 213/14, following growth of.9% in 212/13. Employment has softened with 6.7% unemployment registered in the Q Confidence has been lacking in the South Australian economy. The closure of car manufacturing and the possibility that the Federal government will buy submarines from overseas rather than have them built locally in South Australia have been the latest blows. A pickup in activity will require a positive shift in the mood of consumers and businesses. of Adelaide Health Building also augers well for the job continuity for the trades and suppliers. The recent announcement of the cancellation of the major Courts Precinct Project was disappointing for the general construction industry. The new rounds of EBA negotiations have commenced and it is anticipated that not all of the anticipated wage rate increases will be passed on to tenders as the market remains competitive. All trade contractors continue to remain very competitive and are actively seeking new work. The market continues to be tough for trade contractor s particularly civil and structural trade contractors due to the lack of available work. There has been a slight price increase in the supply of cost for materials where the materials have been imported from overseas mainly affecting mechanical plant items, foreign lighting etc. However, the supply cost of reinforcement has come down in recent months reflecting the drop in the cost of salvaged / recycled steelwork. We are anticipating a slight easing of escalation forecasted on our last report. We are anticipating increases of 2.% and 3.% during 215 and 216 respectively. Director Peter Tulla House prices in Adelaide have grown modestly, although the pace of growth has lagged behind growth in other capital cities including Sydney and Melbourne. Further modest gains in house prices as the extended period of low interest rates should continue to support demand from both owner occupiers and investors. There are still positives for the State, including a now weaker Australian dollar. Its decline will help support manufacturing, agriculture, tourism and education, which are key sectors of South Australia s economy. Low interest rates will also continue to support housing and consumption in the State. Over the past two years, building work done has increased in 213 and 214 by 2.2% and 4.4% respectively. The quantity of residential approvals increased during 214 to levels seen in 21 and 211. Strong numbers are being seen in houses and apartments. This gives confidence to the sector for forward work. The commencement of The University HOUSES APARTMENTS RETAIL & WHOLESALE Source: ABS SA BUILDING APPROVALS ($ BILLIONS) OFFICES INDUSTRIAL EDUCATION HEALTH SA CONSTRUCTION WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL ENGINEERING Source: ABS CVM Original Rider Levett Bucknall Oceania Report Second Quarter

12 Gold Coast University Hospital, Queensland

13 Location Intelligence AUSTRALIA Brisbane The Queensland economy is now entering a period of transition, as the investment phase of the large liquefied natural gas (LNG) projects starts to wind down and the production and export phase begins. Queensland is expected to continue to outstrip national growth over the years ahead, especially when growth will be boosted by the ramp-up in LNG exports. Business investment is strengthening and likely to continue which should see an increase in demand for construction and in turn continue to assist in growth for the economy. As forecast in our Q4 214 Oceania report Brisbane is currently experiencing growth in residential construction. Forecast on the basis of the residential building approvals being at their highest level since 28, Brisbane is following behind Sydney and Melbourne and being driven mostly by investors. Building construction volumes are at a four year high driven by private sector residential construction which has increased 18% over the year ending 31 March 215 compared to the corresponding period the previous year. Non-residential construction slipped 2% for the year ending 31 March 215 compared to the previous year due to fall in Government spending offsetting a 1% increase in private sector nonresidential activity. Growth is likely continue in the residential sector on the current approval numbers. The engineering sector has come from the record year in 213 of $43 billion work done in the period to 31 December 213 with a 15% reduction to $37 billion in 214. This is still the third highest annual level of expenditure but reflects the end of the investment phase in the resource sector. Exports from the LNG facilities will provide a much needed boost to the Queensland Government revenue as the operation phase of the investment in resources ramps up. Significant new developments have been started, announced and proposed projects give further confidence the construction sector will continue to grow over the next twelve months. The long-awaited decision regarding the Queens Wharf Precinct is expected in July 215 that will precipitate commencement of $2 billion to $3 billion of investment in the redevelopment of large area of the government precinct into a new integrated Casino, hotel, residential, retail and entertainment facilities. Major projects that have commenced or are expected to commence in the next period include 3 George Street, FV Project in Fortitude Valley, Cooperoo Square and Skytower. On the Gold Coast work has commenced on the Jewel project with work on the expansion of Jupiters Casino expected to commence in the near future HOUSES APARTMENTS RETAIL & WHOLESALE Source: ABS In the non-residential sectors retail continues to experience reasonable levels of activity including major projects at Pacific Fair and Broadway on the Mall. The industrial sector also continues to perform strongly. The small resource pool in Queensland and the limited number of sub-contractors that can undertake major projects results in a high level of pricing volatility. The increase in residential construction activity has seen an increase in the cost of a number trades that have a heavy involvement with residential construction. Trades that have been particularly affected include formwork, tiling and mechanical services. Material prices have remained relatively stable in the past six months and escalation is forecast to be around 6% due to high levels of building approvals and a strengthening economy. Director Paul Megram QLD BUILDING APPROVALS ($ BILLIONS) OFFICES INDUSTRIAL EDUCATION HEALTH QLD CONSTRUCTION WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL ENGINEERING Source: ABS CVM Original Rider Levett Bucknall Oceania Report Second Quarter

14 Location Intelligence AUSTRALIA Canberra Local market activity within the ACT remain subdued. The cuts to the federal public sectors appear to have stabilised over 214, but building approvals were down on a year on year basis, highlighting the excess capacity within Canberra at the moment. This demonstrates the counter-cyclical nature of the Canberra market with the latest ABS data confirming the continued strength of the property and construction industry nationally. The increasing levels of office vacancy, which has risen to 15.4% the second highest office vacancy rate nationally, is causing concern for both landlords and developers alike. Over 9% of the homeowners effected by the Mr Fluffy asbestos abatement program have signed up for the ACT Government mass buy back scheme for homes affected by loose asbestos insulation which has affected approximately 1, homes. Remediation works and site redevelopment will assist activity levels in the sluggish housing market. Longer term planning continues with the ACT Government's announcement of the two shortlisted consortia who will proceed to the next stage of the City Metro project. The $78 million light rail corridor from Gungahlin to the City and enabling works for the City to Lake are being progressed. The University of Canberra hospital planning phase continues with construction of the 14 bed facility expected to start in early 216 and the CSIRO consolidation project ramping up the construction phase which will provide a much needed boost to local trades. IKEA is expected to open the doors on their first Canberra store towards the end of this year. 6 As the construction industry settles into its 215 rhythm, the recovery in market confidence is slower than expected and we have revised our forecast to a rise in the tender price index in line with inflation for 215 of 2.%, rising to 2.2% for 216. Director Fiona Doherty ACT BUILDING APPROVALS ($ MILLIONS) HOUSES APARTMENTS RETAIL & WHOLESALE OFFICES INDUSTRIAL EDUCATION HEALTH Source: ABS 8731 ACT CONSTRUCTION WORK DONE ($ BILLIONS) Source: ABS CVM Original RESIDENTIAL NON-RESIDENTIAL ENGINEERING 14 Rider Levett Bucknall Oceania Report Second Quarter 215

