rlb international report third quarter 2012

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CONSTRUCTIONMARKETINTELLIGENCE

THIRD QuaRTeR 2012

INTERNATIONALREPORT



Disclaimer: While the information in this publication is believed to be correct at the time of publishing, no responsibility is acceptedfor its accuracy. Persons desiring to utilise any information appearing in the publication should verify its applicability to their speciccircumstances. Cost information in this publication is indicative and for general guidance only and is based on rates as at July 2012.

INDEPENDENT CONSULTANTSLOCAL KNOWLEDGE AND EXPERTISEGLOBAL NETWORK

RIDeR LeVeTTBuCKNaLL

Rider Levett Bucknall areindependent property marketand construction cost consultantswith ofces located globally.

THe INTeRNaTIONaLRePORT

The Rider Levett BucknallInternational Report is publishedtwice-yearly and providesdetailed local constructionmarket intelligence and data.

THe INTeRNaTIONaLRePORT uPDaTeSuRVeY

The Rider Levett BucknallInternational Report issupplemented by the twice-yearly International ReportUpdate Survey.

Rider Levett Bucknall, through professional excellence and proven performance, continues to grow as one of the

world's most active property and construction consultancy groups. We strive to advance through innovation and

research, publishing Cost Reports with particular reference to the regions in which we do business.

Partnering is central to our customer proposition. The successful completion of any project is a team effort and over

the years Rider Levett Bucknall has developed efcient relationships with its clients and leaders in the property and

construction industry.

As we’ve developed new ways to achieve optimum technical and economic outcomes for projects, we’ve challenged

not so much what we need to do today, but what we need to do tomorrow to ensure we lead the way. This philosophyis about reading trends in the market, our clients and their businesses to achieve protable and successful outcomes.

The International Report third quarter 2012 is part of this strategy.

A productive and progressive approach can also be seen in industry support on a global basis such as sponsorship of

the World Architecture Festival (WAF), the world’s largest festival and awards dedicated to celebrating and sharing

architectural excellence from across the globe. Through initiatives like WAF Rider Levett Bucknall ensures best

practices are actively encouraged. 2012 heralds the festival's move to Marina Bay Sands in Singapore (3-5 October).

Rider Levett Bucknall is proud to have provided cost consultancy services to this landmark development.

Visit rlb.com/pp

Cover: Chengdu City, Sichuan, China



INTERNATIONALREPORT

The Intrntionl Rport, covers the globe, providing a half-yearly

snapshot of construction market conditions and price movements

around the world, via commentaries and analysis from Rider Levett

Bucknall Directors in key locations

A broad overview of rionl conomic isss is provided on Page 1,

followed on pages 3-27 by commentaries from Rider Levett Bucknall

Directors in multiple locations in each region. Commentary on each

region is supplemented by a Constrction Cost Rltivity tbl for

that region.

This dition of th Intrntionl Rport is plsd to wlcomcommntris nd mrkt nlysis from Chnd, Jkrt, Mnil

nd Mmbi. Or asi Focs sction on ths citis, ps 9-12,

showcss th rpid conomic nd commrcil dvlopmnt in ch

loction, s asin dvlopmnt contins pc.

Pages 28 and 29 feature Constrction Rts for building types

in cities within each region, providing easy comparison between

locations.

Pages 30 and 31 consider the wider issue of general mrkt ctivity

lvls for seven building types, in each location, using the Rider Levett

Bucknall Construction Activity Cycle Model to provide an insight into

market movements. Regional analysis of this data is shown on page 31,with a total of responses within each cycle-sector, giving an overview

of activity levels in each Region.

On pages 32 and 33 we feature Ky Sttistics – the data that

describes countries’ general economic performance, as a backdrop

against which the construction industry functions on the ground.

Overall Intrntionl Constrction Cost Rltivity is shown on page

34, with each location placed in its ranking spot in respect of al the

other locations in the study.

The Intrntionl Rport is a member of a suite of Reports produced

by Rider Levett Bucknall. Currently, in addition to the InternationalReport, the suite comprises the Caribbean, European, Gulf States,

Hong Kong and China, Oceania, Singapore, USA and Vietnam Reports

Each document has its own unique avour, driven as they are, by the

conditions and circumstances of the particular economy in question.

All are available at www.rlb.com. Textual commentary is also featured

in the Rider Levett Bucknall Intelligence Smartphone App and via

Desktop WebApp, at www.rlbintelligence.com



Instantcost dataon the spot

Global Construction and Property Advisorsrlbintelligence.com

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Available on iPhone, Android, Windows Phone7

and Blackberry Operating Systems



1

INTERNATIONALREPORT

aSIa

With the Eurozone’s debt crisis

showing no signs of abating and

the sluggish rate of recovery of theUS economy, Asian export markets

have been negatively affected by the

slowdown in the global economy.

China’s real year on year GDP

growth slipped to 7.6% in the second

quarter of 2012, slowing for the sixth

consecutive quarter to the lowest

since the global nancial crisis in the

rst quarter of 2009.

The central government has been

easing its scal and monetary

policies as ination has moderated.China’s ination rate was as low as

2.2% in June, suggesting that more

policy relaxation is likely in the near

future in order to stimulate domestic

construction demand.

Looking ahead, construction activity

levels in Asia are likely to remain

sufcient to maintain steady growth

momentum as domestic consumption

is pursued, offsetting weaker exports.

Tender prices in most locations in

Asia are expected to be at or torise moderately in the next couple of

quarters.

aMeRICaS

The economic news for the United

States for the rst half of 2012

has been mixed, and somewhat

disappointing, after another strong

start to the year. The important

Consumer Condence Index declined

in May and then fell further in June,

showing the difculty that the general

economy has in building steam.

Home foreclosures continued to fall

generally, but faster in those states in

which Deeds of Trust are used rather

than mortgages. Some states, such as

Arizona, are already reporting rising

home prices. New home construction

continued to show signs of a

rebound, with modest gains in starts,

which followed the big quarterly

gains of 32%, 49% and 23% from the

3rd quarter of 2011 to the 1st quarter

of 2012.

Commercial construction activity

remained tame although there

was life in a few sectors such ashospitality (responding to a pick-up

in business travel) and New York City

continued to do well.

eMea

The European crisis is having a

signicantly de-stabilising effect on

members of the global economy, and

all the more so on the members of

the troubled region themselves.

The UK is seeing a slowdown in all

areas of the economy, as lack ofavailable funding from risk-averse

banks and Government austerity

measures take hold. Developers are

struggling to secure pre-lets and

adequate margins to meet funding

requirements and the housing market

rests at 10 year lows.

In the Middle East, Qatar’s economy

remains one of the strongest

performers in the world, with recent

increases in oil production. A number

of mega-projects are underwayand tendering has begun for

infrastructure projects for FIFA World

Cup 2022.

The non-hydrocarbon economy

continues to recover in the UAE,

while limited potential oil production

increases will keep growth moderate.

Residential over-supply remains a

factor in Dubai, although a resurgence

in non-residential construction

activity is apparent. As in Qatar, a

number of on-going mega-projectscontinue to drive activity in Abu

Dhabi, with most sectors performing

strongly.

OCeaNIa

Construction in Australia’s resource-

dominated states of Western

Australia, Queensland and Northern

Territory remains buoyant as ongoing

investment from the mining sector

stimulates activity.

Elsewhere, in the South Eastern

states, activity struggles to show

signs of improvement. Extremeconcern over declining future

workloads is haunting the Sydney

market as a number of contractors

have gone into administration.

Reduced opportunities and increased

uncertainty in Adelaide is weighing

heavily, and Melbourne, although only

showing early signs of decline and

with a surge in apartment approvals,

continues to be hampered by

problems of access to nance.

The recent advent of the CarbonPricing Mechanism (CPM), commonly

referred to as the Carbon Tax, raised

signicant concerns as to how

building pricing would be affected.

These concerns have not yet abated

completely. At the time of publication,

any measurable effect is still unclear,

due to the high levels of competition

in many regional markets. Separating

truly CPM-related cost impacts from

non-CPM-related cost imposts may

be challenging for those wishing to

pass on a price increase, especiallyconsidering the watchful attention

of the Australian Competition and

Consumer Commission (ACCC).

As New Zealand households, and

the Government itself, continue to

‘de-leverage’, the economy remains

subdued. In Auckland, weak activity

pervades both the residential and

non-residential sectors, however there

are signs that the market has at least

stabilised.

With the release, in late July, of

the Christchurch central city

development blueprint the

construction market may be able to

develop some condence to begin

the reconstruction process. Some

residential reconstruction is already

underway and tender price increases

are evident, which suggests that

pressure will only grow once CBD

construction begins.

Wellington remains at historic lows,with little to suggest an upswing in

market conditions in the short term.



Hong Kong harbour, Hong Kong



3

INTERNATIONALREPORT

MARKETINTELLIGENCE

ASIA

BEIJING

Supply of Grade A ofces in Beijing

has remained tight and new space

has been quickly absorbed by the

robust demand from multinational

companies and domestic enterprises,

to full headcount expansion plans

in the capital. The rents of CBD

ofce space in Beijing have reached

historic highs.

The government’s continued

tightening policies have damped

the overall residential property

market, with a plummet in loans,

sales transaction volumes and capitalvalues. However, the government

announced in the Beijing 2011-2015

land supply plan that there will be

no land supply for residential use

within the 3rd Ring Road in Beijing,

with future residential developments

mainly focused in suburban areas.

Although the overall stock of

commercial properties in Beijing is

huge, its geographical distribution

is unreasonable. With this rapid

development in the southern

and western regions of Beijing,

developers are looking for potential

commercial property development

opportunities within those regions.

The Beijing construction industry

continues to maintain a steady

growth momentum. As more ofce,

commercial and suburban high-end

residential projects are expected

to commence in the next couple of

quarters, tender prices are forecast

to rise moderately.

