- 1 -Gary Emmett

International Construction Cost Survey 2009

Gary Emmett Economist Turner & Townsend Level 3 179 Turbot Street Brisbane Queensland 4000

t: +61 (0)7 3020 4759 e: gary.emmett@turntown.com w: turnerandtownsend.com

International Construction Cost Survey 2009

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INTRODUCTION WHAT HAS HAPPENED SINCE THE LAST SURVEY? REGIONS INCLUDED IN THE SURVEY COUNTRY OVERVIEWS ECONOMIC INDICATORS TENDER MARKET CONDITIONS COST ESCALATION, MARGINS AND PRELIMINARIES NEXT 12 MONTHS LABOUR RATES KEY TRADES MATERIAL COSTS BUILDING COSTS - WAREHOUSES BUILDING COSTS - COMMERCIAL BUILDING COSTS - RESIDENTIAL BUILDING COSTS - RETAIL BUILDING COSTS - HOTELS BUILDING COSTS - HOSPITALS BUILDING COSTS - SCHOOLS BUILDING COSTS - CAR PARKS BUILDING COSTS - AIRPORTS EXCHANGE RATES CONTRIBUTORS

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Introduction

Welcome to the second annual Turner & Townsend construction cost survey. In here you can find and compare construction costs, materials costs, labour costs and market conditions across many of the countries in which Turner & Townsend operates. All of the cost data in here has come from our own professionals working in the commercial construction sector across the globe. They were asked to complete a comprehensive survey of construction costs based on their experience with actual projects within the region. Our thanks go to them for their valuable input. We believe that this is one of the most comprehensive and detailed overviews of construction costs available anywhere. We hope you appreciate this service from Turner & Townsend and welcome your feedback on ways we can improve it in future.

This time last year many construction markets were described as overheated, with construction costs rising faster than general inflation. How quickly things change. Few people realised that the unfolding sub prime crisis in the United States would cause the worst global downturn in 80 years. In July 2009 conditions are nothing like a year ago. Construction markets are now described as lukewarm at best. Construction costs are flat or falling in most regions. There are very few areas where construction costs are still increasing faster than general inflation. The fuel that drives the global economy is short term finance. With the failure of the sub-prime mortgage market in the United States and collapse (or near collapse) of numerous major banks, the short term money market dried up almost overnight. By October 2008 confidence between banks almost disappeared, with the result that inter-bank lending almost disappeared. As short term debt dried up and maturing loans were not extended, many businesses had to cancel projects. Values for property and shares fell dramatically. Business and consumer confidence collapsed. As a consequence the market for new construction projects has shrunk globally. As projects complete, they are not replaced with new ones. The industry sectors which have suffered most are export led manufacturing, mining, property and financial sectors. With less business, credit shortages and weak prospects, businesses are unable to start the construction projects they had been planning.

What has happened since the last survey?

The period July 2008 to June 2009 was a period of remarkable change. At the time of the last survey (July 2008) the market was characterised by strong order books, healthy margins, generalised skills shortages in many markets, and rising costs of construction.

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In an effort to encourage construction and create jobs, governments worldwide have been forced to pump money into their economies. As well as including tax breaks and cash handouts to encourage consumption, these stimulus packages usually include major infrastructure projects and more short term shovel ready projects that can be quickly started to keep construction jobs going. The scale of the global stimulus is enormous. For example so far the United States has pledged $787bn, China $586bn, Europe 200bn Euros, and Japan $100bn. The stimulus packages have been effective in averting an even worse downturn, by stimulating consumption and promoting construction, and as we write this in July 2009 conditions appear to be improving. Most regions appear to have bottomed out in terms of economic growth, and the question is whether the recession will be V shaped, U shaped (or worse still W-shaped). Confidence is now improving. The stock market is a good leading indicator and worldwide stock markets are recovering. Many infrastructure projects are moving from planning to execution phase, stimulus package construction works are underway and global finance is starting to flow again. We think that this is the bottom of the market for most regions and that recovery will be underway during 2010. However unemployment is still likely to worsen, and in many regions will continue to increase during 2009 and early 2010 before recovering in late 2010.

Regions included in the Survey

Australia China England Germany India Ireland

Malaysia Russia Scotland Singapore South Africa UAE Dubai

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4.2

China

4
4.1

Country Overviews
Australia
Building costs have fallen substantially in the last twelve months, in some cases up to 28% reflecting the weaker market with lower margins and preliminaries. Wages are still increasing. Trade rates are mixed with steel and concrete down but other trades up compared with 2008. Despite a collapse of the export led manufacturing sector, the governments huge stimulus package is boosting construction of Chinas massive infrastructure program. Chinas low cost base and abundant cheap labour force are ensuring that fabrication yards and heavy construction facilities are still operating at full capacity. Imports of iron ore and copper appear to be increasing through stockpiling at cheap prices but also to assist with a ramping up of steel production for infrastructure projects. This in turn will stimulate the revival of other economies in the region including Japan, Korea and Australia. Some Major Construction Projects