15 Location Intelligence AUSTRALIA Darwin The Northern Territory has experienced the largest growth nationally in Gross State Product (GSP) with 6.5% for FY 213/14 (4.2% above the 1 year average) and was one of only two states in Australia above the national GDP rate of 2.5%. The INPEX gas project continues to be the primary focus of construction and engineering activity in the Top End in 215. The construction market is otherwise flat with only a handful of medium/high density apartment projects under construction. Housing development is strong as is industrial development especially those associated with the oil, gas, transport and logistics sectors. Retail and hospitality are picking up with a number of projects remaining in the planning and feasibility phases. Developing key infrastructure projects remains the key regional focus with roads, marine and gas infrastructure projects leading the way. A number of such projects are underway with others in planning. The release of new land is a key economic focus for the NT Government. With new land being released, the ability to commence both housing and industrial projects should increase the economic base on the back of the key infrastructure projects underway within the NT, This will provide affordable housing for residents benefitting from such projects and invariably lead to increased demand in other sectors such as educational, retail and health. The construction market still remains very competitive with a number of bidders vying for the few projects on offer. Projects underway are benefitting from adequate supply of reasonably priced labour. Demand for construction output remains low with slow take up rate leading to greater lead times between projects. The slow pace of such developments will ensure marginal price increases of 2.5% throughout 215. Director Paul Lassemillante Housing approvals are down to pre-21 levels, reflecting the new norm. The market is still strong with low interest rates, employment figures above the national average, strong migration and stable consumer confidence. 6 5 NT BUILDING APPROVALS ($ MILLIONS) HOUSES APARTMENTS RETAIL & WHOLESALE OFFICES INDUSTRIAL EDUCATION HEALTH Source: ABS 8731 NT CONSTRUCTION WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL ENGINEERING Source: ABS CVM Original Rider Levett Bucknall Oceania Report Second Quarter

16 Melbourne's GPO, Melbourne

17 Location Intelligence AUSTRALIA Melbourne Growth in the Victorian economy is showing positive trends. Gross State Product is forecast to rise from 1.7% in 213/14 to 2.5% in 215/16. This forecast from the 215/16 budget delivered by the new Government, has forecasted a budget surplus, infrastructure spending of $5.2 billion and net debt falling to 4.4% of GSP. The Victorian economy is widely regarded as being more sensitive to the exchange rate than the wider Australian economy due to the significant role of manufacturing, international education services, tourism and the dairy industry. The recent decline of the Australian dollar and low interest rates indicate that Victoria s economy will gradually improve. Additionally, strong population growth will be supportive of economic growth. Low interest rates, combined with high population growth, have increased demand in Victoria s residential property market. Strong price growth among established dwellings is encouraging further residential construction. Likewise, financial asset prices have grown solidly as investors seek higher returns in a low interest rate environment. The outlook for Victoria s economy over the medium term is positive, but varies across industries as structural changes continue to shape the economy s composition. Strong migration inflows are further contributing to the State s skilled workforce. Strong building approvals during 214 have seen gains in the Retail & Wholesale, Industrial and Residential sectors with small drop offs in the Offices, Health and Education sectors. Major projects underway in Victoria include: $5 million Chadstone Shopping Centre expansion, $1.8 billion Collins Square, $2 million Werribee Plaza, $6 million Bendigo Hospital, $1 billion Peter McCallum Comprehensive Cancer Centre and $5m Ravenhall Prison together with many significant residential towers Consistent volumes of Construction Work Done in Victoria over the past five years has kept demand on pricing keen. With annual work done volumes averaging around $36 billion, +/- $1 billion, the market forces have resulted in Tender prices being relative stable. We are predicting construction price increases of 2.% in both 215 and 216. Director Mark Lochran VIC BUILDING APPROVALS ($ BILLIONS) 2 HOUSES APARTMENTS RETAIL & WHOLESALE OFFICES INDUSTRIAL EDUCATION HEALTH Source: ABS VIC CONSTRUCTION WORK DONE YEAR ENDING JUNE 3 ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL ENGINEERING Source: ABS CVM Original Rider Levett Bucknall Oceania Report Second Quarter

18 Location Intelligence AUSTRALIA Perth Western Australia s economy continues to steer through the transition from a construction phase to production phase in the resources sector but, the downside of the transition is beginning to show in the domestic economy. 214 has proven to be a testing year for businesses across the state, as the economy began its transition. While exports remain at record highs giving confidence it has been significantly undermined by the falling commodity prices. The recent slowdown of population growth and rising unemployment are believed to have contributed to a slowdown in housing activity. With capital spending in the resources sector expected to fall further this year, new sources of growth will be needed to ensure the WA economy continues to expand during this transition. WA s economic growth is set to soften in 214/15 to 2.6% before picking up again in 215/16 to reach 4.4% Export volumes are forecast to rise by 6.4% in 214/15, followed by a further 7.6% rise in 215/16 and 1.6% in 216/17, reflecting higher production from the resources sector The decline in commodity prices has been reflected in the State Budget bottom line. With revenue from resource royalties drying up and a struggle to keep expenditure growth under control, total public sector net debt is estimated to be $25.4 billion in 214/15 rising to $3.9 billion in 217/18, according to State Treasury. Although there remains a reasonably significant amount of construction activity under way in the CBD, the construction industry is generally fairly flat with excess capacity in almost all sectors. Pricing is extremely competitive for builders and consultants. Office developments previously driven by demand for project space are now faced with growing vacancy rates, declining rents and ballooning incentives. The residential sector, both housing and apartments, remains the strongest area within the WA building economy and has shown greater resilience than previously anticipated with new projects still being initiated. There are a number of key development zones progressing at present: Kings Square - (site of the former Entertainment Centre) has been subdivided into six sites, predominantly office developments, and at present four new office towers are under construction with the remaining sites allocated for a either an office or hotel and residential developments, with extensive public open space Elizabeth Quays - the area immediately "inshore" from the Barrack Street jetty, is midway through a major redevelopment that will create numerous development sites and is anticipated to include: an office tower for Chevron, a mixed use hotel (Ritz Carlton) and residential development. Waterbank - adjacent to the Causeway link to Victoria Park, is currently undergoing major civil works in preparation for extensive development by Lend HOUSES APARTMENTS RETAIL & WHOLESALE Source: ABS 8731 WA BUILDING APPROVALS ($ BILLIONS) Lease for apartments, offices and other mixed use. Capital Square (formerly the Emu Brewery site) has commenced development of a podium with three towers, the first of which will be the new headquarters for Woodside Petroleum Construction prices have been relatively flat for four years and current prices are similar to those seen at Q3 26 after reaching a peak in Q1 28. It is generally considered that construction rates and prices must rise as the impact of wage increases and the weaker dollar is felt within the supply chain and cannot continue to be absorbed. At this stage, however, we anticipate a slow return of price escalation, held in check by the levels of work currently existing throughout the construction sector. We are anticipating increases of 2.8% for 215 and 3.% in 216. Director Alastair McMichael OFFICES INDUSTRIAL EDUCATION HEALTH Source: ABS CVM Original WA CONSTRUCTION WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL ENGINEERING 18 Rider Levett Bucknall Oceania Report Second Quarter 215