HONG KONG

According to Rider Levett Bucknall’s

Tender Price Index, which measures

tender price movements of builders’

works in the private sector in Hong

Kong, there was an increase of 2.1%

in tender prices in the rst quarter

of 2012. On a year-on-year basis, the

increase was 8.4%.

Hong Kong’s economy grew by

0.4% year-on-year in real terms in

the rst quarter of 2012, compared

with the 3% increase in the fourth

quarter of 2011. According to the

Composite Consumer Price Index,overall consumer prices rose by 4.9%

in March 2012 over the same month a

year earlier. The seasonally adjusted

unemployment rate was 3.4% in

January to March 2012, which is the

same as that recorded in December

2011 to February 2012.

In the past few months, the Eurozone

sovereign debt crisis has appeared

increasingly unstable. While the

economy in the United States has

exhibited some early yet uncertainsigns of recovery, China’s economy

has been growing at a much slower

pace than that in the past decade.

Materials prices are therefore more

stable than a year ago.

Locally, the construction industry

has been dominated by large

infrastructure works, with the peak

of construction output expected in

the coming two years. The shortage

of skilled labour and construction

professional staff will remain a

major concern in the next two to

three years. With abundant job

prospects, contractors are unwilling

to bid for building projects that

are complicated or have many site

or programme restrictions. Tender

prices are therefore expected to

continue to rise in the remaining

months of 2012.

aSIa CONSTRuCTION

COST ReLaTIVITIeSJuL 12

HONG KONG 128

MACAU 105

SINGAPORE 99

BEIJING 89

SHANGHAI 86

GUANGzHOU 77

SHENzHEN 75



4

INTERNATIONALREPORT

MARKETINTELLIGENCE

ASIA

GUANGzHOU

Guangzhou’s recent GDP slowdown

has followed the national trend, amid

weakening exports and the slashing

of infrastructure investment.

Government measures to curb

soaring house prices last year have

resulted in house prices having fallen

by about 10% this year, as developers

cut prices to boost sales and cash

ow. Although the residential

property sector is slower now, new

house sales recently showed signs of

life, as buyers see prices becoming

attractive. House price declinewill ease as inventory is taken up,

but government remains adamant

in retaining ongoing restrictive

measures.

Local government’s efforts, in

boosting domestic consumption

and foreign business set-up, have

protected the commercial property

sector. Shortly, the commercial

sector will have the greater share of

the property market in Guangzhou,

which has been accustomed to beingdominated by the residential sector.

Recent statistics have revealed

agging economic growth and

abating ination, as gauged by CPI

gures, which receded to 3.4% in

April 2012, from 5.4% in 2011. There

are signs that the government is

gearing up for renewed monetary

easing. Banks’ Reserve Requirement

Ratios have been lowered from the

peak several times, alongside interest

rate cuts. There are also government

proposals to moderately beef-up

xed asset investment, including

infrastructure and subsidised

housing.

Looking ahead, economic growth is

likely to remain promising, though

not as strong as before. Construction

activities should cushion the

downturn of residential property.

Tender prices are expected to be

at or to rise moderately in the nextcouple of quarters.

MACAU

According to the Statistics and

Census Service of the Macau

government, Gross Domestic Product

for the rst quarter of 2012 rose by

18.4% year-on-year in real terms,

compared with the 17.5% growth

in the fourth quarter of 2011. The

unemployment rate for February to

April 2012 was 2%, down by 0.7 per

cent over the previous period. The

average daily wage of construction

workers was MOP563 in the rst

quarter of 2012, a decrease of 3.4%

on a quarter-to-quarter basis. The

average daily wages of skilled andsemi-skilled workers decreased

by 4.2% to MOP568 and that of

unskilled workers increased by 1.9%

to MOP373.

Construction activities have been

picking up since 2010. There was a

total of 351,501m2 of gross oor area

granted construction approvals in

2011, which was a signicant increase

compared with the 95,265m2 of gross

oor area approved in 2010.

Looking ahead, several casino

operators have announced plans to

commence construction of the next

phases of casino and resort projects

this year. The aggregate oor area

of these projects will far exceed

2 million square metres. As there is

a shortage of skilled construction

workers in Macau and there are

restrictions on importing labour, the

rise in construction costs is expected

to continue in the near future.



5

INTERNATIONALREPORT

SHANGHAI

A total of RMB 61.3 billion was

invested in Shanghai’s property

developments between January

and April 2012, which is a 0.1% drop

compared to the same period last

year. It represents 50.1% of the overall

xed asset investment.

Of the total investment in property

developments, some RMB 38.64

billion or 63% was invested in the

residential sector, a 0.8% increase

compared to the same period last

year. Of this, RMB 7.25 billion, or

11.8%, was invested in the commercialsector, a 19.1% increase compared

to the same period last year, while

RMB5.05 billion or 8.2% was invested

in the ofce sector, a decrease of

14.2%. Between January and April

2012, a total oor area of 9,481,500m2

commenced construction, which was

a drop of 24.4% compared to the

same period last year. Within this,

about 5,777,800m2 was for residential

properties, a drop of 33.9%.

As the policy of controlling propertyprices is still in place, the Shanghai

property market has been following

the guideline of "Three Priorities" -

priority for local residents, priority

for ordinary quality properties, and

priority for dwelling only. The result

has been a drop in the total area of

newly commenced projects, and a

rise in the total completed oor area.

Investment in commercial properties

is still on the rise, but the sale of all

types of properties has continued

trending downwards. Consequently,

construction costs in Shanghai are

not expected to show any signicant

increase in the coming months.

SHENzHEN

Shenzhen is transforming into the

business hub of southern China.

In recent years most of the new

developments in Shenzhen have

been ofce and retail, or mega-scale

mixed use developments comprising

hotels, serviced apartments,

convention centres and a small

amount of residential units. As

the central government's cooling

down measures have pin pointed

residential development, Shenzhen's

construction activities have not been

overly affected.

While local demand for labour and

plant has not been affected by the

government’s monetary policy, the

prices of major building materials

such as steel, aluminium, copper

etc. have been impacted by the

decrease in demand in the global

market. The combined effect has

been a moderate range of movement

in tender prices, with this trend

expected to continue into the near

future.

MARKETINTELLIGENCE

ASIA



Construction in Shanghai, China



7

INTERNATIONALREPORT

SINGAPORE

With the Eurozone’s debt crisis

showing no signs of abating and

the sluggish rate of recovery of the

US economy, Asian export markets

will be similarly affected by the

slowdown in the global economy. It

remains to be seen whether current

levels of growth can be maintained in

the long-term.

Singapore rebounded from a 2.5%

contraction in the previous quarter

to 10% quarter on quarter (QoQ)

GDP growth in the rst quarter of

2012. However, generally Singapore’seconomy grew by 1.6% year on year

(YoY), a drop from the 3.6% annual

growth of the previous quarter. The

manufacturing sector grew by 19.8%

QoQ, attributed mainly to higher

production levels across all key

manufacturing clusters, particularly in

electronics and precision engineering.

Despite the present global downside

risks, Singapore’s Ministry of Trade

and Industry maintained its economic

growth forecast of 1% to 3% for 2012.

Property prices fell by 0.1% QoQ,

compared to an overall 0.2%

quarterly rise in the previous quarter.

This is the rst fall in prices since

2Q2009. A total of 6,903 private

residential units were launched in the

rst quarter of 2012, compared to just

4,105 units in 4Q 2011. A surge in sale

of ‘shoe-box’ units (smaller than

50m2) was observed with 1,764 units

sold, accounting for 27% of new sales

in 1Q 2012.

Ofce property prices remained

at, while shop prices posted

0.2% quarterly increase. Industrial

properties prices soared 7.3%,

indicating continued investment

interest for commercial and industrial

properties.

The Construction sector grew 7.7%

YoY, with impressive 32.1% quarterly

growth, an improvement from the

2.2% contraction in 4Q2011. This

was due largely to an increase in

construction activities in residential

and institutional sectors. However,

there was a decline of 29% in

construction demand in 1Q2012, QoQ,

with public demand falling by 23%

and private demand by 34%. Notably,

public and private residential demand

fell by 40% and 35% respectively

and private commercial demand

fell 77%. An encouraging sign onthe other hand is a 51% increase in

public industrial demand in 1Q2012,

compared to the previous quarter.

Construction demand appears set to

increase in the next few quarters.

Overall, Singapore’s building

tendering market has remained

competitive in the last quarter. The

impact of the rise in labour cost due

to increased levies, reduced Man-

Year Entitlement (MYE) and shortage

of skilled workers is being felt, with

greater pressure on tender prices.

Global uncertainty has impacted on

global commodity prices, causing

marginal falls in April following

an upward trend in the rst three

months of 2012.

Rider Levett Bucknall’s Tender Price

Index posted a 1.1% quarterly rise for

1Q2012. In view of more public sector

projects coming on-line from the

second half of 2012, coupled with

potentially higher commodity prices,

building tender prices could trend

higher towards the end of 2012.

MARKETINTELLIGENCE

ASIA



Cityscape of Jakarta



9

INTERNATIONALREPORT

MARKETINTELLIGENCE

ASIA FOCUS

CHENGDU

Chengdu is one of the most

important business hubs and

transportation centres in China.

Geographically, it is the most

convenient urban centre for transit

to Tibet and Xinjiang. Generally

speaking, the tier one cities in China

are usually considered to be Beijing,

Shanghai, Guangzhou and Shenzhen.

Chengdu is classied as the rst

of the 'tier 1.5' cities, and therefore

is usually ranked as the 5th most

important city in China in terms of

overall economic development and

nancial strength. In the rst quarterof 2012, Chengdu's GDP was 13.6%

higher than that

in 2011.