Construction costs have fallen 2-6% in Australia since peaking in the third quarter of 2008. Labour costs are still increasing and building materials are stable except for steel and rebar which have fallen. Margins and preliminaries are falling through increased competition. The construction sector in Australia has suffered a severe downturn with numerous project cancellations in the commercial and mining sectors. However as reflected in the statistics so far the economic downturn has left Australia reasonably unscathed, with only one quarter of negative growth and a still healthy unemployment level. During late 2009 unemployment is expected to increase as private development slows down, but very strong expenditure on schools and community housing through the governments stimulus plan will help keep the construction sector going. Some Major Construction Projects Australia Pluto LNG Plant - WA North South Bypass Tunnel Queensland Gorgon LNG Project Wonthaggi Desalination Plant Building the Education Revolution Port Botany Container Terminal Expansion - NSW $10.5 bn $3.2 bn $40 bn $3.1 bn $2.1 bn $1 bn

China

South to North Water Transfer Project Innercity Rail Project West to East Pipeline Shanghai Tower

$62 bn $88 bn $14 bn $2.2 bn

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4.3

England

4.4

Ireland

Construction costs have fallen by as much as 8% with the survey indicating falls in wages, trade rates and some building materials. England has been particularly badly hit by the global financial crisis with numerous job losses across the economy form finance to retail, and a severe downturn in construction. Preliminaries and margins appear to be holding up indicating a squeeze on subcontractor trades. GDP is expected to fall by 4.1% in 2009 and stay negative in 2010. The English housing sector has been the hardest hit during the economic crisis, with the tight credit conditions and falling house prices deterring mortgage borrowing. Civil and commercial sectors are also struggling due to weak demand. Like most governments, spending in infrastructure will be the key drivers of new work. The government will invest 22 bn on new roads and 26 bn into new rail projects to help boost the ailing economy.

The survey indicates across the board fall in construction costs in Ireland in some case by as much as 20%. Preliminaries (5%) and margins (2%) have been halved since 2008 indicating intense competition to secure work. In some instances contractors are accepting a negative margin (-5% to -10%) to secure cashflow. Building material prices are static or falling, and wages are lower than 2008 indicating a squeeze on subcontract labour. A new agency the National Assets Management Agency has been established to take over the banks bad debts. The construction sector in Ireland is currently facing some serious repercussions from the global financial crisis. In 2006 the construction sector accounted for 14-16% of the economy, 2009 is now seeing that contribution fall to 5-6%. In 2009 growth levels are set to reach minus 8% and unemployment could blow out to 12%. Irelands housing boom is well and truly over. Now there is an oversupply of housing, and falling property values. Many towns and cities in Ireland have surplus office space, a situation which is set to continue as the economy continues to further deteriorate. Some Major Construction Projects Ireland A1 Dualling Beech Hill to Cloghogue Greystones Harbour & North Beach Gateway Hotel Titanic Quarter Development Dublin Airport Capital Program Dublin Metro 152 m 300 m 1 bn 2 bn tbd

Some Major Construction Projects England Cross Rail Scheme Birmingham Hospital Redevelopment The Shard London Tideway Tunnels Widening of M25 15.9 bn 1bn 1.4 bn 2 bn 1.2 bn

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4.5

Scotland

4.6

Russia

As the first year of inclusion in the survey there is no data to compare with 2008 however in common with the rest of the UK construction costs are expected to decline by as much as 8% in 2009. Housing construction currently remains low in Scotland and isnt expected to peak again until 2014. Declines in private housing are down 26% while the commercial sector is also seeing falls in office, retail and leisure spaces. Only 2 sectors are predicted to see growth in 2009. These are increased spending in the public housing sector along with infrastructure projects. The M74, M80, Scotland Airport Rail Link, Airdrie-Bathgate Rail Link and the Edinburgh Tram Scheme are all scheduled to proceed.

High inflation appears to still be the norm in Russia in 2009. The survey shows construction costs increasing as a result of continued high preliminaries and margins albeit at a slower rate than inflation. Declining activity in the commercial and residential sectors, and a decline in the countrys cement sector have seen projects delayed and cancelled including the $2 bn Russia Tower in Moscow. However the economy is under severe pressure from the downturn. $13 bn worth of infrastructure work has been cancelled or delayed since September 2008, The governments commitment to invest Rub 13.5trn ($389 bn USD) into transport infrastructure may be enough to develop some positive construction activity. It is expected that the Russian construction industry will show positive growth again by around 2010.

Some Major Construction Projects Scotland M74 M80 Stepps-Haggs Scotland Airport Rail Link Airdrie-Bathgate Link Edinburgh Tram Scheme Southern General Hospital Glasgow Edinburgh to Glasgow rail upgrade 750 m 180 m 170 m 300 m 512 Million 600 Million 1 bn

Some Major Construction Projects Russia Kazakhstan China gas pipeline Crystal Island Nabucco Pipeline Eastern Pipeline TaishetSkovorodino - Perevoznaga Caspian Pipeline Expansion $26 bn $4 bn 7.9 bn $16-18 bn $1.5 bn

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4.8 4.7 Germany

Dubai

Survey results indicate only modest increases (less than 1.5%) for German construction costs despite a decline in economic growth. Most trades and building materials are continuing to increase modestly, however escalation for the next twelve months is expected to be 0% As the private and commercial sectors slow, the German Government will invest a 58.4 bn stimulus plan to help strengthen the construction industry. 1.9 bn will be spent on federal roads and railways, 1.9 bn is allocated to federal buildings, equipment and research, 6 bn will be spent on education and 3.3 bn will go towards new hospitals, local roads, and urban or rural developments. The downturn in the private and commercial sectors is predicted to continue well into 2010.