19 Location Intelligence AUSTRALIA Sydney Sydney continues to experience strong levels of construction activity in the residential sector. The activity in the residential sector is across all types of construction from alterations and additions to existing dwellings, new individual dwellings in both established suburbs and new subdivision and multi-unit dwelling across the Sydney metropolitan areas. Major non-residential projects are experiencing a high level of industrial relation unrest that has not been experienced in recent times. There are a number of Enterprise Bargaining Agreements that are due for renewal for which the CFMEU are seeking wages rise that will result in a 25% wage increase over three years. These increases are significantly above previous years wage increase agreements, these increases will have an impact on overall construction costs. The first quarter of 215 has seen supplier price increase in waste removals, concrete supply, doors, selected timber products, selected plumbing products, lifts and plasterboard. Prices for such materials have increased in the order of 4% to 8%. However, prices for plastic products such as membranes and PVC pipework has decreased by up to 1%, with a rise in oil prices this could easily be reversed. We consider the decrease is due to the falls in crude oil products that have occurred over the past six months. Recent tender results continue to meet expectations. In the short term we expect competitive market conditions to continue at similar levels that have been experienced in the past twelve months. Should a number of major commercial and residential proceed from planning stage to construction, it is likely prices will increase at a higher rate than anticipated six months ago. The confidence that exists in the residential sector is driven by population growth, a buoyant residential real estate market for existing property and demand for multi-unit type dwellings. Developers continue to report strong demand at pre sales stage of project developments. Australian Bureau of Statistics for Building Approvals for the number of residential dwelling approved for the last half of 214 is approximately 1% above for the similar period of 213. The increasing activity in the residential building approvals and resultant activity has raised speculation of an over building or a bubble situation. Though the industry has yet to observe the rapidly rising costs and labour shortages that would be normally be the first indicators of an overheated market and impending oversupply. A recent article by the Property Council of Australia has included commentary that the growth of the population is not exceeding the supply of residential dwelling. However, it should be noted that residential stock has not yet offset the lack of new dwellings being constructed in the 24 to 211 period. Whilst the residential sector has provided continuing and increased opportunities, the non-residential sector has not yet provided a HOUSES APARTMENTS RETAIL & WHOLESALE Source: ABS 8731 NSW BUILDING APPROVALS ($ BILLIONS) OFFICES INDUSTRIAL EDUCATION HEALTH NSW CONSTRUCTION WORK DONE YEAR ENDING JUNE 3 ($ BILLIONS) Source: ABS CVM Original consistent increase in both current workload and future workload. Australian Bureau of Statistics for nonresidential building approvals continue to report differences in the number of approval on month to month basis. However, a downward trend has emerged for approvals for the last half of 214 and into January 215. Commercial office building development the Barangaroo, George Street and Martin Place precincts have now achieved mid and high floor construction stages. This provides an atmosphere of high activity levels and major works within the Sydney CBD. Such projects are scheduled for completion late 215, early 216, to date future projects to replace existing developments are yet to progress beyond initial planning stages. However, it is highly likely that there will be a number of major residential CBD residential opportunities redeveloping current commercial buildings into significant residential developments. Director Matthew Harris RESIDENTIAL NON-RESIDENTIAL ENGINEERING Rider Levett Bucknall Oceania Report Second Quarter

20 Location Intelligence AUSTRALIA Townsville The local economy remains stable despite a slight decline in confidence being offset by employment figures showing a 2.3% increase and the population continuing to grow. The commitment from the government to the $2 million Building our Regions fund to deliver jobsgenerating infrastructure in regional areas is hoped to benefit the Townsville region. Building approvals are down across all residential construction with the exception of alterations. Townsville has had some recent announcements to boost construction in the area such as the 34 new social housing properties to be constructed over the coming twelve months at a value of $8.3 million. Consisting of one and two bedroom apartments across three locations at Railway Estate, Hermit Park and Aitkenvale. The final stage of the Townsville Ring Road in now under construction. The proposed $18 million power plant to be built on Palm Island and of course the new $85 million Berth 8 facility at the Port of Townsville is now open are all signs the pipeline of work within local economy is flowing well.. Director Chris Marais , , RESIDENTIAL BUILDING APPROVALS ($ MILLIONS) CALENDAR YEARS CAIRNS FITZROY MACKAY TOWNSVILLE NON-RESIDENTIAL BUILDING APPROVALS ($ MILLIONS) CALENDAR YEARS CAIRNS FITZROY MACKAY TOWNSVILLE ,6 TOTAL BUILDING APPROVALS ($ MILLIONS) CALENDAR YEARS 1,4 1,2 1, CAIRNS FITZROY MACKAY TOWNSVILLE Source : ABS 8731 SA2 Datacube 2 Rider Levett Bucknall Oceania Report Second Quarter 215

21 Location Intelligence New Zealand The New Zealand economy may be slowing slightly, however it remains stable with an expected confidence in business investment, increases in population and the continuation of the Canterbury rebuild. The New Zealand Government is forecasting continued growth for the New Zealand economy over the next couple of years. Real production GDP is expected to grow to 3.4% in 215 and 3.% in 216. The unemployment rate continues to fall as the economy has picked up. The positive outlook for the New Zealand economy points to continued solid jobs growth and the unemployment rate is expected to fall to 5.2% by the end of 215, 4.8% by the end of 216 and around 4.5% in subsequent years. Construction volumes have steadily increased since early 212, and current forecasts indicate continued growth in 215. Earthquake-related construction is expected to peak around the end of 215 but the level of overall construction in the economy is expected to continue to expand, maintained by continued growth in the housing market in Auckland. Residential construction activity has risen 1.5% in the March quarter the same rise as the non-residential sector. The volume trend of residential buildings has risen by 67% since the September 211 quarter but remains 7.6% below the high of June 24. The total value of all building work for 12 months to March 215 was $15.6 billion with $9.7 billion spent on residential and $5.9 billion spent on non-residential. These values represent a 1% increase on the previous month period and how construction is adding to the positive outlook for New Zealand in 215. NEW ZEALAND BUILDING CONSENTS ($ BILLIONS) RESIDENTIAL RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH NEW ZEALAND WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL TOTAL Rider Levett Bucknall Oceania Report Second Quarter

22 University of Auckland - Newmarket Campus, Engineering School

23 Location Intelligence New Zealand Auckland The New Zealand economy performed strongly over 214 with strong residential construction activity a key contributor to GDP growth driven by house building demand in Auckland and Canterbury. The Reserve Bank of New Zealand has kept the official cash rate unchanged in the last period and no change is expected this year. Generally business confidence is high with optimism in hiring, investment and increasing margins and profits. The Auckland housing market remains strong with demand outstripping supply. Residential building activity is increasing with apartment developments making a strong comeback and retirement villages sprouting up all over Auckland. This increased level of activity is affecting resource and supply chain capacity and is ultimately increasing labour and material costs. The strong residential market and demand has provided strong work flows through the civil and infrastructure sectors with new land zoning opening up areas of new residential development. Particularly in the North West and South of Auckland where new town centres such as Westgate and Ormiston are being developed. Non-residential construction activity has increased steadily over the year and has highlighted capacity issues within the industry with long lead times for off-site prefabricated products and labour shortages on structural trades. This is of concern given that whilst construction activity has increased, the current volume of work is not yet significant. There is promise of a number of large scale construction projects in Auckland and the amount of projects in for building consent has grown strongly. With this potential volume of work along with other significant construction projects in Christchurch, there will likely be industry capacity issues requiring significant industry investment. Key commercial projects in the planning for Auckland in the short to medium term include the proposed new International Convention Centre, the Precinct Downtown redevelopment and the City Rail Loop. The increased construction activity has seen an increase in main contractor margins and subcontractor pricing including increased labour costs. This has been concentrated in structural trades but is now being seen across the board in building services and finishing trades. Should construction activity continue to grow as expected then we will see a volatile market and tender prices. Going forward, construction cost escalation will need to be considered as a key risk element of project feasibility models. Director Stephen Gracey AUCKLAND BUILDING CONSENTS ($ MILLIONS) 1,2 1, RESIDENTIAL RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH NORTHERN & CENTRAL AUCKLAND REGION WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL TOTAL Rider Levett Bucknall Oceania Report Second Quarter

24 Location Intelligence New Zealand Christchurch Canterbury construction levels are at a record high and expected to increase further. Statistics New Zealand recently released data for the 214 period indicating a 38% increase in value of construction work from 213 levels. The data showed that the last three months of 214 were the busiest in terms of regional construction spending on record. The last period has seen an increased number of tower cranes evident in Christchurch as major projects continue to get underway. In the coming year a number of CBD commercial developments are due for completion and occupation which are expected to bring more earthquake displaced workers back into the central city. While the focus in the recent periods have been on the rebuild in the Victoria Street precinct, the emphasis appears to be moving further towards the central city with a number of large and medium size commercial projects at various points of construction. In addition, the Burwood Hospital redevelopment project is now over 5% through the construction programme and Christchurch Hospital has commenced enabling works packages in preparation for the major redevelopment planned for later this year. The University of Canterbury, while continuing earthquake repairs have awarded contracts for two major new developments. The Ministry of Justice, The Christchurch City Council, Ministry of Education, Lyttleton Port and Lincoln University are among other major institutions that also have considerable building programmes at various stages of planning and development. In the coming year a number of the rebuild anchor projects such as the Convention Centre and sporting facilities are also expected to get underway. Supply and demand continue to be the key market factors in Canterbury with regard to TPI. The New Zealand dollar has maintained a relatively strong position which continues to shelter the market somewhat from major material price rises. Construction cost escalation continues to be seen on a trade by trade and project by project basis, the market reacting to risk and project complexity. Certain trades with resource and capacity issues are seeing the highest increases but even within these trades there are fluctuations as the demand wave rises and falls. Construction planning of major projects in the years since the Canterbury earthquakes have seen programmes deferred, delayed and replanned and as a result cost escalation due to demand remains volatile and is expected to remain so. Director Malcolm Timms CHRISTCHURCH BUILDING CONSENTS ($ MILLIONS) 1,8 1,6 1,4 1,2 1, RESIDENTIAL RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH CANTERBURY WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL TOTAL 24 Rider Levett Bucknall Oceania Report Second Quarter 215