The rise of Chengdu's property

market and construction industry

was relatively late compared to

major coastal cities in China, but

the property market has become

more active in recent years, thanks

to the central government’s "Go

West" policy. Fixed investment in

infrastructure grew by 30% year-on-

year (YoY) in the rst quarter of 2012.

The four tier 1 cities aside, Chengdu

has the largest stock of Grade A

ofce space in China. In the next two

years, the growth of Grade A ofce

stock in Chengdu is forecast to be

about 2 million square metres, which

is the biggest among cities in Central

and Western China.

In 2007, Chengdu was stated by

the World Bank to be “a Benchmark

city for investment environment in

inland China”.

While some of the more developed

cities in China have been affected by

the impact of macroeconomic control

policies of the central government,

the construction industry of Chengdu

has not been adversely affected.

On the contrary, the property market

has become increasingly important

since 2010 as it has attracted not

just international developers, butalso 'local' developers from all over

China.

Currently the performance of both

public and private construction

projects has been very strong and

there is great potential for the

construction industry’s continued

expansion in Chengdu.



10

INTERNATIONALREPORT

MARKETINTELLIGENCE

ASIA FOCUS

JAKARTA

The Governor of Bank Indonesia (the

central bank), Darmin Nasution, has

forecast Indonesia’s 2012 economic

growth to be below the government’s

target of 6.7%, set in the 2011 draft

state budget. This is primarily due

to the slowdown in global economic

performance as a result of the

nancial crises in the United States

and Europe.

The Bureau of Statistics noted that

economic growth of 6.3% in 1Q2012

was driven by improvement in the

transportation, communication,trade and services, and construction

sectors. National construction

growth in 1Q2012 stood at 7.3%, with

spending of IDR40.5trillion, a rise of

0.5% compared to the same period

last year.

Infrastructure has been a persistent

hurdle in improving economic

efciency in the country as well

as in holding back foreign direct

investment. The government has

passed the land acquisition law, forwhich Fitch Ratings has raised the

country’s sovereign debt rating,

and as a consequence of which

Indonesia should have wider access

to investors’ funds. This is in line

with the national efforts to speed

up infrastructure development for

seaports, airports and toll roads,

which Finance Minister Agus

Martowardojo predicts will support

Indonesia’s projected 7 to 7.7%

growth in 2014.

In line with national planning,

Indonesia is expecting to deliver

over US$150 billion in infrastructure

projects over the next ve years.

For this, the government had

intended to cut the fuel price

subsidy to free-up some funding

for infrastructure developments.

This planned subsidy cut was

scheduled to kick in from April

2012, but was postponed for further

review. Nonetheless, prices in theconstruction industry started to

increase in anticipation of this

subsidy cut.

Some infrastructure works are

already underway, notably the Sunda

Strait Bridge, the country’s rst super

express train, the construction of a

new railway in southern Sumatra, new

toll roads, airports and many other

projects.

Conrmation of increasing foreign

interest in Indonesia is evidenced

by the high passenger growth rates

recorded by Soekarno-Hatta Airport

in recent months, establishing it as

one of the 12 busiest airports in the

world.

Despite the high levels of foreign

interest, housing pricing has not

increased much in ination adjusted

terms. Such damping of prices is due

in part to the market over-supply of

the past few years and to the high

mortgage interest rates, high tax

rates, red tape, and the like.

Although the global slowdown has

affected the Indonesian economy

to some extent, the governmenthas taken positive steps to make

available funds allocation to ensure

an attractive investment climate that

would draw in foreign investors. The

slow growth and low interest rates in

developed countries since 2008 have

pushed funds to emerging markets

in recent years, not least Indonesia.

With increasing investment by both

local and foreign investors, long-term

growth in Indonesia now appears to

be even more assured.



11

INTERNATIONALREPORT

MARKETINTELLIGENCE

ASIA FOCUS

MANILA

The Philippine construction

industry anticipates an inux of

opportunities both in public and

private construction, with Php170

billion worth of projects to be

tendered this year, combined with a

240 kilometre road network planned

by the Philippine government. These

projects are designed to boost the

country's performance on specic

indicators in the construction

industry.

The government has already

identied several Public-PrivatePartnership (PPP) Projects up for

bidding this year, while the PPP

projects for school buildings have

already been published for tender.

With this high level of construction

activity, the capacity of all facets of

the industry may be stretched.

The construction of high rise

residential condominiums by major

developers and owners is also in full

ow across the entire region, from

Manila to Cebu.

The labour and material prices

for ready-mix concrete, steel and

aluminum products increased

minimally over Q1 2012. However, with

the rolling back of oil prices during

the second quarter, we anticipate

some downward pressure on the

cost of construction materials.

The Philippine foreign currency

exchange has experienced minimal

changes outside the normal ranges

of uctuation of around Php 42.00 to

Php 43.50 per US$.

While the average GDP growth

across the ASEAN countries slowed

last year to 4,8% from 6.9%, the

Philippine economy grew at a

manageable 3.7%. Though posting

a lower rate of growth, the country

was able to withstand the weak

global demand derived from external

economic tribulations.

Despite the fact that government

spending on infrastructure was

belatedly pushed last year, and

while shing production and exports

have consistently declined, resilient

performance in the services sector

and strong consumer spending

compensated for the year’s otherwise

sluggish performance. Specically,

services under the Real Estate

sub-sector grew annually by 17.0%,

while Renting and Other Business

Activities increased by 9.6%. Last

year, the services sector contributed

more than 40% of the country’s grossnational income, which reached over

Php7.7 trillion (+2.6%).

Meanwhile, consumer spending

increased by 6.1% in 4Q 2011. Ination

further contracted to 2.7%, pushing

lending rates to their lowest levels of

between 5%-8%.

The economic outlook from most

multinational institutions is for the

Philippine economy to grow between

3.5% and 4.0% in 2012.



12

INTERNATIONALREPORT

MUMBAI

The global turmoil, along with

internal policy stagnation, has forced

India to revise its growth forecast

to 5 to 6% of GDP, against targeted

growth of 7-7.5%. With higher

ination in food and commodities,

Banks have so far resisted reducing

higher interest rates, leading to a

quasi slow-down in the real estate

sector in India. With International

investments being stagnant at

present, owners and developers have

reduced their expansion programmes

due to large inventory of available

space in metropolitan cities acrossIndia. Higher taxation in the recent

budget, along with hikes in petroleum

products and changed development

rules in Mumbai, have once again

spiked the input costs for developers,

leading to pressure on gross margins.

In the short to medium term, the

market appears to be adopting a

cautionary approach in general.

Recently, properties located in select

metropolitan areas have commanded

an investment premium. With the

right price and product mix and

credible developers, investors are

ready to take more risk. Bulk discount

schemes have been oated privately,

and have lead to ‘price correction’

in select micro-market segments.

Investors, taking advantage of the

poor capital position of developers,

have been successful in negotiating

favourable deals with additional

amenities and nancing options.

However the ‘Rehabilitation /Real Estate Regularity Bill’, which

is pending before Parliament,

may change the rulebook of the

developers and it remains to be seen

how the market moves with the

proposed new laws.

The residential sector is doing well

in certain market sub-sectors such

as Bangalore, Chennai and Pune,

However, some metropolitan cities

such as Mumbai Metropolitan Region

and Delhi National Capital Regionhave seen reduced activity, possibly

due to higher overall pricing levels

of properties and elevated interest

rates. A new phenomenon for the

commercial real estate sector is

that of high vacancy rates and large

pipelines, accompanied by rentals

increases. This seems to suggest a

move toward preferred locational

outcomes. For non-CBD locations,

rentals are expected to be stagnant

in the near to short term. Built-to-

Suit facilities for IT companies have

staged a comeback, while Special

Economic Zones have encountered

headwinds due to difcult marketconditions. It is expected that, after

new policy decisions on foreign

direct investments in retail and

industrial sectors, there could be

some upswing in the ofng. However,

the retail sector in general will

continue to expand in Tier I to Tier

III cities and remains a sector which

could perform strongly in the next

few years. The retail sector is also

helped by exible lease terms and

revenue share models by developers,which make certain destination more

appealing to consumers as well as

to retailers.

In the next 6 to 8 months, the

construction sector could see

increased input costs, as well as

strong market-resistance to the gross

prot margins of the developers

and contractors. There could be

the possibility of underbidding by

contractors to pick up projects at

loss/no prots levels as well. Overall,the real estate sector may witness

slower growth, depending on the

nancial stability and the condition of

the overall Indian economy. As ever,

developers with the right project/

product mix, the right location

and attractive pricing will receive

attention from investors. With strong

economic fundamentals and an

expanding, youthful population, the

long term market view seems

to be positive.

MARKETINTELLIGENCE

ASIA FOCUS



13

INTERNATIONALREPORT

PHOENIX

Arizona's economic recovery

continues to move at a slow pace

in 2012. Following three straight

years of increases, the State's overall

unemployment rate has reduced from

9% in late 2011 to 8.2% in mid 2012.

However, unemployment within the

construction industry remains high,

at over 10%.

The real estate and housing markets

in Arizona, weakened severely since

2008, have started to show some

signs of modest improvement, with

permits and construction of newsingle family and multi-family housing

on the increase. The average vacancy

rate for the 1st Quarter 2012 for

Metropolitan Phoenix was 8.48%, the

lowest rst quarter rate since 2007.

Sustained improvements throughout

the remainder of 2012 may nally

end ve consecutive years of decline

within the residential sector.

In the ofce market, the absorption

rate has also improved recently.

However, the balance betweenabsorption and vacancy is still askew,

resulting in few multi-tenant ofce

buildings under construction and

no signicant speculative multi-

tenant building expected for some

time. The industrial market has seen

consecutive quarters of positive

absorption which, combined with

decreased vacancy, has resulted in

signicantly increased demand for

construction of industrial facilities

across the Phoenix Metro area.