According to the survey construction costs in Dubai have fallen sharply as the quantity of work underway has fallen. For some forms of construction falls of 18-20% have been experienced. Concrete has fallen 11% and reinforcement by 58%. After experiencing a construction boom, Dubais construction has experienced a severe slowdown. In recent months many developers have either cancelled or postponed bns of dollars worth of projects. It is estimated a least $75 bn worth of property schemes have already been placed on hold, while an estimated 40% of projects have been cancelled. Those still proceeding however are enjoying the falling costs of materials. Steel, copper, cement and transportation costs are major contributors to fall. Infrastructure is still going strong with further boosts to an already strong infrastructure stimulus plan.

Some Major Construction Projects Major Construction Projects Dubai Germany A5 Motorway A8 Motorway North European Gas Pipeline Brussels to Antwerp Rail line Tower 185 1 bn 1 bn 6 bn 112 Million 254 Million Jumeirah Gardens Dubailand Yas Island White Bay Umm Al Quwain Saudi Refinery at Jubail AED95 AED54 AED38 AED29 bn bn bn bn

AED10 bn

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4.9

South Africa

4.10

India

Building material costs are falling but this is being offset by the rising costs of wages particularly in the run up to the 2010 FIFA World Cup. In some cases this is translating into large increases in construction costs. For example hotel construction costs have jumped by 40-45% and high-rise apartments have increased by 25%. New or refurbished stadiums are being built in Cape Town, Durban, Port Elizabeth, Polokwane and Nelspruit. The South African construction industry is highly dependant on government contracts in the areas of transport, energy and low cost housing. These projects account for the bulk of construction activity in South Africa. The private, mining and manufacturing sectors however have deteriorated as demand for their resources in gold, platinum, coal and iron ore subside.

As one of the countries that has suffered least from the global slowdown, construction costs in India are still increasing (5%) at faster than inflation (3%). The economic slowdown has not impacted Indias construction industry like it has in most other countries. In fact Indias demand for construction is expected to grow by a least 8-9% per annum. Industrial investments have started to pick up after a slowdown, with significant investments expected over the next couple of years. It is reported that Indias industrial sector is its fastest growing sector. Infrastructure developments are also going ahead with investment in roads, railways, urban infrastructure, power and irrigation projects.

Some Major Construction Projects South Africa Gautrain Rapid Rail Link West African Gas Pipeline Project Coega Aluminium smelter Green Point Football Stadium Rea Vaya Bus Rapid Transit System R24 bn R1 bn R2.7 bn R4.5 bn R419 m Some Major Construction Projects Paradeep Refinery India Project Navi Mumbai Antilla Residence Delhi Metro Rail System The Imperial Towers RS10 bn RS2 bn RS2 bn RS10571crores RS 500crores

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4.11

Singapore

According to this years survey construction costs in Singapore have seen a marked downturn with falls of up to 25% for high rise residential construction. Commercial construction is down around 15%. Wages are mostly unchanged, but the key material costs of concrete, steel and reinforcement have fallen substantially In general the market is more competitive market with subcontract margins and overheads being squeezed. In 2008 construction demand in Singapore reached record highs, there was strong demand for private residential, commercial development, public residential and civil engineering works. This year private housing, commercial and the private sectors are decreasing as the tight credit conditions and weakened economy take hold. The public sector will lead new construction in 2009, fuelled largely by infrastructure such as the MRT and International Cruise Terminal projects.

Some Major Construction Projects Singapore SMRT Downtown Line Marina Bay Sentosa Island International Cruise Terminal $12 bn $8 bn $6.7 bn $7 bn $2.73 bn $1 bn

Hulu Terrengannu Hydro Project

South Beach Development LNG Import Terminal Jurong Island

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Economic Indicators

The following chart (sourced from IMF Reports) shows that GDP growth has slowed dramatically in our survey countries during 2009 with most regions experiencing negative GDP growth as the global economy slows down. The exceptions are China and India where growth has slowed. Forecasts for 2010 indicate positive growth again in most cases as the global economy starts to recover. At first recovery is likely to be slow and indeed unemployment may continue to worsen even after recovery starts. Inflation has been reduced in most countries as a result of the global slowdown. The exception is Russia where inflation is still very strong, and South Africa where construction costs and inflation are increasing as the country prepares for the 2010 FIFA World Cup. In those countries where construction costs have been falling we expect construction costs to bottom out during 2009-2010 and then start increasing slowly at first.

Country

Inflation

Unemployment

GDP Actual 2008 3.3%

GDP Forecast 2009 0.7%

GDP Forecast 2010 3.2%

World Australia Eurozone Germany Ireland South Africa Russia Dubai Mumbai China Singapore Malaysia England USA

2.2% 2.5% 0.9% -0.6% -4.7% 8.6% 12.3% 5.5% 7.8% -1.4% -0.3% 2.4% 0.8% -1.3%

5.7% 8.3% 11.9% 23.5% 9.9% 9.9% 7.3% 4.3% 3.2% 4.0% 6.8% 9.5%

2.1% 0.9% 1.3% -2.3% 3.1% 5.6% 7.4% 7.3% 9.0% 1.1% 4.6% 0.7% 1.1%

0.3% -4.2% -5.6% -8.0% -0.3% -6.0% -0.6% 4.5% 6.5% -10.0% -3.5% -4.1% -2.8%

0.6% -0.4% -1.0% -3.0% 1.9% 0.5% 1.6% 5.6% 7.5% -0.1% 1.3% -0.4% 0.0%

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6
6.1

Tender Market Conditions

How would you describe current market tendering conditions?

6.2

Is the construction market getting warmer, cooler or staying the same?