25 Location Intelligence New Zealand Wellington Local construction has improved over the past few months will a small number of good size projects now underway. There are also a number of other large potential projects being outlined in the media for construction later in the year. Signs are good for increasing development across all sectors including offices, infrastructure/civil, leisure and community based activities. Strengthening of existing buildings still remains as a key construction component in our region, and this is also driving much needed fit out upgrade works at the same time. The Wellington region recorded a 16% uplift in Non-Residential Consent value between late 213 and late 214, and this is likely to continue to improve during 215, but we remain a distant third behind the other major centres of Auckland and Christchurch in terms of work put in place. The Lower North Island regional centres continue to experience weak construction activity although a number of potential projects are being discussed and it is possible some good activity gains will be seen this year. Victoria University projects, Gateway and Rutherford House extensions, are now well underway and will continue through 215, as will the airport terminal extension works and some large office refurbishments for Government ministries - Health, Social Development and Education. A number of smaller public and private fit out works are also underway and a further tranche of work is set to get underway during the year. Transmission Gully and other major civil road works on the Kapiti Coast are progressing well and will lead to greater accessibility providing a boost to local communities for residential and commercial activity gains. Wellington City Council have released their 1 Year Plan document outlining a large group of proposed projects and initiatives to boost the local economy. Cost escalation remains at low levels compared with other centres around New Zealand and the majority of any escalation is being offset with reduced margins given the competitive tender environment which still exists. If some of the larger potential projects come to fruition during the year, it is likely that we will see an upward lift in pricing but it remains a demand driven market at present. Director Tony Sutherland WELLINGTON BUILDING CONSENTS ($ MILLIONS) RESIDENTIAL RETAIL OFFICES INDUSTRIAL EDUCATION HEALTH WELLINGTON WORK DONE ($ BILLIONS) RESIDENTIAL NON-RESIDENTIAL TOTAL Rider Levett Bucknall Oceania Report Second Quarter

26 RLB CRane Index Q2 215 SIxTH edition A total of two hundred and fifty six new cranes have been erected in Australia since Q3 214, highlighting the strength of the Australian construction industry. This count was offset by the removal of 169 cranes from sites around Australia which are nearing completion. The continuing growth of the residential market is evidenced by the 25 cranes erected over the past six months with only 11 removed, indicating the current residential multi storey market strength. The Q2 215 RLB Crane Index continues to highlight the positive sentiments of the construction industry. Strong crane number increases have been seen in the key markets of Brisbane, Melbourne, Perth and Sydney. Total cranes erected in Australia s key cities numbered 426 in RLB s latest Index, up from 324 cranes in Q This represents an increase of 32%. Twelve months ago there were 38 cranes sighted across Australia. Current cranes represent a 39% increase from twelve months ago. The positive growth of crane numbers across the country, corresponds with the amount of construction work done across the country. Significant increases in the volume of multi-level residential construction is enabling the growth of cranes across the skyline of Australia. The market demand for housing stock coupled with falling, or steady, interest rates are making the property sector very attractive for both investment and owner occupiers. The growth in SMSF and overseas investors have assisted this growth. NAB s current housing report found foreign buyers, reached 21 per cent in NSW but fell in Victoria from 33 per cent to 2.7 per cent in the 4Q 214. Firsttimers account for one quarter of all property sales, with 15 per cent being owner-occupiers and 1 per cent being investors. Record consumer spending in the Q4 214 of $218b, an increase of 1% from Q3 214, is fuelling an increase in retail construction highlighted by the growth in cranes seen at shopping centres around the country. A rise of 5 cranes immerged during the current period which represented a more than doubling of retail cranes. With the recent re-election of NSW s government and the change of governments in QLD, VIC & SA, spending within the education, health and civic sectors has reduced with significant projects close to completion and a lag before the commencement of new projects. AustrAliAn CrAne index summary Key Cities CrAne MoveMents AustrAliA Q3 214 % + - Net Q2 215 % ADeLAIDe BRISBANe CANBeRRA DARWIN GoLD CoAST MeLBouRNe PeRTH SyDNey total Note: Additions, Deletion & Movement Totals do not include the Gold Coast crane numbers (15) due to being the Gold Coast s first count. They are included in the totals as at March 215 Key ConstruCtion sector CrAne MoveMents AustrAliA Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other total Note: Additions, Deletion & Movement Totals do not include the Gold Coast crane numbers (15) due to being the Gold Coast s first count. They are included in the totals as at March 215 AUSTRALIA BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS Key sectors ADeLAIDe CoMMeRCIAL CIVIC BRISBANe ReSIDeNTIAL ReCReATIoN CANBeRRA HeALTH HoTeL DARWIN education CIVIL MeLBouRNe ReTAIL other PeRTH SyDNey LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL 26 Rider Levett Bucknall Oceania Report Second Quarter 215

27 RLB CRane Index Q2 215 adelaide SIxTH edition Since the last RLB Crane Index, RLB has observed a 25% reduction in the total number of cranes currently on projects around Adelaide compared to the Q3 214 crane count. OveRaLL STaTuS CrAne index sector summary Key sectors Five cranes were removed during the period with two new projects commencing. This decline can be attributed to the construction progress on the New Royal Adelaide Hospital where three cranes have been removed leaving the site with two cranes operating. one crane has been removed from the Aria Apartments on Gouger St and one crane removed from CBuS s 5 Flinders Street office development while the crane at the Vision on Morphett s development remains active. New cranes have been erected at the new Vue on King William residential development, The university of Adelaide s Health Building and the 115 King William commercial development. Both the health sector and the residential sector each represent 33% of all cranes visible in Adelaide with the education and commercial sectors each with 17%. LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other ConstruCtion sector CrAne MoveMents Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL. CIVIC. ReCReATIoN. HoTeL. CIVIL. other. total SOUTH AUSTRALIA BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL Rider Levett Bucknall Oceania Report Second Quarter

28 RLB CRane Index Q2 215 BRISBane SIxTH edition Brisbane s horizon has undergone a significant makeover in the last six months. RLB has recorded a 46% increase in the total number of cranes currently in use within Brisbane. There are 23 more cranes compared to the Q3 214 crane count. 35 cranes have been removed and 58 new cranes have been erected. The skyline is still dominated by cranes on residential developments, which now represent 78% of all cranes around Brisbane. The remaining cranes are on education, commercial, civil and other projects. OveRaLL STaTuS CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH Brisbane s construction market is being dominated by residential development with 51 new cranes being erected during the past six months. New developments commencing in the CBD, Milton, Spring Hill, Newstead, eastend, Fortitude Valley, Indooroopilly, Woolloongabba, Kelvin Grove, Coorparoo, South Brisbane, Carindale, eagle Farm, Highgate Hill, New Farm, Bowen Hills, St Lucia, Kangaroo Point, highlight the wave of new residential offerings that will be completed over the next eighteen months. A total of 31 cranes were removed from residential developments and one each in the commercial, education and the civil sectors. Residential developments nearing completion include those in the Valley, the CBD, Kelvin Grove, Milton, Toowong, Fortitude Valley, Bowen Hills, Newstead, Nundah, St Lucia, Marooka, South Brisbane and Wooloowin. one crane has been removed from each of Dexus s 48 Queen St development, at L estrange Tce in Kelvin Grove and at the Regatta Wharf. LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other ConstruCtion sector CrAne MoveMents Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH.. education ReTAIL.. CIVIC ReCReATIoN.. HoTeL.. CIVIL other total QUEENSLAND BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL 28 Rider Levett Bucknall Oceania Report Second Quarter 215