Arizona’s leading economic

indicators are residential and

commercial construction. As the

latter closely follows the performance

of the former, recent improvements

within the residential sector offer

some reasons for optimism that the

much anticipated economic recovery

may gather some momentum over

the remainder of 2012 and beyond.

HONOLULU

Hawaii’s economy is on a path to

recovery, as its major economic

indicators improved during the rst

quarter of 2012. Within the tourism

sector, visitor arrivals have gone up

by 8.6% as an inux of domestic and

international trafc moves through

the islands. Visitor expenditures have

also increased signicantly, going

up by 13.5%. Tourism has beneted

the economy in Hawaii as more

individuals are nding employment

within the hospitality industry.

Increased tourism will bring the need

for more visitor-related constructionimprovements over the next year and

the General Excise Tax Base for this

year is forecast to be 9.6% more than

last year at approx. 6.4 billion.

The construction industry outlook is

looking brighter as the year goes by,

with a forecast 2.1% increase in the

number of construction jobs this year

in comparison to last year, and an

8.8% increase predicted between this

year and next year. These changes

can be attributed to the ourishing

high-rise condos, retail, and resort

development projects in the Hawaii

construction industry. Hotels

owners are beginning to reinvest in

upgrades to their properties. With

tourism numbers up, many hotels

are continuing with renovations

after having deferred plans over the

last few years due to the economic

downturn. Additionally, the State

has been pushing hard to kick off

the Rail Transit Project in Honolulu.The start of the rail project would

provide increased opportunities for

the construction sector and create

additional employment opportunities

for many contractors.

MARKETINTELLIGENCE

USA

uSa CONSTRuCTION


NEW YORK 155

HONOLULU 141

SAN FRANCISCO 137

BOSTON 133

LOS ANGELES 125

WASHINGTON 124

SEATTLE 106

PORTLAND 97

LAS VEGAS 93

PHOENIX 93DENVER 93



Waikiki, Honolulu



15

INTERNATIONALREPORT

LAS VEGAS

Construction activity in Las Vegas

remains slow in 2012, although there

has been an interesting area of

improvement with land sales up 38%

from a year ago and an increase in

the price paid per acre.

Residential building permits have also

increased signicantly from a year

ago, although there is still a potential

damping effect from bank-owned

homes that have yet to be released

onto the residential market.

Demand for new commercial

construction is soft. However, there

does seem to be an increase in

renovation work as the hospitality

industry starts to catch up on work

that was deferred during the worst

part of the recession.

Vacancy rates within the commercial

sector have changed little and remain

high (25.2% ofces, 10.5% retail and

19% industrial), although there have

been some notable new commercial

construction projects includingSkyvue, Project Linq and Zappos

Head Ofce. With construction price

escalation remaining at low levels, it

is a good time for Owners to build,

with Contractors continuing to

bid for work at competitive prices.

Overall levels of competition for

construction work are also keeping

fees low.

MARKETINTELLIGENCE

USA

Local unemployment remains at a

high 12.3%, after hitting a peak of

12.7% in January. Many construction-

related rms continue to operate on

skeleton staff while diversifying in

order to remain competitive and also

focusing on other States or overseas

for opportunities. The remainder

of 2012 will continue as it did in

2011 with very slow growth in the

commercial construction sector and

modest growth within the residential

sector.



16

INTERNATIONALREPORT

BIRMINGHAM

Ongoing fears surrounding the

Eurozone crisis continue to impact

construction with £5.4bn less

work than 2011, nationally. This will

adversely affect Birmingham, as

investors continue to view London as

a safer haven.

Tender prices edged up in the rst

quarter, but are unlikely to continue

as declining workload may see prices

slip back as the year progresses.

Analysis of tender returns shows

that prices dipped by 1% in the last

quarter 2011, leaving prices 1% lowerthan a year earlier. Preliminaries costs

have bottomed out, typically at 9-13%

on large projects, as contractors

are unable to trim further and still

maintain an acceptable service level.

Building costs, in terms of tender

pricing, rose 3.2% in the year to the

rst quarter of 2012. Employment

costs are expected to rise this year,

resulting in a 3.5% increase in the

tender price index over the next 12

months. Retail price ination fellback to 3.7% in February. Further

reductions are anticipated as

consumer price ination falls back

towards the government target.

The Birmingham market has seen

slightly more pre-construction

activity, due in part to schemes

becoming more viable as costs

become lower, with activity on

the Gateway development taking

shape around New Street railway

station. Further activity around the

area is evident, particularly in the

refurbishment and remodelling of

ofce stock, with a number of hotel

conversion schemes currently in pre-

construction.

Nevertheless, 2012 is still expected to

be a tough year for all in the industry,

with total output expected to fall by

4.4%, and new work down by 6.9%.

At last year’s prices, that means

£5.4bn less work to ght over. Private

housing will be the only sector to

show any increase over 2012.

On a more positive note,

manufacturing is looking up: output

progressed steadily through 2011

and was nearly 6% higher than in

2010. However, the latest gure

for February 2012 showed a fall of1%, which it is hoped was a minor

correction.

With the West Midlands building

upon the Automotive sector,

activity is expected around the new

Jaguar Land Rover engine plant

planned on the i54 development

outside Wolverhampton, and further

investment by Tata at the JLR plant

in Solihull. Further developments to

support the 1st and 2nd tier suppliers

are expected to follow.

Retail sales gures have weakened

again, further administrations are

expected and rents are expected

to fall further in 2012. Shopping

Centre space completed this year

will be the lowest since the 1960s.

Smaller suburban shopping areas

are becoming a more attractive

proposition.

The public sector cuts will bite harder

now and business investment isexpected to weaken this year, with

the Ofce for Budget Responsibility

slashing its forecast from 7.7% in the

autumn to 0.7%. Credit conditions are

expected to tighten further over the

next few months.

MARKETINTELLIGENCE

EMEA

eMea CONSTRuCTION


LONDON 143

BRISTOL 118

MANCHESTER 114

BIRMINGHAM 110

DOHA 101

ABU DHABI 100

DUBAI 96

RIYADH 94

MUSCAT 86



17

INTERNATIONALREPORT

BRISTOL

The Bristol construction market

remains relatively at and we

anticipate a continuation of current

market conditions for the next

12 months.

Growth continues to be hampered

by a lack of available development

funding and a serious lack of

condence in the economy, as the

effects of the Government’s austerity

measures take hold. Signicant delay

in letting of Government funded

projects and initiatives has further

slowed the regional market.

Opportunities are identied, but

developers struggle to secure pre-

lets and purchasers, or to achieve

adequate margins to secure funding.

In common with other regions,

due to the deteriorating economy,

developers are again putting projects

on hold.

Government funding has continued

on projects which are deemed to

be essential/vital in their nature,however this has resulted in a series

of other schemes being postponed in

the medium term.

General house-building is at a ten

year low due to the lack of mortgage

availability and condence in the

market. The buy-to-let market is

showing no signs of recovery in

the short to medium term, and

accordingly, private residential

developers in the South West are

concentrating on saleable housing.

Government HCA funding has now

been secured and we anticipate

an increase in activity in the social

housing market over the coming

months.

In order to underpin the construction

industry, additional public sector

funding has been released by the

Government, for infrastructure,

housing and school projects, but

this will not have an impact on theindustry until the latter half of 2012.

LONDON

Construction output in the rst

quarter of the year dropped by 4.8%,

reecting a deteriorating nancial

outlook for the economy.

As the Eurozone nancial crisis

rumbles on, condence remains

fragile and the continuing lack of

available development funding has

seen the more active London market

starting to show signs of weakening

demand.

There continues to be strong

activity in the West End prime

residential sector, fuelled by a

wave of foreign investment, with a

number of conversions of existing

commercial ofces into high quality

residential and hotel buildings also

occurring. The new-build commercial

ofce sector remains subdued, as

developers seek to secure pre-lets on

major commercial schemes before

they proceed.

The demand for new or refurbished

commercial ofce space previouslyexpected as a result of a host of lease

breaks has not occurred, due to a

high degree of economic uncertainty

with the ofce development cycle

remaining predominantly in the

management of existing portfolios.

General house-building is currently

at a 10 year low, due to the lack of

mortgage availability and condence

in the market. However, signs of

recovery in the buy-to-let market,

fuelled by increased rental demand,are becoming evident.

Contractors have been steadily

reducing tender prices, with levels

of declared overhead and prot

reaching almost unsupportable levels.

A noticeable trend has been a far

more aggressive approach to project

durations.

Tender prices will remain depressed

for the rest of the year, with a

possible return to tender priceination from the beginning of

next year.

MARKETINTELLIGENCE

EMEA



18

INTERNATIONALREPORT

UNITED ARAB EMIRATES

eCONOMIC OVeRVIe

There is evidence of a gradual

recovery of the United Arab

Emirates (UAE) economy since

the GFC. Government intervention,

by means of signicant capital

injections, has seen the banking

sector strengthened and there

has been continual progress

made in restructuring the debt of

government-related companies. The

recovery of the non-hydrocarbon

economy looks set to continue,

backed by strong trade, tourism,

logistics and manufacturing - assistedalso by high oil prices. With limited

near-term potential for further

increases in real oil production,

overall UAE GDP growth is expected

to moderate to 2.3%. Downside

risks relate to a possible increase

in regional geopolitical tensions,

a potential decline in oil prices,

a renewed worsening of global

nancial conditions, and/or a marked

slowdown in Asia.

ReSIDeNTIaL CONSTRuCTION

Dubai has a signicant number of

units in this sector being completed

this year and continuing into the next

few years adding to the ongoing

oversupply. This comprises mainly

apartments and villas in the lower

to medium classes. Demand for

apartments and villas in up-market

asset classes remains strong due to

the increasing numbers of expatriates

coming into the UAE in the non-

hydrocarbon sectors of the economy.