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Cost Escalation, Margins and Preliminaries next 12 months

Please Indicate average expected escalation for the next twelve months England South Africa Singapore Malaysia Scotland Russia Ireland Germany India China Australia
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

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Please indicate consumer price inflation in your country England South Africa Singapore Malaysia Scotland Russia Ireland Germany India China Australia
-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

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Please indicate typical contractors margin in your region

England South Africa Singapore Malaysia Scotland Russia Ireland Germany India China Australia
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

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Please indicate typical preliminaries as a % of total costs

England South Afric a Singapore Malaysia Sc otland Russia Ireland Germany India China Australia
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

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Labour Rates

Cost of Labour including overheads per hour (local currency and USD)
Actual Prices Plumber/Electrician Plumber/Electrician (USD) Carpenter/Bricklayer Carpenter/Bricklayer (USD) Carpet layer, tiler, plasterer Carpet layer, tiler, plasterer (USD) General Labourer General Labourer (USD) Site foreman Site foreman (USD) Australia AUD 62 48.36 46 35.88 43 33.54 40 31.20 72 56.16 China CNY 17 2.38 16 2.28 15 2.10 10 1.37 28 3.92 Ireland Euro 28 39.20 28 39.20 28 39.20 22 30.80 28 39.20 India INR 45 0.90 40 0.80 40 0.80 30 0.60 62 1.24 Germany Euro 39 54.60 35 49.00 35 49.00 22 30.80 40 56.00 Russia RUB 300 9.60 300 9.60 300 9.60 250 8.00 500 16.00 Scotland GBP 19 30.21 12 19.08 12 19.08 10 15.90 30 47.70 Malaysia MYR 19 5.32 13 3.64 19 5.32 8 2.24 50 14.00 Singapore SGD 25 17.25 20 13.80 20 13.80 10 6.90 30 20.70 South Africa ZAR 45 5.40 45 5.40 45 5.40 20 2.40 80 9.60 England GBP 30 47.70 30 47.70 30 47.70 18 28.62 45 71.55

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Cost of Labour including overheads per hour 2008-2009 % change.

Actual Prices 2008 Plumber/Electrician 2008-2009 % Change Carpenter/Bricklayer 2008-2009 % Change Carpet layer, tiler, plasterer 2008-2009 % Change General Labourer 2008-2009 % Change Site foreman Site foreman Australia AUD 60 3.2% 46 0.0% 43 0.0% 38 5.0% 68 5.6% China CNY 13 30.8% 13 25.0% 12 25.0% 8 21.9% 23 17.9% Ireland Euro 33 -15.2% 33 -15.2% 33 -15.2% 28 -21.4% 33 -17.9% Germany Euro 37 5.4% 34 2.9% 34 2.9% 21 4.8% 40 0% Singapore SGD 25 0% 20 0% 20 0% 10 0% 30 0% South Africa ZAR 40 12.5% 40 12.5% 40 12.5% 20 0.0% 70 14.3% England GBP 32 -6.30% 32 -6.3% 32 -6.3% 18 0.0% 50 -10.0%

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Key Trades

Key Trades excluding preliminaries and builders margin (local currency)

Actual Prices Excavate basement (m3) (1800m3 job) Excavate footings (m) Concrete in slab (m3) (1500m3 job) Reinforcement in beams (tonne) Formwork to soffit of slab (m2) Blockwork in wall (m2) (10,000 block job) Structural steel beams (tonne) Pre-cast Concrete wall (m2) Curtain wall glazing incl support system (m2) (1000m2 job) Plasterboard 13mm thick to stud wall (m2)(3000m2 job) Single solid core door incl frame and hardware (no) (50 door Job) Painting to walls primer + coats (m2) Ceramic tiling (m2) (1000m2 job) Vinyl flooring to wet areas (m2) (500m2 job) Carpet medium tufted (m2) (4500m2 job) Lighting installation (m2) (5000m2 job) copper pipe 15mm to wall (m) (1000+metre job) fire sprinklers (per m2) (5000m2 job) Airconditioning incl main plant (m2) (5000m2 + job)
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Australia AUD 25 68 261 2300 100 141 6574 298 1042 30 750 16 118 45 68 80 58 49 290

China CNY 9 30 415 5989 88 150 10831 155 1500 120 2000 43 165 385 385 660 79 200 480

Ireland Euro 12 35 105 1050 35 27 1650 50 550 75 650 7 55 50 35 14 28 70 300

India INR 850 400 6000 50000 500 1000 70000 8000 6500 2000 25000 180 3000 1900 1800 3900 1500 800 4100

Germany Euro 25 15 220 1300 50 60 2400 64 400 50 714 5 45 30 55 14 28 71 320

Russia RUB 660 400 4500 20000 800 1300 70000 5000 21700 2700 22000 250 1800 600 700 3200 800 704 5760

Malaysia MYR 27 27 332 2710 55 67 6500

Singapore SGD 25 50 185 1800 45 35 6500 110 500 30 800 8 70 150 70 200 27 80 260

South Africa ZAR 50 70 1100 10000 185 200 28000 450 1600 200 2000 30 245 100 210 60 35

England GBP 50 13 110 950 45 35 1900 50 500 20 750 4 40 25 23 65 10 30

Scotland GBP 9 9 124 1300 16 20 1450 170 350 4 70 3 34 32 44 105 7 80 125

400 90 800 8 110 98 90 150 78 100 300

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Prices in US$ at Jun 09 exchange rates