29 RLB CRane Index Q2 215 CanBeRRa SIxTH edition In this year s first crane count RLB identified a total of 5 cranes on Canberra s horizon. This is a 4% reduction from Q3 214 s count. In the last six months three cranes were removed from residential construction sites in Civic and Belconnen. The cranes removed represent 43% of the previous count with the reduction in cranes being offset slightly by a new crane at Woden, erected on a new residential development. Construction work done in the ACT is dominated by residential construction with apartments maintaining its strong position as the key construction driver within Canberra. over the past four years residential apartment construction has represented 3% of all non-engineering construction activity within the ACT with detached housing representing 23%. Significant non-residential activity has not been taking place over the past two years with 214 non-residential construction volume falling to almost 5% of the volumes seen in 212. Cranes remain on site in both Gungahlin and Civic. 1% of all the cranes sighted were on residential developments. OveRaLL STaTuS LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other ConstruCtion sector CrAne MoveMents Q3 214 % + - Net Q2 215 % CoMMeRCIAL.. ReSIDeNTIAL HeALTH.. education.. ReTAIL.. CIVIC.. ReCReATIoN.. HoTeL.. CIVIL.. other.. total AUSTRALIAN CAPITAL TERRITORY BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ MILLIONS HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL Rider Levett Bucknall Oceania Report Second Quarter

30 RLB CRane Index Q2 215 darwin SIxTH edition Darwin s construction market has remained steady with a marginal reduction in the total number of cranes on the skyline of Darwin s CBD and immediate surrounds. The small decrease in cranes within the current count reflects a 15% decrease from the previous count. The steady market is however marked with 1% churn rate represented by the completion of all the projects in the previous count replaced with all new projects. OveRaLL STaTuS CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH Cranes have been removed from residential projects within the Darwin Waterfront development precinct, SoHo Apartments, Malabar Court, Zen Apartments, Kim on Smith Apartments and The Avenue mixed use development, representing 1% of the residential cranes observed during the last count. Responding to the increased ongoing demand for accommodation, the residential market is continuing to lead the industry in Darwin. 1% of Darwin s cranes are being used on residential projects. New developments on which cranes have been erected are The Horizons on Harvey St, Tech Tower 1, 15 Mitchell Street, Finniss St, Shepherd St and The Jepun Apartments in the Smith Street Mall. The crane on the only commercial and retail development in Darwin, the Charles Darwin Centre, has now been removed as the project nears completion. LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other ConstruCtion sector CrAne MoveMents Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH.. education.. ReTAIL.. CIVIC.. ReCReATIoN.. HoTeL.. CIVIL.. other.. total NORTHERN TERRITORY BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ MILLIONS HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL 3 Rider Levett Bucknall Oceania Report Second Quarter 215

31 RLB CRane Index Q2 215 melbourne SIxTH edition Melbourne s construction market continues to gain strength, supported firmly by the residential sector. An additional 13 residential sites were observed having cranes erected over RLB s previous count. The total number of cranes currently working on sites in Melbourne at the time of our latest count is 116. This represents an increase of 25% over Q new cranes have been erected and 52 removed. The cranes removed represent a churn rate of 56% of cranes working at Q Cranes on residential projects now constitute 78% of all cranes erected across the wider Melbourne skyline, while 1% are on commercial and the rest in health, retail, education and others. of the 52 cranes removed from projects, 42 were from residential sites, 5 from commercial developments and 3 from health. The majority of the cranes removed were situated within the CBD. OveRaLL STaTuS LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other Projects where cranes have been removed are: Abode 318 on Russell St, My8 on the corner of Beckett & elizabeth St, Prima Pearl in Southbank, 567 Collins, Fulton Lane, Metro Park West, Istana Apartments, all within in the CBD, and Array Apartments in Docklands. Cranes have been removed from the VCCC in Parkville currently leaving this important health facility for Victoria with 1 crane remaining as the project s completion draws nearer. others have been taken down from Brunswick Heart in Brunswick, Smith& Co in Collingwood, Sanctuary in Richmond and The Hawksburn in Hawksburn. New Commercial commencements include the ABC s MAP development in Southbank, Walker Corp s KPMG Collins Square development, Melbourne Park s Administration and Media Centre. The commercial sector constitutes 11 cranes representing 9.5% of the current number of cranes within Melbourne. Cranes were removed from sites at Box Hill ATo, City West Police and others. The net result of commercial cranes is an additional 3 cranes in the sky. A number of distinctive developments have commenced construction within Melbourne. Cranes have been erected on CBuS s 35 Spring St in the CBD, Platinum Tower, Southbank Grand, opus Tower in Southbank, MDocklands and 888 Collins in Docklands. The trend looks set to continue for the foreseeable future with the demand for higher quality, luxury apartments continuing to grow. ConstruCtion sector CrAne MoveMents VICTORIA BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN.. HoTeL.. CIVIL.. other total HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL Rider Levett Bucknall Oceania Report Second Quarter

32 There is an 18% increase in the numbers of residential cranes for Q2 215, representing an increase of 13 cranes. Residential projects which remain under construction include upper West Side, Vision Apartments, 568 Collins St and The Carlson in the CBD, Convesso Concavo Apartments in Docklands, The Clarence in Malvern east and Bouverie St Apartments in Carlton. Despite the increase in the total number of cranes there has been 28% decrease in the cranes within the CBD compared to the last count. The cranes are currently spreading further out of the city with the suburbs seeing an increase in the number of large developments requiring cranes for material handling. Many low to mid-rise residential projects are now underway in Parkville, Collingwood, Fitzroy North, Preston, Doncaster, Brighton, Ivanhoe, Richmond, Hawthorn, Balwyn, Mentone, Malvern, Armadale, Carlton, Bentleigh, Moorabbin, and Caulfield. RLB have seen an increase in the Aged Care facilities commencements in this count. Cranes were sighted on the St Joseph s Mews development in Hawthorn and emmy Monash Aged Care in Caulfield North. The cranes found within the CBD, Southbank and Docklands areas represent approximately 4 % of all cranes, while the Northern, eastern, Southern suburbs share the remaining 22%, 22% and 17% respectively. RLB has also seen an increase in the amount of activity in regional areas just outside of Melbourne in Geelong with two cranes on the Deakin/ epworth Hospital site and the continuation of the Geelong hospital expansion. Construction commencements in Victoria for the last six months ending March 215, underline the strength of the residential market with a 26 % rise in value of apartment developments and a marginal rise in the non-residential sectors. The eastland retail development is advancing now with three cranes being erected. Within the health sector, epworth hospital in Richmond is still underway with two cranes together with two cranes at epworth development with Deakin university at Waurn Ponds. 32 Rider Levett Bucknall Oceania Report Second Quarter 215

33 RLB CRane Index Q2 215 GOLd COaST SIxTH edition The Q2 215 Crane Index welcomes the first count for the Gold Coast. Construction activity in the Gold Coast is high with 15 cranes sighted. Gold Coast s skyline is dominated by 9 cranes on residential developments spread across several coastal areas. The Aura Apartments in the Varsity Lakes area, Synergy in Broadbeach, Rhapsody Apartments in Surfers Paradise, Sundale Apartments and one 33 Apartments in Southport, Coast South Tower in Labrador and east Quays Stage one in Biggera Waters. These developments represent 6 % of all cranes erected in Gold Coast. Gold Coast locals are witnessing the transformation of Broadbeach with the refurbishment and additions to Pacific Fair Shopping Centre. The relifing of the Centre is well underway contributing 4 cranes to the total Gold Coast crane count. ConstruCtion sector CrAne index Q3 215 % CoMMeRCIAL. ReSIDeNTIAL 9 6. HeALTH education. ReTAIL CIVIC. ReCReATIoN. HoTeL. CIVIL. other. total Scheduled for completion in 215, the Gold Coast Private Hospital is under construction having two cranes working onsite. These cranes represent 13% of the total crane population. The pipeline of work within the region is positive with significant projects commencing with crane installations imminent. These projects include: The $1b dollar Jewel Project at Surfers Paradise, and The $4m 218 Commonwealth Games Village at Parklands. Rider Levett Bucknall Oceania Report Second Quarter