Abu Dhabi has less of an oversupply

situation, but there is still a large

amount of stock coming onto the

market over the next few years.

NON-ReSIDeNTIaL CONSTRuCTION

There has been a marked increase inactivity levels in the Dubai markets

recently, with consultants and

contractors reporting a number

of new projects, but less so in

Abu Dhabi. Dubai has had little

development over the past few years,

but this appears to be changing,

with developers looking into various

projects in all sectors. Abu Dhabi

has announced that a number of

stalled government-related projects

have been given the go ahead, but

the market is still yet to see the

results of these announcements. The

education sector is expanding, with

numerous initiatives in place around

the UAE. The tourism industry also

continues to expand, with new hotels

being launched on a regular basis.

The Dubai Airport Terminal 4 has

recently been awarded at a value of

US$871 million, as has the Abu Dhabi

Airport Mideld Terminal which is one

of the largest airport projects ever

conceived. This project has a valueof US$3,2 billion. Dubai is bidding

for the World Expo 2020 and if this

is successful, it will provide a major

boost to the UAE economy.

FuRTHeR COMMeNTS

Tender pricing has remained

extremely competitive, as a result

of the limited amount of new

construction work in the UAE. This

will continue until more work comes

on-stream in the next few years.

MARKETINTELLIGENCE

EMEA



19

INTERNATIONALREPORT

MARKETINTELLIGENCE

OCEANIA

ADELAIDE

The South Australian construction

market has become more

competitive across all sectors.

Previously, the Tier One contractors

have had a number of potential

projects available. However, the

following factors have seriously

impacted on these opportunities:

A tough SA Budget; A loss of SA

Government tax revenue and a credit

downgrade; Uncertainty regarding

the commencement date of BHP

Billiton’s multi-billion dollar Olympic

Dam project; Continued global

nancial uncertainty – proposedprojects delayed due to lack of

investor condence and; The Hastie

Group’s failure, impacting negatively

on both major contractors and

suppliers.

The SA Government has offered

further stamp duty concessions on

“off the plan” purchases on CBD

residential properties, which may or

may not be enough to entice nervous

investors or rst home buyers.

The small to mid sized general

contractors continue to struggle with

reduced opportunities and margins,

while for residential builders, the

picture is equally grim. The March

quarter volume of residential building

Work Done fell 3.4% (seasonally

adjusted) and is likely to remain

subdued, with the volume of

approvals dipping 11.3% during the

March quarter.

Some major projects, such

as the New Royal Adelaide

Hospital ($1.7Bn), Adelaide Oval

Redevelopment ($535M) and the

Adelaide Convention Centre ($350M)

will help support the Tier One market.

However, these projects already

have head-contractors and sub-

contractors committed and the lack

of new major projects is not lling

the remaining void.

Further opportunities still exist inthe Riverbank Precinct and BHP

Billiton’s Olympic Dam. Until then, the

industry (and the State) is holding its

collective breath.

BRISBANE

Engineering work increased by

approximately 50% in 2011, to nearly

$30bn. However building work

was $15bn, some 25% down from

the 2008 peak. Despite overall

construction volume increase of $5bn

since 2008, there is signicant excess

capacity in the market, resulting in

the most competitive conditions

since late 2005.

Queensland’s March quarter volume

of residential building Work Done

rose a seasonally adjusted 6.0%

overall with new houses up 14.4% andapartments down 8.5%. A 33.6% drop

in the volume of apartment approvals

suggests that the effects of two

consecutive interest rate cuts have

yet to materialise, and, other than on

the Gold Coast, there is no obvious

over-supply of apartments.

However, the retail sector may

benet from the interest rate cuts

with the value of approvals gures

having surged 139.6% in the March

quarter. The Indooroopilly ShoppingCentre redevelopment could be

the rst of a number of signicant

projects.

Queensland’s new government

has shelved several major projects,

including Cairns Performing Arts

Precinct and the Bowen Hills ofce

building for Queensland Health. Also,

Suncorp’s Southbank consolidation

is not now proceeding. However, the

ATO building is under construction

and Bank of Queensland is relocating

to a new building at Newstead. The

announcement of the successful

bidder for the $2bn Sunshine Coast

University Hospital is expected

soon, with hopes that construction

commencement in early 2013 will

act as a catalyst for development in

Kawana and Sunshine Coast Regions.

Looking forward, as total volume

of approvals for the March

quarter posted a fall of 8.4%, a fullresurgence in workload gures is

yet to eventuate and tender pricing

should remain competitive.

OCeaNIa CONSTRuCTION


PERTH 119

DARWIN 118

SYDNEY 114

CANBERRA 108

MELBOURNE 108

ADELAIDE 106

WELLINGTON 100

TOWNSVILLE 99

OTAGO 99

CHRISTCHURCH 97

AUCKLAND 94

BRISBANE 90



Melbourne, Australia



21

INTERNATIONALREPORT

MARKETINTELLIGENCE

OCEANIA

CANBERRA

The Canberra construction market

continues to exhibit weakening

conditions and there is little

evidence that this trajectory will

turn around this year. Construction

activity is signicantly lower in

the past 12 months than that seen

each year from 2008 onwards. As

a consequence, there has been

a further easing of tender prices

over the last quarter and a further

tightening of margins and overheads.

Capital works expenditure remains

subdued at both Local and Federalgovernment levels, as both tiers

of government attempt to reign in

spending and reduce existing budget

decits.

Residential work done volumes

edged up a seasonally adjusted 3.1%

QoQ in the March quarter however

apartment work done volumes

fell 3.8%. A signicant seasonally

adjusted 44.8% drop in the value

of residential building approvals for

the March quarter indicated that acontinuation of soft conditions could

be prevalent in the short-term.

Despite strong non-residential

building approval gures in the

March quarter that suggest workload

increases in the near term, looking

forward, the outlook is less bright

with developers being extremely

cautious.

With limited new opportunities on

the horizon in the near term andinsufcient new projects to satisfy

existing resources, price discounting

is widespread and in many instances,

unsustainably so. There have been

a number of reputable contractors

and subcontractors that have found

themselves in nancial difculty in

the last six months as a result of such

commercial decisions. Escalation

will dip into negative territory for

2012, and not until mid-next year

will we see some signicant capitalworks investment into the Canberra

economy.

DARWIN

The Darwin construction market

remains buoyant at the moment,

with major civil works having started

on the Inpex gas project, the Marine

Supply Base, the NT Secure Facilities

and other infrastructure and housing

subdivision projects. This is having

the effect of rapid absorption of

resources in the civil engineering and

infrastructure sectors of the market.

Construction activity in other sectors

is set for expansion, with optimism

present but demand still soft,

resulting in tight lending policiesbeing applied by nance institutions.

Demand for residential

accommodation is trending upwards,

leading to very low vacancy rates

and rising rents until such time as

supply starts to pick up again. The

volume of residential building Work

Done in the March quarter improved

for the second consecutive quarter,

posting a 0.1% year on year growth.

A number of residential projects are

being approved and commencingin order to mitigate the current

shortage of accommodation. This

has been particularly exacerbated by

the major civil projects mentioned,

which will see signicant inuxes of

labour requiring accommodation and

will have a knock-on effect on other

industry sectors.

The volume of non-residential

building Work Done posted a 52.4%

year on year increase in the March

quarter. Approval volume was down

49.3% year on year, showing some

signs of stabilisation in the non-

residential market.

The industrial sector is quite active,

with a number of projects starting

and under way to accommodate

the emerging and lucrative oil and

gas industries. Commercial ofce

accommodation is still soft, with a

few projects in the planning stage

and set for delivery during the courseof the next year.



22

INTERNATIONALREPORT

MARKETINTELLIGENCE

OCEANIA

MELBOURNE

The Melbourne construction market

continues to track sideways, unable

to serve up the quantity of large

projects tier one contractors have

become accustomed to dining upon

in recent years. While some continue

to devour a healthy workload of

on-going major projects, others are

having to settle for smaller morsels

to suppress their appetites. This is in

turn rendering the small-to-medium

sized markets extremely competitive.

Residential construction remains at

as the total volume of Work Doneslipped a seasonally adjusted 1.8%

quarter on quarter (QoQ) in the

March quarter with both housing and

apartment sectors posting slight falls.

While housing looks likely to continue

this trend, there was a 53.3% QoQ

spike in the value of apartment

approvals in the March quarter,

providing some signs of optimism.

Non-residential construction

continues to decline posting an

18.7% QoQ (seasonally adjusted) fallin the volume of Work Done in the

March quarter. However, there are

still a few ofce projects expected to

commence in the 2nd half 2012 and

also a number of large retail projects

in the pipeline which may generate

some momentum.

As has been the case for the

previous two years, access to nance

continues to stymie any sustained

recovery in the Melbourne market.

While smaller sub-$20M projects

are in abundance, major projects are

scarce as nanciers await a resolution

to the global economic turmoil.

With such a contrast between the

‘haves’ and ‘have nots’ among tier

one builders, wide tender ranges are

evident. Highly competitive tendering

by those eager for workload

continues with price escalation for

2012 expected to remain at.

PERTH

The construction market in Perth

remains extremely "tight", with

ercely competitive tendering for

smaller and mid level projects. There

are signicant numbers of larger

projects either under construction or

in documentation stage and so the

sub-contractors and contractors who

ordinarily undertake larger projects

are slightly better off.

The State's economy and general

condence levels remain fairly

buoyant, although still inuenced

by the general world economy andChina in particular. The impact of the

Carbon Tax on construction prices

will be closely scrutinised.

Although it appears that the previous

limitations on funding availability and

lending criteria are beginning to relax

slightly, there is limited evidence of

increasing speculative commercial

activity. The volume of non-

residential construction Work Done

posted a 9.4% seasonally adjusted

quarter on quarter increase in theMarch quarter. Meanwhile, volume of

approvals for the same period was

down 37.4%. Where developers are

building facilities for their own use, it

remains a very advantageous market.