Australia USD 20 53 204 1794 78 110 5128 232 813 23 585 12 92 35 53 62 45 38 226 China USD 1 4 58 838 12 21 1516 22 210 17 280 6 23 54 54 92 11 28 67 Ireland USD 17 49 147 1470 49 38 2310 70 770 105 910 10 77 70 49 20 39 98 420 India USD 17 8 120 1000 10 20 1400 Germany USD 35 21 308 1820 70 84 3360 90 560 70 1000 7 63 42 77 20 39 99 448 Russia USD 21 13 144 640 26 42 2240 160 694 86 704 8 58 19 22 102 26 23 184 Malaysia USD 8 8 93 759 15 19 1820 0 112 25 224 2 31 27 25 42 22 28 84 Singapore USD 17 35 128 1242 31 24 4485 76 345 21 552 6 48 104 48 138 19 55 179 South Africa USD 6 8 132 1200 22 24 3360 54 192 24 240 4 29 12 25 7 4 0 192 England USD 80 21 175 1511 72 56 3021 80 795 32 1193 6 64 40 37 103 16 48 246 Scotland USD 14 14 197 2067 25 31 2306 270 557 7 111 5 54 51 70 167 11 127 199

Excavate basement (m3) (1800m3 job) Excavate footings (m) Concrete in slab (m3) (1500m3 job) Reinforcement in beams (tonne) Formwork to soffit of slab (m2) Blockwork in wall (m2) (10,000 block job) Structural steel beams (tonne) Pre-cast Concrete wall (m2) Curtain wall glazing incl support system (m2) (1000m2 job) Plasterboard 13mm thick to stud wall (m2)(3000m2 job) Single solid core door incl frame and hardware (no) (50 door Job) Painting to walls primer + coats (m2) Ceramic tiling (m2) (1000m2 job) Vinyl flooring to wet areas (m2) (500m2 job) Carpet medium tufted (m2) (4500m2 job) Lighting installation (m2) (5000m2 job) copper pipe 15mm to wall (m) (1000+metre job) fire sprinklers (per m2) (5000m2 job) Airconditioning incl main plant (m2) (5000m2 + job)

130 40 500 4 60 38 36 78 30 16 82

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Material Costs
South Africa ZAR 1100 10000 6000 2000 18000 290 80 50 50 20

Materials Costs (local currency)

Actual Prices Australia AUD 184 1300 3334 513 2757 46 28 35 14 12 5 China CNY 370 3700 18 0 7500 430 50 30 60 61 12 Dubai AED 622 3275 Ireland Euro 55 650 420 400 950 40 1 3 5 2 1 India INR 4000 35000 20000 5000 55000 400 120 250 300 1400 2690 Germany Euro 110 750 430 440 2250 55 3.5 15 4 10 4 Russia RUB 3500 17900 800 9000 35100 900 159 100 43 300 32 Scotland GBP 71 450 460 150 675 55 1 1 7 1 0 Malaysia MYR 230 2300 3600 360 4000 188 8 25 5 24 15 Singapore SGD 125 900 800 250 2000 25 12 30 20 12 2 England GBP 90 700 1100 450 1600 30 2 5 2 1 0

Concrete 30mpa (m3) (1500m3 job) Reinforcement bar 16mm (tonne)(120 tonne job) Concrete Block (400x200) per 1000 (10 000 block job) Standard Brick per 1000 Structural Steel beams (tonne) (100 tonne job) Glass pane 6mm (m2) Softwood timber for framing 100mm x 50mm (m) 13mm Plasterboard (m2) Emulsion Paint (litre) Copper pipe 15mm (metre) (1000+job) Copper cable (metre) (3c +e, 2.5mmPVC)(100,000m+job)

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Materials Costs (converted to US$ at Jun 09 rates)

Australia USD Concrete 30mpa (m3) (1500m3 job) Reinforcement bar 16mm (tonne)(120 tonne job) Concrete Block (400x200) per 1000 (10 000 block job) Standard Brick per 1000 Structural Steel beams (tonne) (100 tonne job) Glass pane 6mm (m2) Softwood timber for framing 100mm x 50mm (m) 13mm Plasterboard (m2) Emulsion Paint (litre) Copper pipe 15mm (metre) (1000+job) Copper cable (metre) (3c +e, 2.5mmPVC)(100,000m+job) 144 1014 2601 400 2150 36 22 27 11 9 4 China USD 52 518 3 0 1050 60 7 4 8 9 2 Dubai USD 168 884 Ireland USD 77 910 588 560 1330 56 2 4 6 2 1 5 6 28 54 100 1100 8 India USD 80 700 Germany USD 154 1050 600 616 3150 77 5 21 6 14 6 3 1 10 1 288 1123 29 Russia USD 112 573 Scotland USD 113 716 731 239 1073 87 2 2 12 1 0 Malaysia USD 64 644 1008 101 1120 53 2 7 1 7 4 Singapore USD 86 621 552 173 1380 17 8 21 14 8 1 South Africa USD 132 1200 720 240 2160 35 10 6 6 2 716 2544 48 3 8 3 2 England USD 143 1113