34 RLB CRane Index Q2 215 PeRTH SIxTH edition Cranes in Perth have increased by a total of 8% since the Q3 214 count. There are currently 43 cranes seen in Perth, 14 of which are on new construction sites. The housing sector dominates the Perth market where detached housing accounts for almost 5% of all nonengineering construction work in the State. The upturn, as in many other cities around Australia is driven by the residential sector with a 12% increase for the sector. The residential sector now represents 51% of all cranes in Perth. Between Q3 214 and Q2 215, 3 cranes were taken down as the Halo on Mount St project and a Scarborough development near completion. Cranes remain in east and South Perth. The increase in the number of cranes can be seen with the commencement of projects in Perry Lakes, Bulls Creek, Dalkieth, North Perth, Fremantle, Rockingham and on Mount Bay Road. Additional cranes have also been sighted at the Ascot in The Springs. Concerto Apartments which will be Perth s tallest building. Also Freshwater on Claremont and Taskers Apartments are now under construction. OveRaLL STaTuS LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other The first major civic building in Perth for the last 4 years, the new City of Perth Library, is now nearing completion and has removed its crane. We have seen a sharp decline in the number of cranes in the health sector in this crane count as the New Children s Hospital and Ronald McDonald House developments have removed cranes. one crane remains on the Hollywood Private Hospital. At present, there are 16 cranes on commercial projects, which indicates a 16% decline from the previous crane count undertaken in Perth. In part this is owed to the completion of the City Square South and the May Holman Center office redevelopment. A crane has been erected on Kings Square, while cranes on 933 Hay Street, the office Tower part of The Cathedral + Treasury Precinct and other projects in Subiaco, east and West Perth continue to shape Perth s skyline. Capital Square is one of the new projects that commenced construction in Perth along with other commercial developments in Northbridge. The cranes sighted on commercial projects are 37% of all cranes to be found in Perth. A crane was also removed from Coburn Central 1, leaving the retail sector without any cranes at the moment. Two new cranes have been raised on hotel projects since the Q3 214 count. Cranes have been erected on hotels in Rockingham, a Quest Serviced Apartments project. The hotel sector account for 9% all cranes counted in Perth. Two cranes were removed from the Burswood redevelopment site. 34 ConstruCtion sector CrAne MoveMents WESTERN AUSTRALIA BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS 7. Rider Levett Bucknall Oceania Report Second Quarter Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH education.. ReTAIL CIVIC ReCReATIoN.. HoTeL CIVIL.. other.. total HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL

35 RLB CRane Index Q2 215 Sydney SIxTH edition RLB has identified a total of 162 cranes on Sydney s horizon. This is 36% increase from the Q3 214 count. 42% of all cranes previously counted have been removed while 93 cranes, accounting for 57% of the current count, were erected. This represented a churn rate of 42% of the cranes identified in the previous Index RLB has witnessed a substantial increase in the number of cranes in the residential sector. Currently, there are 123 cranes on residential developments which is 76% of all new cranes and an increase of 98% for the residential sector. Construction work done for 214 highlighted the strength of the residential market in Sydney with an additional $2.5b of residential work performed over 213 results according to ABS numbers. This additional work has resulted in the residential sector adding 76 new cranes in the last six months which accounts for 61% of all cranes erected in Sydney and near regions. These new projects include: The Belle Apartments, Belmont Wharf Apartments, Tattersall and Arena Apartments in Newcastle, Anglican Care in Toronto, Camperdown NQ, Savannah Wentworth Point, Homebush Grand Central Apartments, The Gardens in Putney Hill, Waitara Apartments together with projects in Broadway, Marrickville, Macquarie Park, Bondi, St Leonards, South Hurstville, Riverwood, Randwick, Meadowbank, Kensington, Hornsby, Glebe, Carlingford, Breakfast Point, Baulkham Hills, Alexandria and Asquith. Removals in the residential sector has seen 15 cranes removed from construction sites around Birchgrove, Botany, Chippendale, Lidcombe, Liverpool, Potts Point, Ryde, Sans Souci and from Wentworth Point. Continuations represent 38% of the current count with cranes remaining on projects in Zetland, Wolli Creek, Waterloo, Sydney, olympic Park Sydney, Ryde, Strathfield, Rushcutters Bay, Rosebery, Rhodes, Milsons Point, Mascot, Lindfield, Lewisham, Lane Cove- Bay Pavilions, Kogarah, Kellyville, Ridge, Hurstville, erskineville, Darlington, Castle Hill, Chatswood, Canterbury, Campbelltown, Burwood and the Sky development in North Sydney. ConstruCtion sector CrAne MoveMents Q3 214 % + - Net Q2 215 % CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL.. CIVIL other total NEW SOUTH WALES BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST $ BILLIONS 8. OveRaLL STaTuS LeGend InCReaSe In number Of CRaneS decrease In number Of CRaneS CRane numbers STeady CrAne index sector summary Key sectors CoMMeRCIAL ReSIDeNTIAL HeALTH education ReTAIL CIVIC ReCReATIoN HoTeL CIVIL other HOUSES APARTMENTS RENO & EXT RETAIL OFFICES EDUCATION HEALTH INDUSTRIAL Rider Levett Bucknall Oceania Report Second Quarter

36 The commercial sector activity decreased by four cranes representing 1% of the net movement for the period with 17 cranes observed. Four new cranes were erected in Barangaroo, Top Ryde and in Pyrmont. Projects in Barangaroo, Crows Nest, Murray Rose and in Sydney olympic Park have finished their materials handling phase and a total of eight cranes were removed. We have seen an upturn in the retail sector, as two cranes were erected in Zetland and at Woolworth s site in Crow s Nest, increasing the overall number of cranes from two to four with cranes remaining on sites in Bankstown and Whetherill Park. There is one crane present on an educational development in Wahroonga, while seven were removed from educational projects in Camperdown, Darlington and Kensington as well as from the Theological Centre in Burwood and from the Chu Chak Building. This represents an 86% drop in the education sector, where there is only the one crane present. The health sector has seen a 4% decline in cranes with cranes removed from the Hornsby Hospital, Nelune Comprehensive Cancer Centre and Australian Advanced Treatment Centre project in Randwick, Sydney eye Hospital, the South east Bega Hospital in Bega as well as from the Wollongong Hospital as they reach completion. The construction of the new Hurstville Private Hospital is now underway while The Blacktown Mount Druitt Hospital now has one crane remaining. The recreational sector accounts for 7% of all cranes in Sydney where there has been a net increase of six cranes due to the increase in the number of cranes installed at Darling Harbour for the new convention centre project. Lend Lease has installed seven new cranes within the precinct. The Revesby Workers Club project removed their only crane during the period, concentrating all recreational cranes in the Darling Harbour precinct. one crane has been sighted on The Newcastle Courthouse in Newcastle, which is presently the only civic project we identified in this crane count. 36 Rider Levett Bucknall Oceania Report Second Quarter 215