The State Government 's investment

programme in health, justice and

civil infrastructure continues, with a

number of projects moving into the

post-award construction stage.

The construction of new dwellingsremains below historic activity

levels, with its volume of residential

construction work done dipping 7.7%

seasonally adjusted in the March

Quarter. However, strong approvals

volume gures in the apartment

sector in the March quarter suggests

that it is expected to revive due

to continuing positive population

growth and declining availability of

rental accommodation.

Construction costs have remained

relatively static now for over four

years. There is likely to be some cost

increase during 2012 through general

price pressures and the impact of the

Carbon Tax.



23

INTERNATIONALREPORT

MARKETINTELLIGENCE

OCEANIA

SYDNEY

The prevailing sentiment in the

Sydney Construction market is

one of extreme concern due to the

decreasing future workload and the

nancial capacity of both contractors

and sub-contractors to full their

obligations.

The past quarter has seen four

long-standing contractors receive

extensive media coverage of nancial

difculties and the subsequent

closure of three of these companies,

accompanied by the appointment of

an administrator. Building contractorsalso report an increase in the number

of sub-contractors seeking nancial

assistance.

The nancial stability of industry

participants has become a

major issue amongst clients and

contractors. The risk of a contractor

entering liquidation part-way

through a contract is self-evident

and clients are anxious to avoid the

nancial, delay, quality and warranty

problems that arise in such instances.We expect that companies with a

relatively strong balance sheet will,

in the short term, receive increased

opportunities to secure new work.

The total volume of Building

Approvals for the rst quarter

2012, as collated by the ABS, fell

approximately three per cent from

the last quarter of 2011. These falls

conrm predictions of declining new

work opportunities. Recent forecasts

expect the non-residential sector

to show little improvement for the

remainder of 2012.

Owing to the prolonged period of

reduced residential activity and the

resulting shortfall of new residential

accommodation, buyer demand for

residential property under $600k

continues to be a sector that offers

opportunities. New developments of

this type report reasonable pre-sales

activity and offer future prospectsfor developers and contractors.

Contractors who previously worked

in this sector are now likely to return,

due to the increased possibility of

work opportunities compared to

other sectors.

The market remains extremely

competitive. Discounting has not

diminished. Rumours abound of

further increased discounts of up to

5% being offered to secure new work.

We can see no reasons for these

discounts to disappear in the short

term, other than on complex projects

where risk pricing is evident.

Price rises in the past quarter have

been minimal, excepting concrete

and reinforcing steel, recording price

increases of between four and seven

per cent respectively.

The combined conditions of a

competitive market place and the

threat of action from The Australian

Competition and Consumer

Commission for unlawful price

increases due to the Carbon PricingMechanism have mitigated any

signicant price increases from

suppliers at the present time.

Consultants and contractors continue

to shed staff due to decreasing

workload and a lack of condence

for the future. All sectors continue

to seek an event that will break the

cycle of pessimism.

It is hoped that the decrease in cash

rates by The Reserve Bank, togetherwith the prospect of increased

capital expenditure on much-

needed infrastructure and facilities

will provide the spark to kindle

condence.

Within its budget announced on June

12, the NSW Government revealed

that it is attempting to boost the

construction sector. If successful, it

could re-ignite the industry…and not

a moment too soon.



Auckland, New Zealand



25

INTERNATIONALREPORT

MARKETINTELLIGENCE

OCEANIA

AUCKLAND

The New Zealand economy remains

at, with emphasis on a gradual but

sustainable recovery. De-leveraging

by both households and Government

continues and economic growth for

2012 is forecast to be modest, with

interest rates not expected to be

raised for some months or possibly

years.

Residential construction activity

remains weak, however there are

signs of recovery driven by a tight

Auckland housing supply and

remediation work associated withleaky buildings.

Non-residential building activity

has been similarly weak, with a very

modest 1.4% increase in the value

of building consents nationally, to

April 2012, and Auckland remaining

essentially at. Activity in the key

sectors of retail, commercial and

industrial appears to have stabilised

and the risk of further falls in these

sectors has waned.

With reducing public spend and the

remaining difculties in private sector

investment, there is an insufcient

number of signicant projects on

the horizon in Auckland to suggest

any real improvement in the short to

medium-term.

Auckland’s tender market is ercely

competitive, as it has been for

some time. There is little pressure

toward cost increases and with the

limited workload, margins remain

extremely tight. To date, there have

been no Canterbury-Earthquake-

related increases in tender pricing or

builders’ costs.

Moving forward, we expect current

conditions to remain for the balance

of 2012, with the optimism that

conditions will improve mid-to-late

next year.



Wellington, New Zealand



27

INTERNATIONALREPORT

CHRISTCHURCH

Christchurch continues to await the

full impact of the reconstruction

on the construction industry. The

residential repair programme is well

underway and associated tender

price increases in certain nishing

trades are owing through to the

commercial sector. In addition a

number of structural trades are

exhibiting signs of increases as the

relatively small local market responds

to demand.

There are now a number of

commercial projects underway ofvarious types and sizes, providing

early indications of the likely forward

workload. In addition, there are

numerous schemes at concept

stage in the market, competing for

displaced tenants to relocate back

to the CBD and its environs. Tenants’

commitment to these landlords will

likely dictate the timing of such

projects.

Of current particular interest to

the Christchurch constructionand property industries is the

Christchurch Central Development

Unit (CCDU) and the eagerly

awaited delivery of the Blueprint

for Christchurch’s central city

development.

The blueprint for the central city,

presented publicly on 27 July

2012, is intended to provide a clear

direction for implementing the

Recovery Plan for Christchurch. It

will provide certainty for the location

and development of anchor projects

and precincts within the centre of

Christchurch city. It is considered that

this will give condence to property

owners to move forward.

MARKETINTELLIGENCE

OCEANIA

WELLINGTON

The local market conditions remain

largely unchanged from the previous

quarter. Both the residential and

non-residential sectors are at or very

close to historic lows, given current

consent values and general forward

outlook for the remainder of 2012.

Questions around insurance, seismic

strengthening and leaky home issues

are still at the forefront of discussion

in the Wellington market. Public

sector buildings are proceeding

into construction to remedy issues

with existing buildings, whilst theprivate sector has been a little slower

to react, given nancial funding

pressures.

The local residential market remains

subdued, with the likelihood of

improvement over the coming

months as historically low interest

rates and a competitive market make

it a very good time to invest and

develop. House prices remain static,

with some areas increasing slightly.

Sales of existing properties are stillmoving well, but at much lower

volumes than in previous years.

Non-residential construction is

also at a very low point, with

government spending being pared

back considerably from previous

years. The tender market has rmed-

up considerably over the past few

months and keen pricing is likely to

remain for the rest of this year and

into 2013.

The outlook for the Wellington region

is one of slow decline, without much

sign of improvement and it is evident

that we may not yet have seen

the bottom of the trough. Further

downward pressure is being applied

to government workforce numbers,

both central and local, and this will

feed through to the commercial,

residential and retail markets in the

near future.



28

INTERNATIONALREPORT

CONSTRUCTION RATES The following data represents estimates of current building costs in the respective market.Costs may vary as a consequence of factors such as site conditions, climatic conditions,

standards of specication, market conditions etc.