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Building Costs - Warehouses

South Africa ZAR 3,700 444 3,900 468 6,000 720 900 1,431 1,500 2,385

Building Cost/m2 Warehouses 2009

Actual Prices 2009 Warehouses Warehouse/factory units - basic Warehouse/factory units - basic USD Large warehouse distribution centre Large warehouse distribution centre USD High tech factory/laboratory High tech factory/laboratory (USD) Australia AUD 861 672 652 509 1,490 1,162 China CNY 2,300 322 2,700 378 5,300 742 Dubai AED 3,600 972 5,000 1,350 Ireland Euro 550 770 975 1,365 3,300 4,620 India INR 30,000 600 35,000 700 37,000 740 Germany Euro 345 483 325 455 1,575 2,205 Russia RUB 21,500 688 25,800 826 86,000 2,752 Scotland GBP 675 1,073 820 1,304 Singapore SGD 1,200 828 1,500 1,035 2,800 1,932 England GBP

Building Cost/m2 Warehouses 2008-2009 % change

Australia AUD Warehouse/factory units - basic 2008-2009% change Large warehouse distribution centre 2008-2009% change High tech factory/laboratory 2008-2009% change 883 -2% 666 -2% 1,540 -3% China CNY 3,000 -23% 3,300 -18% 6,100 -13% Dubai AED 6,000 -40% Ireland Euro 650 -15% 1,100 -11% 4,000 -18% India INR na na na na na na Germany Euro 340 1% 320 2% 1,560 1% Russia RUB na na na na na na Scotland GBP na na na na na na Singapore SGD 1,400 -14% 1,600 -6% 3,000 -7% South Africa ZAR 3,700 0% 3,900 0% 4,500 33% 867 4% 1,365 10% England GBP 391

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Building Costs - Commercial

South Africa ZAR 5,000 600 8,500

Building Cost/m2 Commercial 2009

Actual Prices Commercial Ofiices - Business park Ofiices - Business park (USD) CBD Offices - up to 20 floors medium std CBD Offices - up to 20 floors medium std (USD) CBD Offices - prestige CBD Offices - prestige (USD) Australia AUD 1,762 1,374 2,831 China CNY 4,400 616 6,900 Dubai AED 4,700 1,269 Ireland Euro 1,300 1,820 1,950 India INR 27,000 540 23,000 Germany Euro 1,140 1,596 1,140 Russia RUB 39,600 1,267 52,800 Scotland GBP 1,240 1,972 1,445 Singapore SGD 2,000 1,380 2,500 England GBP 1,500 2,385 2,700 2,500 Malaysia MYR

2,208 3,541 2,762

966 8,900 1,246

2,730 2,950 4,130

460 25,000 500

1,596 1,640 2,296

1,690 6,600 211

2,298 1,650 2,624

1,725 2,800 1,932

1,020 10,000 1,200

4,293 3,800 6,042

700 3,500 980

Building Cost/m2 Commercial 2008-2009 % change

Australia AUD -2% 2,911 -3% 3,661 -3% China CNY -20% 8,400 -18% 10,500 -15% Dubai AED na 6,000 na 8,000 na Ireland Euro -26% 2,500 -22% 3,750 -21% India INR na na na na na Germany Euro 1% 1,130 1% 1,620 1% Russia RUB na na na na na Scotland GBP na na na na na Singapore SGD -13% 3,000 -17% 3,200 -13% South Africa ZAR 11% 7,000 21% 7,500 33% England GBP na 2,972 -9% na na Malaysia MYR na na na na na

2008-2009% change CBD Offices - up to 20 floors medium std 2008-2009% change CBD Offices - prestige 2008-2009% change

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Building Costs - Residential

Building Cost/m2 Residential 2009

Actual Prices Residential Individual detached house medium standard Individual detached house medium standard (USD) Individual detached house prestige Individual detached house prestige (USD) Townhouses medium standard Townhouses medium standard (USD) Apartments private medium density Apartments private medium density (USD) Apartments high rise Apartments high rise (USD) Aged care/affordable units Aged care/affordable units (USD) Australia AUD 1,671 1,303 2,107 1,643 1,300 1,014 2,212 1,725 2,822 2,201 2,256 1,760 China CNY 4,400 616 5,100 714 4,000 560 3,200 448 3,900 546 2,600 364 6,600 1,782 6,600 1,782 5,600 1,512 7,900 2,133 Dubai AED Ireland Euro 1,100 1,540 1,800 2,520 1,080 1,512 1,500 2,100 1,650 2,310 2,000 2,800 India INR 16,500 330 21,500 430 20,000 400 19,000 380 23,000 460 14,000 280 Germany Euro 830 1,162 1,170 1,638 1,760 2,464 680 952 645 903 670 938 Russia RUB 30,000 960 60,000 1,920 25,000 800 50,000 1,600 60,000 1,920 Scotland GBP 820 1,304 1,000 1,590 1,000 1,590 980 1,558 1,100 1,749 950 1,511 1,500 420 Malaysia MYR Singapore SGD 3,500 2,415 4,400 3,036 2,800 1,932 2,000 1,380 2,500 1,725 1,350 932 South Africa ZAR 5,000 600 9,000 1,080 6,000 720 6,000 720 7,500 900 England GBP 1,050 1,670 1,465 2,329 1,200 1,908 1,800 2,862 2,300 3,657

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Building Cost/m2 Residential 2008-2009 % change