37 For further comments, please contact: stephen ballesty Director of Research & Development stephen.ballesty@au.rlb.com John Cross oceania Manager, Research & Development john.cross@au.rlb.com rlb.com About the rlb CrAne index Rider Levett Bucknall s RLB Crane Index is published biannually in Australia, New Zealand, usa, Gulf States and Southern Africa. The Australian Crane Index tracks the numbers of cranes in significant cities of Australia. The count gives a simplified measure of the current state of the construction industry s workload in each of these locations. each RLB office physically counts all fixed cranes appearing on each city s skyline twice yearly which provides the base information for the Index. Rider Levett Bucknall Oceania Report Second Quarter

38 RLB CRane Index Q2 215 THIRd edition new ZeaLand The New Zealand economy continues its expansionary phase, with Auckland s skyline being dominated by the most number of cranes in the country. Around the country 43 new cranes have been installed. Predominately these have been in Auckland and Christchurch with 13 and 18 respectively, with Wellington adding six new cranes on important projects. Total cranes seen within New Zealand reached 72 slightly down from the 76 seen in RLB s last Index in Q NeW ZeAlAND CrANe index summary Key CiTies Key sectors AuCkLAND COMMERCIAL CIvIC CHRISTCHuRCH RESIDENTIAL RECREATION DuNEDIN HEALTH HOTEL HAMILTON EDuCATION CIvIL QuEENSTOWN RETAIL OTHER Construction work done around the country in 214 has risen 42% from levels seen in 212. The rebound is predominately within the residential sector increasing by 58% and non-residential sectors by 21%. This is seen in the rise in the number of cranes in both the residential and commercial sectors. TAuRANgA WELLINgTON LeGend InCRease In number Of CRanes CrANe MoveMeNTs NeW ZeAlAND decrease In number Of CRanes CRane numbers steady The annual value of building consents approved during 214 were up 22.8% for new building work and up 14% for altered works over 213 levels, giving some surety to levels of future work for the Industry. The Reserve Banks introduction in October 213 of its residential property loan to value ratios regime curbed the market for a time, but the Auckland market has picked up a head of steam. With low interest rates, below trend inflation and strong migration, the residential market is very strong which is evidenced by the growth in residential cranes. The numbers of residential cranes have risen in Auckland since our last Index, the commencement of six new residential projects within Auckland give a positive take on the residential sector strength. A total of 47 cranes were removed from projects within New Zealand representing 63% of the cranes seen at our last count in Q This is as expected with 26 cranes removed from within Christchurch. These cranes were undertaking earthquake rebuilding works within the central city area. The positive signs for Christchurch, is that for each crane removal, completion of commercial and civic assets become a reality that will bring activity and life into the central city activity zone. Projects such as the Bus interchange, The Arts Centre and projects around Hereford St, Manchester St and Oxford Terrace, are delivering the continued effort of the Christchurch Earthquake Recovery Authority. Despite Christchurch s imminent peak in the volume of construction work for the earthquake rebuild, the construction sector will continue to remain a key component of New Zealand s growth over the next few years. Both Hamilton and Christchurch recorded falls of five and eight respectively, offset by Wellington s strong growth in the commercial and education sectors. Queenstown and Tauranga both have cranes erected on new projects, adding to the strong positive sentiment of NZ s future construction workload. Q3 214 % + - Net Q2 215 % AuCkLAND CHRISTCHuRCH HAMILTON QuEENSTOWN DuNEDIN TAuRANgA WELLINgTON ToTAl Key CoNsTruCTioN sector CrANe MoveMeNTs NZ Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION.. HOTEL CIvIL OTHER ToTAl ANNUAL CONSTRUCTION WORK DONE - NEW ZEALAND $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS Source : Statistics New Zealand 38 Rider Levett Bucknall Oceania Report Second Quarter 215

39 RLB CRane Index Q2 215 auckland THIRd edition new ZeaLand Since RLB s first New Zealand Crane Index in March 214, RLB has seen strong growth in the residential and commercial sectors of the Auckland construction industry. The latest RLB Crane Index highlights 29 cranes within Auckland s skyline. This is a gain of 3 cranes from our last Index in Q3 214, but a growth of 8 cranes from those observed 12 months ago. The installation of cranes on 5 new commercial sites is significant for the city. The increase in constriction work in Auckland is highlighted by the strong residential performance. Residential construction work done has jumped 43% since 212 with non-residential work done up 25%. Thirteen new cranes rose on Auckland s skyline since the last Index undertaken by RLB in Q Five of the new cranes are each on Dominion Road in St Albans, Lynn Mall Cinemas and Dining, goodman s Building C in Wynyard, victoria St office development and the Mansons on victoria St which are all within the commercial sector. Further cranes have been erected at the ATC Theatre in Wynyard, and at residential projects at the Rothesay Bay Apartments, Hobson St, Summit in karangahape Rd and the Rose gardens. Auckland s skyline is dominated by residential projects which represent 37 % off all cranes, followed by civil project with 22% and commercial with 19%. Cranes remain on construction sites at the university of Auckland s Science Centre and the Accor Hotel conversion project. A further crane was erected for the Waterview Tunnel Motorway & Bridges project bringing total cranes working on the project to three, while other civil projects, the Te Atatu Interchange maintained two cranes and the Lincoln Road Motorway widening project removed one crane. The new Fonterra HQ and the Cider Building office development also continue to be under construction. A total of ten cranes were removed from sites around Auckland. Cranes were removed from residential sites in Ponsonby, Remuara, Ellerslie, the Altera apartments in Stonefields and the Manukau Central Apartments. Cranes were also removed from the Westgate Pak n Save retail development and the Manukau Courts. OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CoNsTruCTioN sector CrANe MoveMeNTs CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION.. HOTEL CIvIL OTHER ToTAl ANNUAL CONSTRUCTION WORK DONE - NORTHLAND AND CENTRAL AUCKLAND $ BILLIONS 6 5 The Sugar Tree Apartments, The Poynton Retirement village project on Shakespeare Rd, Howe St residential project together with three residential projects in Eden Terrace and Mount Eden, all have cranes remaining from the last Index RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter

40 RLB CRane Index Q2 215 THIRd edition new ZeaLand CHRIsTCHuRCH The number of cranes on Christchurch s skyline has dropped by 26% compared to the last crane count. 23 cranes were sighted during the recent RLB Crane Index. Commercial developments have been dominating the construction sector over the past six months and they represent 94% of all cranes in the city. 4% of the cranes belong to civil projects. The value of construction work done in 214 within the Canterbury region was $4.b, up $1.1b from 213 results. This 39% increase is reflected in the considerable housing construction being undertaken in Christchurch. Nonresidential construction work was up 23% from 213 levels during 214. The removal of cranes is seen as positive as more buildings that are stabilised together with the completion of new assets will be a strong indication that the rejuvenation of the civic centre after the devastation of the earthquake is finally starting to take shape. Even though 26 cranes were removed since the last Index, 18 new cranes have been counted on 11 new commercial and civil sites, highlighting the ongoing nature of the rebuild. OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER Additional cranes have been sighted on existing projects at 2 Tuam St, Justice Precinct, Awley Development and at Cashel Square. New cranes that have been observed include construction sites at 171 victoria St, Cnr Walker and Durham St South, Cnr St Asaph and Manchester St, 221 Tuam St, Bus Interchange, 164 Hereford St, Cnr Cashel and Manchester St, 254 Montreal St, The Arts Centre Christchurch, Cnr Manchester and Oxford Tce, Manchester St. Within the education sector, heavy work has been completed at Christ s College together with removals at the Southern Cross Hospital as part of the health sector. Cranes have also been removed from 55 Colombo St, 9 Hereford St, Cnr Hereford and Durham St, Bridge of Remembrance, 37 Hereford St, 88 Worcester Blvd, 129 gloucester St, 145 gloucester St, 165 gloucester St, 264 Tuam St, 12 Moorhouse Ave, 47 Hereford st, Cnr Park Tce and Armagh St, Christ s College, Botanical gardens, Southern Cross Hospital,213 Fitzgerald Ave, 138 victoria St, 299 Durham St and 141 Cambridge Tce. CoNsTruCTioN sector CrANe MoveMeNTs Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL.. HEALTH EDuCATION RETAIL.. CIvIC.. RECREATION.. HOTEL.. CIvIL OTHER ToTAl ANNUAL CONSTRUCTION WORK DONE - CANTERBURY $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS 4 Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter 215