MARKET DATA

RaNge OF COST PeR M2 OF gROSS FLOOR aRea

OFFICeS ReTaIL

PReMIuM gRaDe a MaLL STRIP SHOPPINg

LOCaTION LO HIgH LO HIgH LO HIgH LO HIgH

aSIa

BEIJING RMB 7,250 12,000 6,750 10,300 8,050 12,300 7,000 11,000

CHENGDU RMB 6,900 11,200 6,350 9,300 7,150 11,050 6,600 10,500

GUANGzHOU RMB 7,000 11,100 6,450 9,700 7,950 11,400 6,900 10,300

HO CHI MINH CITY VND ('000) 21,810 31,370 18,600 23,280 NA NA NA NA

HONG KONG $HKD 17,500 25,900 15,400 20,900 18,200 23,100 15,500 20,300

JAKARTA RP ('000) 8,189 11,330 5,665 8,858 5,665 7,519 NA NA

MACAU MOP 13,900 19,800 12,200 17,000 15,000 18,600 12,700 16,300

MANILA PHP 32,100 43,800 25,900 35,300 27,200 31,300 20,600 23,100

MUMBAI INR 25,625 51,250 20,500 35,875 25,625 35,875 NA NA

SEOUL KRW ('000) 2,150 2,750 1,610 1,980 1,440 2,090 1,210 1,840

SHANGHAI RMB 7,350 11,850 6,750 10,250 8,050 12,450 7,050 11,200

SHENzHEN RMB 6,750 11,050 6,350 9,600 7,350 11,050 6,450 9,850

SINGAPORE $SGD 2,550 3,650 1,950 2,800 2,050 3,250 NA NA

TOKYO YEN ('000) 249 329 219 249 93 204 93 204

eMea

BIRMINGHAM GBP 1,770 2,330 1,500 2,330 2,530 3,550 810 1,520BRISTOL GBP 1,900 2,500 1,550 2,450 2,530 3,550 810 1,520

ABU DHABI AED 5,800 7,000 4,700 6,600 4,800 6,500 NA NA

DUBAI AED 5,600 6,900 4,600 6,400 4,600 6,300 NA NA

LONDON GBP 2,150 2,800 1,800 2,800 2,910 4,090 930 1,750

MANCHESTER GBP 1,770 2,330 1,500 2,330 2,530 3,550 810 1,520

OCeaNIa

ADELAIDE AUD 2,500 3,750 2,200 3,100 1,550 2,950 1,300 1,750

AUCKLAND NzD 2,750 3,500 2,100 3,200 1,100 1,800 1,200 1,400

BRISBANE AUD 2,500 3,850 2,000 3,000 2,150 2,950 1,050 1,550

CANBERRA AUD 2,930 3,810 2,380 3,000 1,960 2,780 1,030 1,730

CHRISTCHURCH NzD 3,500 4,500 3,000 4,000 1,500 2,000 NA NA

DARWIN AUD 2,645 3,870 2,160 3,520 1,420 2,255 960 1,815

MELBOURNE AUD 2,980 3,740 2,325 2,880 2,020 2,980 1,060 1,565

PERTH AUD 3,180 4,780 2,605 3,745 2,010 2,885 1,030 1,780

SYDNEY AUD 2,900 4,030 2,200 3,020 1,600 3,280 1,250 1,560

WELLINGTON NzD 2,800 3,200 2,200 2,500 1,300 1,800 NA NA

uSa

BOSTON USD 2,155 3,015 1,885 2,635 1,290 2,260 970 1,560

DENVER USD 1,505 2,420 1,075 1,615 860 1,400 700 1,345

HONOLULU USD 2,260 4,200 1,885 3,120 1,615 3,875 1,290 3,390

LAS VEGAS USD 1,505 3,070 1,130 2,045 1,240 5,165 700 1,560

LOS ANGELES USD 1,940 3,015 1,290 2,100 1,185 2,100 860 1,505

NEW YORK USD 2,205 3,765 1,940 2,905 1,505 2,690 1,240 1,720

PHOENIX USD 1,345 2,475 1,075 1,670 1,130 1,775 755 1,345

PORTLAND USD 1,775 2,260 1,240 1,720 1,185 2,100 970 1,400

SAN FRANCISCO USD 2,100 3,230 1,505 2,370 1,290 2,370 1,185 1,775

SEATTLE USD 1,775 2,205 1,240 1,720 1,240 2,155 1,025 1,455

WASHINGTON D.C. USD 1,885 2,585 1,400 1,990 1,025 2,045 805 1,455

NA: NOT AVAILABLE



29

INTERNATIONALREPORT

Rates are in national currency per square metre of Gross Floor Area except as follows:

Chinese cities, Hong Kong and Macau: Rates are per square metre of Construction Floor Area, measured to outer face of external walls.

Singapore: Rates are per square metre of Construction Floor Area, measured to outer face of external walls and inclusive of coveredbasement and above ground parking areas.

Chinese cities, Hong Kong, Macau and Singapore: All hotel rates are inclusive of Furniture Fittings and Equipment (FF&E).

RaNge OF COST PeR M2 OF gROSS FLOOR aRea

HOTeLS CaR PaRKINg INDuSTRIaL

aReHOuSe

ReSIDeNTIaL

MuLTI-STOReY5 STaR 3 STaR MuLTI STOReY BaSeMeNT

LO HIgH LO HIgH LO HIgH LO HIgH LO HIgH LO HIgH

aSIa

RMB 12,400 16,400 9,100 11,800 2,100 2,900 3,450 6,150 4,100 5,200 3,800 5,850

RMB 11,550 14,100 8,550 10,900 2,050 2,800 3,300 5,400 3,450 4,250 3,450 5,350

RMB 12,400 15,900 9,250 11,400 2,050 2,850 3,550 6,200 4,000 5,000 3,650 5,500

VND ('000) 28,360 34,730 21,320 27,580 7,950 11,880 16,350 22,340 5,450 8,250 13,970 21,180

$HKD 27,700 33,800 22,600 26,000 6,950 8,100 11,800 16,800 12,000 15,000 15,300 22,300

RP ('000) 11,639 14,935 8,910 10,300 2,730 3,605 3,605 5,047 3,811 4,635 5,768 9,270

MOP 22,300 27,100 17,900 21,300 NA NA 6,850 9,050 NA NA 9,750 16,500

PHP 52,900 60,900 42,700 48,300 14,500 16,700 15,900 18,300 17,200 20,300 26,900 47,900

INR 61,500 87,125 41,000 51,250 10,250 14,350 15,375 22,550 16,400 25,625 16,400 34,850

KRW ('000) 2,890 4,280 1,860 2,370 600 740 780 990 1,080 1,350 1,390 2,020

RMB 12,450 16,350 9,200 11,750 2,200 3,000 4,000 6,550 4,100 5,250 3,700 5,700

RMB 11,900 15,500 8,900 11,200 2,000 2,800 3,450 6,050 3,850 4,850 3,550 5,400

$SGD 4,050 5,350 3,100 3,500 650 1,250 1,850 2,050 1,050 1,450 1,900 3,000

YEN ('000) 378 501 281 455 94 125 249 314 94 180 NA NA

eMea

GBP 1,925 2,635 1,215 1,620 305 610 810 1,315 330 610 1,520 2,130GBP 2,100 2,800 1,250 1,750 450 750 850 1,400 330 610 1,520 2,130

AED 8,900 10,400 7,500 9,000 1,500 3,500 2,750 4,500 1,500 2,700 4,500 6,100

AED 8,800 10,250 7,300 8,900 1,500 3,500 2,750 4,500 1,300 2,600 4,300 5,900

GBP 2,300 3,100 1,500 2,000 375 750 975 1,600 400 725 1,800 2,500

GBP 1,925 2,635 1,215 1,620 305 610 810 1,315 330 610 1,520 2,130

OCeaNIa

AUD 3,400 4,300 2,450 3,300 625 1,050 1,100 1,400 600 1,100 2,100 3,400

NzD 3,450 3,800 2,800 3,200 550 750 1,000 1,500 450 700 2,100 2,900

AUD 3,200 4,300 2,500 3,600 600 900 1,100 2,000 600 1,000 2,100 3,050

AUD 3,610 4,220 2,630 3,670 670 920 890 1,240 620 960 2,430 3,450

NzD 3,500 4,000 2,800 3,200 800 1,200 1,600 2,000 700 1,000 NA NA

AUD 2,990 4,020 1,785 2,795 540 1,080 695 1,420 675 1,225 1,645 2,750

AUD 3,740 4,245 2,880 3,385 655 1,060 1,110 1,365 555 1,110 2,175 3,490

AUD 3,730 4,580 2,740 3,785 685 1,125 990 1,455 635 1,030 2,235 3,935

AUD 3,700 4,680 2,600 3,170 600 910 900 1,410 600 910 2,150 3,520

NzD 3,400 4,100 2,200 2,600 500 900 1,800 2,600 900 1,400 2,500 3,200

uSa

USD 2,690 4,305 1,720 2,690 645 970 860 1,185 755 1,075 1,455 2,370

USD 1,990 3,015 1,130 1,775 430 755 645 1,025 700 1,185 755 1,990

USD 4,090 5,920 2,530 4,305 700 1,075 1,075 2,045 1,130 1,775 1,505 3,500

USD 3,500 5,005 1,290 2,420 540 915 645 1,615 540 1,075 755 4,305

USD 2,690 4,200 1,830 2,635 645 1,025 915 1,400 755 1,290 1,455 2,315

USD 3,445 5,115 1,990 2,850 700 1,130 915 1,345 970 1,400 1,505 2,690

USD 2,260 3,765 1,185 1,720 430 700 645 1,075 590 1,075 860 1,990

USD 1,885 2,850 1,400 1,830 700 915 915 1,345 805 1,185 1,185 2,100

USD 2,850 4,415 2,045 2,800 755 1,075 970 1,505 860 1,400 1,560 2,475

USD 1,990 2,960 1,505 1,940 700 915 915 1,345 805 1,185 1,290 2,530

USD 2,475 4,035 1,615 2,475 590 860 805 1,075 755 1,075 1,075 1,990



30

INTERNATIONALREPORT

LOCaTION HOuSeS aPaRTMeNTS OFFICeS INDuSTRIaL ReTaIL HOTeL CIVIL

aMeRICaS

BOSTON

DENVER

HONOLULU

LAS VEGAS

LOS ANGELES

NEW YORK

PHOENIX

PORTLAND

SAN FRANCISCO

SEATTLE

WASHINGTON D.C.

aSIa

BEIJING

CHENGDU

GUANGzHOU

HO CHI MINH CITY

HONG KONG

JAKARTA

MACAU

MANILA

SEOUL

SHANGHAI

SHENzHENSINGAPORE

TOKYO

eMea

ABU DHABI

BRISTOL

DOHA

DUBAI

LONDON

MANCHESTER

SAUDI ARABIA

SHEFFIELD

OCeaNIa

ADELAIDE

AUCKLAND

BRISBANE

CANBERRA

CHRISTCHURCH

DARWIN

MELBOURNE

PERTH

SYDNEY

TOWNSVILLE NA

WELLINGTON

NA: NOT AVAILABLE

MARKET DATA



31

INTERNATIONALREPORT

MARKET DATA

PeaK gROTHZONe

PeaK DeCLINeZONePeaK ZONe

MID gROTHZONe

MID DeCLINeZONe

MID ZONe

TROugHgROTH ZONe

TROugH DeCLINeZONeTROugH ZONe

CONSTRUCTIONMARKET ACTIVITY

CYCLE MODEL

2

1

1

3

4

1

4

5 55

66

31

2 2 2

1

2

0%

10%

50%

80%

100%

HOUSES APARTMENTS OFFICES INDUSTRIAL RETAIL HOTEL CIV IL

20%

30%

60%

40%

90%

70%

MID ZONE PEAK ZONETROUGH ZONE

EMEA CONSTRUCTIONSECTOR BAROMETER

3

8

5

2

56

1

5

2

8

6

6

5

8

6

12 2

3

4

3

0%

10%

50%

80%

100%


20%

30%

60%

40%

90%

70%


ASIA CONSTRUCTIONSECTOR BAROMETER

11

7

1 1 1

2 2

1

10

9 9

10 10

3

1

0%

10%

50%

80%

100%


20%

30%

60%

40%

90%

70%


AMERICAS CONSTRUCTIONSECTOR BAROMETER

1 1

1

2

8

9 9 9

8

49

2

2 4

2

1 1

3

0%

10%

50%

80%

100%


20%

30%

60%

40%

90%

70%


OCEANIA CONSTRUCTIONSECTOR BAROMETER



32

INTERNATIONALREPORT

DeFINITIONS

GDP: Gross domestic product, constant prices (Annual percent change). Annual percentages of constant price GDP are year-on-year changes; the base year is country-specic.

