RLB Crane Index. Key Construction Sector Crane Movements Australia AUSTRALIA BUILDING WORK DONE CALENDAR YEARS ORIGINAL COST

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1 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. AUSTRALIAN CRANE INDEX SUMMARY Key Cities Adelaide Brisbane Canberra Darwin Melbourne 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. Perth Sydney Increase in number Decrease in number Crane numbers 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 across the skyline of Australia. The market demand for housing stock coupled with falling, or, 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. Crane Movements Australia 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 Australia 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 $ BILLIONS

2 Adelaide Since the last RLB Crane Index, RLB has observed a 25% reduction in the total number currently on projects around Adelaide compared to the Q3 214 crane count. 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 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% Total SOUTH AUSTRALIA BUILDING WORK DONE $ BILLIONS

3 Brisbane Brisbane s horizon has undergone a significant makeover in the last six months. RLB has recorded a 46% increase in the total number 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. 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. 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 Total QUEENSLAND BUILDING WORK DONE $ BILLIONS

4 Canberra 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 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. 1% of all the cranes sighted were on residential developments Total AUSTRALIAN CAPITAL TERRITORY BUILDING WORK DONE $ MILLIONS

5 Darwin Darwin s construction market has remained with a marginal reduction in the total number 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 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. 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 Total NORTHERN TERRITORY BUILDING WORK DONE $ MILLIONS

6 Melbourne 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 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% 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. 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. s have been taken down from Brunswick Heart in Brunswick, Smith& Co in Collingwood, Sanctuary in Richmond and The Hawksburn in Hawksburn. New 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 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. VICTORIA BUILDING WORK DONE $ BILLIONS Total

7 There is an 18% increase in the numbers of residential cranes for Q2 215, representing an increase of 13 cranes. 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 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.

8 Gold Coast 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 % 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.

9 Perth 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 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. 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 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. WESTERN AUSTRALIA BUILDING WORK DONE $ BILLIONS Total

10 Sydney 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 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 Total NEW SOUTH WALES BUILDING WORK DONE $ BILLIONS

11 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 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 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.

12 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 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.