41 RLB CRane Index Q2 215 HamILTOn THIRd edition new ZeaLand South of Auckland and in the Bay of Plenty region, construction work done is also showing positive trends. During 214, total works done in the region were $2b, 32.5% above 212 levels and 11% above 213 results. Residential work done during 214 was 5% above 212 levels and non-residential work done up by 1%. Even though there are only a total of two cranes currently in the Hamilton skyline, a sharp decrease from 7 in the last crane count, the imminent openings of the Infant Formula Factory on gallagher Drive, the Mainfreight new depot on Ruffell Road and the Fast Fitness development sites will enable employment opportunities in these new facilities. Waikato university Law block on knighton Road remains under construction with one crane on site, while Ebbitts Prestige commercial development on grey St has commenced, and a new crane installed. OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER CoNsTruCTioN sector CrANe MoveMeNTs Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL.. HEALTH.. EDuCATION RETAIL.. CIvIC.. RECREATION.. HOTEL.. CIvIL.. OTHER ToTAl ANNUAL CONSTRUCTION WORK DONE - SOUTH AUCKLAND & BAY OF PLENTY $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter

42 RLB CRane Index Q2 215 TauRanGa THIRd edition new ZeaLand Tauranga has had a significant increase in the number of cranes in this crane count. Currently, there are a total of 3 cranes operating within the city. Tauranga s Eastern Link highway project, a project of strategic national significance, is the Bay of Plenty s largest roading project. The number of cranes on the project has doubled from one to two since RLB s last Index. The construction of Trustpower s new Head Office building in Durham Street has now commenced and a new crane has been installed. OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER CoNsTruCTioN sector CrANe MoveMeNTs Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL.. HEALTH.. EDuCATION.. RETAIL.. CIvIC.. RECREATION.. HOTEL.. CIvIL OTHER.. ToTAl ANNUAL CONSTRUCTION WORK DONE - SOUTH AUCKLAND & BAY OF PLENTY $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS 42 Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter 215

43 RLB CRane Index Q2 215 THIRd edition new ZeaLand OTaGO (QueensTOWn & dunedin) Queenstown has added three new cranes to add to the picturesque backdrop of the Remarkables. The construction work done increases of the North Island and Canterbury haven t been felt as strongly in the South during 214, but building activity is still positive with a net increase in the number of cranes in Queenstown. Construction work done in the South Island (excl. Canterbury) has only shown a 2% increase over 213 results. Residential was up 3% and non-residential down 1%. The positive aspects of Queenstown s economy is that it has a total of 5 cranes in the air at RLB s last count. At Frankton, an additional crane has been installed at the Five Mile gateway retail centre making two and one remains on the Landings retail project. One new crane has been erected in Millbrook on a residential project together with another on glenda Drive for a commercial project. Two Cranes have been removed from the Shotover Primary School and 9 Shotover St OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER Dunedin s sole crane is still assisting the redevelopment of the historic NZ Loan and Mercantile building CoNsTruCTioN sector CrANe MoveMeNTs Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL HEALTH.. EDuCATION RETAIL CIvIC.. RECREATION.. HOTEL.. CIvIL.. OTHER.. ToTAl ANNUAL CONSTRUCTION WORK DONE - MARLBOROUGH, NELSON, WESTLAND, OTAGO AND SOUTHLAND $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter

44 RLB CRane Index Q2 215 WeLLInGTOn THIRd edition new ZeaLand RLB has observed a 5% increase in the number of cranes in Wellington to the previous count at Q The total number of cranes in Wellington has increased from six to nine cranes. A total of six new cranes have commenced work in Wellington since RLB s last Index. Three cranes have been erected at the Ministry of Health development, one each at the Ministry of Education s refurbishment and in victoria Street for a new residential project and two cranes at victoria university s new Sciences Block. Cranes remain on the Wigan St apartments, the Terrace and Waterloo Quay projects. One crane was removed from the Taranaki St apartment site and two removed from The Buckle St Tunnel project. OveRaLL status LeGend InCRease In number Of CRanes decrease In number Of CRanes CRane numbers steady CrANe index sector summary Key sectors COMMERCIAL RESIDENTIAL HEALTH EDuCATION RETAIL CIvIC RECREATION HOTEL CIvIL OTHER CoNsTruCTioN sector CrANe MoveMeNTs Q3 214 % + - Net Q2 215 % COMMERCIAL RESIDENTIAL HEALTH.. EDuCATION RETAIL.. CIvIC.. RECREATION.. HOTEL.. CIvIL OTHER.. ToTAl ANNUAL CONSTRUCTION WORK DONE - WELLINGTON $ BILLIONS RESIDENTIAL BUILDINGS NON-RESIDENTIAL BUILDINGS ALL BUILDINGS 44 Source : Statistics New Zealand Rider Levett Bucknall Oceania Report Second Quarter 215

45 For further comments, please contact: Chris haines Director RLB Auckland chris.haines@nz.rlb.com stephen ballesty Director of Research & Development stephen.ballesty@au.rlb.com John Cross Oceania Manager, Research & Development john.cross@au.rlb.com rlb.com AbouT The rlb CrANe index Rider Levett Bucknall s RLB Crane Index is published biannually in Australia, New Zealand, usa, gulf States and Southern Africa. The New Zealand Crane Index tracks the numbers of cranes in significant cities of New Zealand. The count gives a simplified measure of the current state of the construction industry s workload in each of these locations. Each RLB office physically counts all fixed cranes appearing on each city s skyline twice yearly which provides the base information for the Index. Rider Levett Bucknall Oceania Report Second Quarter

46 Clyde Quay Wharf, Wellington

47 OFFICES AROUND THE WORLD AUSTRALIA Adelaide Brisbane Cairns Canberra Darwin Gold Coast Melbourne Newcastle Northern NSW Perth Sunshine Coast Sydney Townsville NEW ZEALAND Auckland Christchurch Hamilton Palmerston North Queenstown Tauranga Wellington MIDDLE EAST Abu Dhabi Doha Dubai Muscat Riyadh Africa RLB Pentad Alliance Gaborone (Botswana) Johannesburg (South Africa) Port Louis (Mauritius) Maputo (Mozambique) Pretoria (South Africa) Cape Town (South Africa) UK Birchwood/Warrington Birmingham Bristol Glasgow London Manchester Newcastle Sheffield Welwyn Garden City Wokingham EUROPE RLB EuroAlliance Austria Belgium Bulgaria Czech Republic Estonia France Germany Greece Hungary Ireland Italy Kazakhstan Latvia Luxembourg Malta Netherlands Norway Poland Portugal Romania Russia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine CHINA Beijing Chengdu Chongqing Dalian Guangzhou Guiyang Haikou Hangzhou Hong Kong Macau Nanjing Qingdao Shanghai Shenyang Shenzhen Tianjin Wuhan Wuxi Xiamen Xian Zhuhai INDONESIA Jakarta Japan Tokyo MALAYSIA Kuala Lumpur PHILIPPINES Cebu Davao Manila SINGAPORE Singapore SOUTH KOREA Jeju Seoul THAILAND Bangkok VIETNAM Ho Chi Minh City CANADA Calgary Toronto CARIBBEAN Bahamas Barbados Grand Cayman St Lucia USA Austin, TX Boston, MA Chicago, IL Denver, CO Guam, GU Hilo, HI Honolulu, HI Kennewick, WA Las Vegas, NV Los Angeles, CA Maui, HI New York, NY Orlando, FL Phoenix, AZ Portland, OR San Francisco, CA Seattle, WA Tucson, AZ Waikeloa, HI Washington, DC Rider Levett Bucknall Oceania Report Second Quarter

48 rlb.com