GDP per Capita: Gross domestic product per capita, constant prices (National currency). GDP in constant national currency per person. Data derived by dividing constant priceGDP by total population.

PPP rate: Purchasing Power Parity rate of exchange. Rate against the International dollar (USD), which renders purchasing power identical to the international dollar.

Ination: Consumer Price Ination

Unemployment: Percentage of total workforce

NOTeS

Estimates after 2011.

Exchange rates are quoted as currency units per U.S. dollar

Sources: IMF and RLB

auSTRaLIa YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP 2.5 % 1.4 % 2.5 % 2.0 % 3.0 % 3.5 %

GDP PER CAPITA $57,920 $57,652 $58,284 $58,736 $59,771 $61,100

EXCHANGE RATE (AS AT 1 JUNE AUD PER USD) 1.050 1.242 1.193 0.930 1.031 -

PPP RATE 1.493 1.482 1.543 1.577 1.572 1.588

INFLATION 4.4 % 1.8 % 2.8 % 3.4 % 2.7 % 3.0 %

UNEMPLOYMENT 4.3 % 5.6 % 5.2 % 5.1 % 5.2 % 5.2 %

CHINa YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP 9.6 % 9.2 % 10.4 % 9.2 % 8.2 % 8.8 %

GDP PER CAPITA 8,828 YUAN 9,593 YUAN 10,542 YUAN 11,459 YUAN 12,340 YUAN 13,358 YUAN

EXCHANGE RATE (AS AT 1 JUNE CNY PER USD) 6.937 6.832 6.828 6.484 6.331 -

PPP RATE 3.823 3.760 3.964 4.173 4.238 4.276

INFLATION 5.9 % -0.7 % 3.3 % 5.4 % 3.3 % 3.0 %

UNEMPLOYMENT 4.2 % 4.3 % 4.1 % 4.0 % 4.0 % 4.0 %

uNITeD aRaB eMIRaTeS YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP 5.3 % -3.3 % 0.9 % 4.9 % 2.3 % 2.8 %

GDP PER CAPITA AED 137,662 AED 125,241 AED 122,663 AED 124,922 AED 124,051 AED 123,847

EXCHANGE RATE (AS AT 1 JUNE AED PER USD) 3.673 3.673 3.673 3.673 3.673 -

PPP RATE 4.774 4.193 4.525 5.110 5.292 5.176

INFLATION 12.3 % 1.6 % 0.9 % 0.9 % 1.5 % 1.7 %

UNEMPLOYMENT N/A N/A N/A N/A N/A N/A

euRO ZONe YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP 0.4 % -4.3 % 1.9 % 1.4 % -0.3 % 0.9 %

GDP PER CAPITA (INT $) $33,035 $31,857 $32,727 $33,786 $34,023 $34,766

EXCHANGE RATE (AS AT 1 JUNE EUR PER USD) 0.644 0.703 0.823 0.694 0.812 -

PPP RATE N/A N/A N/A N/A N/A N/A

INFLATION 3.3 % 0.3 % 1.6 % 2.7 % 2.0 % 1.6 %

UNEMPLOYMENT 7.7 % 9.6 % 10.1 % 10.1 % 10.9 % 10.8 %

KEY STATISTICS



33

INTERNATIONALREPORT

Ne ZeaLaND YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP -0.1 % -2.1 % 1.2 % 1.4 % 2.3 % 3.2 %

GDP PER CAPITA $31,770 $30,786 $30,821 $30,928 $31,314 $31,994

EXCHANGE RATE (AS AT 1 JUNE NzD PER USD) 1.274 1.542 1.468 1.212 1.328 -

PPP RATE 1.582 1.612 1.654 1.674 1.725 1.736

INFLATION 4.0 % 2.1 % 2.3 % 4.0 % 2.1 % 2.4 %

UNEMPLOYMENT 4.2 % 6.1 % 6.5 % 6.5 % 6.0 % 5.4 %

SINgaPORe YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP 1.7 % -1.0 % 14.8 % 4.9 % 2.7 % 3.9 %

GDP PER CAPITA $50,400 $49,030 $55,107 $56,813 $57,349 $58,567

EXCHANGE RATE (AS AT 1 JUNE SGD PER USD) 1.363 1.441 1.403 1.230 1.288 -

PPP RATE 1.062 1.066 1.055 1.038 1.045 1.050

INFLATION 6.6 % 0.6 % 2.8 % 5.2 % 3.5 % 2.3 %

UNEMPLOYMENT 2.2 % 3.0 % 2.2 % 2.0 % 2.1 % 2.1 %

uNITeD KINgDOM YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP -1.1 % -4.4 % 2.1 % 0.7 % 0.8 % 2.0 %

GDP PER CAPITA £23,363 £22,188 £22,498 £22,492 £22,525 £22,831

EXCHANGE RATE (AS AT 1 JUNE GBP PER USD) 0.510 0.610 0.689 0.609 0.653 -

PPP RATE 0.651 0.655 0.666 0.667 0.674 0.683

INFLATION 3.6 % 2.1 % 3.3 % 4.5 % 2.4 % 2.0 %

UNEMPLOYMENT 5.6 % 7.5 % 7.9 % 8.0 % 8.3 % 8.2 %

uSa YeaR

2008 2009 2010 2011 (P) 2012 (F) 2013 (F)

GDP -0.3 % -3.5 % 3.0 % 1.7 % 2.1 % 2.4 %

GDP PER CAPITA $43,194 $41,328 $42,256 $42,684 $43,202 $43,808

EXCHANGE RATE (AS AT 1 JUNE PER USD) 1.000 1.000 1.000 1.000 1.000 1.000

PPP RATE 1.000 1.000 1.000 1.000 1.000 1.000

INFLATION 3.8 % -0.3 % 1.6 % 3.1 % 2.1 % 1.9 %

UNEMPLOYMENT 5.8 % 9.3 % 9.6 % 9.0 % 8.2 % 7.9 %



34

INTERNATIONALREPORT

MARKET DATA INTeRNaTIONaL CONSTRuCTION

COST ReLaTIVITIeS

CITY JuL 12

NEW YORK AMERICAS 155

LONDON EMEA 143

HONOLULU AMERICAS 141

SAN FRANCISCO AMERICAS 137

BOSTON AMERICAS 133

HONG KONG ASIA 128

LOS ANGELES AMERICAS 125

WASHINGTON AMERICAS 124

PERTH OCEANIA 119

BRISTOL EMEA 118

DARWIN OCEANIA 118

MANCHESTER EMEA 114

SYDNEY OCEANIA 114

BIRMINGHAM EMEA 110

CANBERRA OCEANIA 108

MELBOURNE OCEANIA 108

SEATTLE AMERICAS 106

ADELAIDE OCEANIA 106

MACAU ASIA 105

DOHA EMEA 101

WELLINGTON OCEANIA 100

ABU DHABI EMEA 100

TOWNSVILLE OCEANIA 99

SINGAPORE ASIA 99

OTAGO OCEANIA 99

PORTLAND AMERICAS 97

CHRISTCHURCH OCEANIA 97

DUBAI EMEA 96

AUCKLAND OCEANIA 94

RIYADH EMEA 94

LAS VEGAS AMERICAS 93

PHOENIX AMERICAS 93

DENVER AMERICAS 93

BRISBANE OCEANIA 90

BEIJING ASIA 89

SHANGHAI ASIA 86

MUSCAT EMEA 86

GUANGzHOU ASIA 77

SHENzHEN ASIA 75



OFFICES AROUND THE WORLD

CaNaDa

Calgary

CaRIBBeaN

Barbados

Grand Cayman

uSa

Boston, MA

Chicago, IL

Denver, CO

Hagåtña, GU

Hilo, HI

Honolulu, HI

Kennewick, WA

Las Vegas, NV

Los Angeles, CANew York, NY

Orlando, FL

Phoenix, AZ

Portland, OR

San Francisco, CA

Seattle, WA

Tucson, AZ

Waikoloa, HI

Washington, DC

aMeRICaS

CHINa

Beijing

Chengdu

ChongqingDalian

Guangzhou

Guiyang

Haikou

Hangzhou

Hong Kong

Macau

Nanjing

Qingdao

Shanghai

Shenyang

Shenzhen

Tianjin

Wuhan

Wuxi

Xian

Zhuhai

INDIa

Mumbai

INDONeSIa

Jakarta

MaLaYSIa

Kuala Lumpur

PHILIPPINeS

Cebu

Davao

Manila

SINgaPORe

Singapore

SOuTH KORea

Seoul

THaILaNDBangkok

VIeTNaM

Ho Chi Minh City

aSIa

MIDDLe eaST

Abu Dhabi

Doha

DubaiMuscat

Riyadh

uK

Birchwood/Warrington

Birmingham

Bristol

London

Manchester

Newcastle

Shefeld

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

SpainSweden

Slovakia

Slovenia

Switzerland

Turkey

Ukraine

eMea

auSTRaLIa

Adelaide

Brisbane

CairnsCanberra

Darwin

Gold Coast

Melbourne

Newcastle

Northern NSW

Perth

Sunshine Coast

Sydney

Townsville

Western Sydney

Ne ZeaLaNDAuckland

Christchurch

Otago

Palmerston North

Tauranga

Wellington

OCeaNIa



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rlb international report third quarter 2012

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