Australia AUD Individual detached house medium standard 2008-2009% change Individual detached house prestige 2008-2009% change Townhouses medium standard 2008-2009% change Apartments private medium density 2008-2009% change Apartments high rise 2008-2009% change Aged care/affordable units 2008-2009% change 1,700 -1.7% 2,150 -2.0% 1,322 -1.7% 2,273 -2.7% 2,894 -2.5% 2,400 -6.0% China CNY 5,800 -24.1% 6,500 -21.5% 4,800 -16.7% 4,500 -28.9% 5,000 -22.0% 3,700 -29.7% Dubai AED na na 8,200 -19.5% 8,200 -19.5% 6,700 -16.4% 9,000 -12.2% na na Ireland Euro 1,500 -26.7% 2,200 -18.2% 1,400 -22.9% 1,750 -14.3% 1,800 -8.3% 2,500 -20.0% India INR na na na na na na na na na na na na Germany Euro 820 1.2% 1,160 0.9% 1,740 1.1% 670 1.5% 640 0.8% 660 1.5% Russia RUB na na na na na na na na na na na na Scotland GBP na na na na na na na na na na na na Malaysia MYR na na na na na na na na na na na na Singapore SGD 4,000 -12.5% 4,900 -10.2% 3,400 -17.6% 3,000 -33.3% 3,400 -26.5% 1,500 -10.0% South Africa ZAR 4,500 11.1% 8,000 12.5% 5,000 20.0% 4,800 25.0% 7,000 7.1% 5,000 na England GBP 1,050 0.0% 1,465 0.0% 1,008 19.0% 924 na na na na na

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Building Costs - Retail

South Africa ZAR 7,800 936 6,800 816 7,000 840 1,835 2,918

Building Cost/m2 Retail 2009

Australia AUD Large shopping centre including mall Large shopping centre including mall (USD) Neighbourhood incl supermarket Neighbourhood incl supermarket (USD) Prestige car showroom Prestige car showroom (USD) 2,215 1,728 1,786 1,393 4,458 3,477 China CNY 5,900 826 4,000 560 3,400 476 Dubai AED 5,200 1,404 3,700 999 Ireland Euro 2,500 3,500 2,200 3,080 2,900 4,060 India INR 27,000 540 23,000 460 15,000 300 Germany Euro 990 1,386 900 1,260 880 1,232 30,000 960 Russia RUB Malaysia MYR 3,000 840 Singapore SGD 2,500 1,725 2,000 1,380 3,300 2,277 England GBP

Building Cost/m2 Retail 2008-2009 % Change

Australia AUD Large shopping centre including mall 2008-2009% change Neighbourhood incl supermarket 2008-2009% change Prestige car showroom 2008-2009% change 2,326 -5% 1,830 -2% 4,624 -4% China CNY 7,500 -21% 5,100 -22% 3,900 -13% Dubai AED 6,500 -20% 4,500 -18% na na Ireland Euro 2,950 -15% 2,950 -25% 3,250 -11% India INR na na na na na na Germany Euro na na na na 870 1% Russia RUB na na na na na na Malaysia MYR na na na na na na Singapore SGD 3,000 -17% 2,400 -17% 3,500 -6% South Africa ZAR 5,500 42% 6,000 13% 6,200 13% England GBP na na 1,835 0% na na

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Building Costs - Hotels

South Africa ZAR 8,000 960 10,000 1,200 9,700 1,164

Building Cost/m2 Hotels 2009

Australia AUD 3 Star travellers 3 Star travellers (USD) 5 Star Luxury 5 Star Luxury (USD) Resort Style Resort Style (USD) 2,682 2,092 3,766 2,937 4,745 3,701 China CNY 5,500 770 10,000 1,400 8,300 1,162 Dubai AED 8,000 2,160 10,700 2,889 10,600 2,862 Ireland Euro 1,700 2,380 3,000 4,200 2,200 3,080 India INR 35,700 714 84,150 1,683 33,150 663 Germany Euro 1,220 1,708 3000 4200 Russia RUB 59,400 1,901 74,250 2,376 Malaysia MYR 3,500 980 6,000 1,680 Singapore SGD 2,700 1,863 4,000 2,760 2,600 1,794 England GBP 1,200 1,908 2,500 3,975

Building Cost/m2 Hotels 2008-2009 % change

Actual Prices 2008 Hotels 3 Star travellers 2008-2009% change 5 Star Luxury 2008-2009% change Resort Style 2008-2009% change Australia AUD 2,755 -2.6% 3,869 -2.7% 5,029 -5.6% China CNY 6,800 -19.1% 11,300 -11.5% 9,100 -8.8% Dubai AED 10,000 -20.0% 13,000 -17.7% 15,000 -29.3% Ireland Euro 2,000 -15.0% 3,300 -9.1% 2,450 -10.2% India INR na na na na na na Germany Euro 1,210 -0.8% na na na na Russia RUB na na na na na na Malaysia MYR na na na na na na Singapore SGD 3,300 -18.2% 4,800 -16.7% 3,200 -18.8% South Africa ZAR 5,500 45.5% 7,000 42.9% 6,900 40.6% England GBP 624 na 1,254 na na na

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Building Costs - Hospitals

South Africa ZAR 5,500 660 7,000 840 8,500 1,020

Building Cost/m2 Hospitals 2009

Actual Prices Hospitals Day Centre Day Centre (USD) Regional Hospital Regional Hospital (USD) General Hospital General Hospital (USD) Australia AUD 2,871 2,239 3,280 2,558 4,628 3,610 China CNY 4,200 588 5,100 714 5,700 798 Ireland Euro 2,400 3,360 3,500 4,900 3,500 4,900 India INR 18,000 360 30,000 600 27,000 540 Germany Euro 1,365 1,911 2,180 3,052 2,375 3,325 Scotland GBP 1,900 3,021 2,250 3,578 2,100 3,339 Singapore SGD 1,800 1,242 3,000 2,070 3,000 2,070 England GBP 1,531 2,434 2,514 3,997 1,733 2,755

Building Costs/m2 Hospitals 2008-2009 % change

Actual Prices 2008 Hospitals Day Centre 2008-2009 change Regional Hospital 2008-2009 change General Hospital 2008-2009 change Australia AUD 2,929 -2.0% 3,444 -4.8% 4,784 -3.3% China CNY 4,500 -6.7% 5,500 -7.3% 6,100 -6.6% Ireland Euro 3,000 -20.0% 4,500 -22.2% 4,500 -22.2% India INR na na na na na na Germany Euro 1,350 1.1% 2,160 0.9% 2,350 1.1% Scotland GBP na na na na na na Singapore SGD 2,000 -10.0% 3,500 -14.3% 3,500 -14.3% South Africa ZAR 4,500 22.2% 6,000 16.7% 7,500 13.3% England GBP 1,295 18.2% 2,639 -4.7% 1,740 -0.4%

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Building Costs - Schools

Building Cost/m2 Schools 2009

Australia AUD Primary & Secondary Primary & Secondary (USD) University University (USD) 1,915 China CNY 3,500 Dubai AED 8,200 Ireland Euro 1,230 India INR 10,000 Germany Euro 1,180 Scotland GBP 2,800 Malaysia Singapore SGD 1,500 South Africa ZAR 5,000 England GBP 1,590

1,494 3,104 2,421

490 5,200 728

2,214

1,722 2,200 3,080

200 25,000 500

1,652 1,385 1,939

4,452 2,300 3,657 3,000 840

1,035 2,500 1,725

600 6,000 720

2,528 2,200 3,498

Building Cost/m2 Schools 2008-2009 % change

Australia AUD Primary & Secondary 2008-2009% change University 2008-2009% change 1,953 -1.9% 3,169 -2.1% China CNY 3,800 -7.9% 5,700 -8.8% Ireland Euro 1,230 0.0% 2,500 -12.0% Ireland Euro na na na na India INR na na na na Germany Euro 1,170 0 1,370 0 Scotland GBP na na na na Malaysia Singapore SGD 1,500 0.0% 2,500 0.0% South Africa ZAR 4,500 11.1% 5,000 20.0% England GBP 1,553 2.4% 2,240 -1.8%

na na na na

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Building Costs - Car Parks

South Africa ZAR 3,500 420 4,000 480

Building Cost/m2 car parks 2009

Australia AUD Multi storey above ground Multi storey above ground (USD) Multi storey below ground Multi storey below ground (USD) 782 610 1,152 899 China CNY 2,000 280 4,500 630 Dubai AED 2,100 567 2,900 783 Ireland Euro 570 798 960 1,344 India INR 45,000 900 18,000 360 Germany Euro 135 189 375 525 18,000 576 Russia RUB Malaysia MYR 1,000 280 1,500 420 Singapore SGD 900 621 1,600 1,104 England GBP 450 716 850 1,352

Building Cost/m2 Car parks 2008-2009 % change

Australia AUD Multi storey above ground 2008-2009% change Multi storey below ground 2008-2009% change 805 -2.9% 1,182 -2.5% China CNY 2,200 -9.1% 5,300 -15.1% Dubai AED 3,000 30.0% 4,000 27.5% Ireland Euro 570 0.0% 960 0.0% na na na na Germany Euro 130 3.8% 370 1.4% na na na na na na na na Singapore SGD 1,200 -25.0% 2,000 -20.0% South Africa ZAR 3,200 9.4% 3,500 14.3% England GBP 437 3.0% 278 205.8%

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Building Costs - Airports

Australia AUD 9500 7800 China CNY 10300 1442 Ireland Euro 3900 5460 India INR 45000 900 Germany Euro 1090 1526 England GBP 3050 4850

Building Cost/m2 Airports 2009

Airport Terminal Airport Terminal (USD)

Building Cost/m2 Airports 2008-2009 % change

Australia AUD Airport Terminal 2008-2009 % change 10000 -0.05 Ireland Euro 4300 -9.3% Germany Euro 1080 0.9% England GBP 3150 -3.2%

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Exchange Rates
Exchange Rates

Kevin Burke Dublin kburke@hktt.ie Calvin Lim Jih Yoong Singapore yoonglim.jih@turntown.com Lorna Botha South Africa lbotha@turntown.co.za Helmut Westermann Germany helmut.westermann@turntown.com Peter ODonoghue peter.odonoghue@turntown.com Craig Scott Scotland craig.scott@turntown.co.England Kok Siong Chan Malaysia Kok-Siong.Chan@turntown.com Beate Reibold Moscow beate.reibold@turntown.com Nitin Khare Mumbai nitin.khare@turntown.com Coleen Kaefer Australia colleen.kaefer@turntown.com

1 1 1 1 1 1 1 1 1 1 1

USD GBP INR Euro Rand AUD CNY SGD RUB MYR UAE

= = = = = = = = = = =

1.00 1.59 0.02 1.40 0.12 0.78 0.14 0.69 0.03 0.28 0.27

USD USD USD USD USD USD USD USD USD USD USD

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Contributors

Special thanks to the contributors of this report Tino Chang - China shuhao.chang@turntown.com Elwyn Dixon - England elwyn.dixon@turntown.co.uk

..and apologies to anyone we may have missed

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