Cordell Construction Monthly - May 2017

DATA FOR APRIL 2017

Construction Monthly

www.corelogic.com.au/cordell

Pipeline - Australia

5%

12%

25%

29%

% 39

% 35

4%

7%

% 12

8%

12 %

13 %

1,594

$7.64 billion

Number of Projects

Estimated Value

Civil Engineering

Commercial

Community

Apartments & Units

Industrial

Median Project Value Civil Engineering

$550,000

Commercial

$1,395,000

Community

$1,000,000

Apartments & Units

$1,200,000

Industrial

$800,000

Mining

$2,000,000

2 | Cordell Monthly Construction Update April 2017

Mining

Sheet 1

Pipeline - Location

Sheet 1 Cifer

APARTMENTS & UNITS

Apartments & Units

Civil Engineering

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Sheet 1

Sheet 1

Cifer

COMMERCIAL

Commercial

Community

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Industrial

Mining

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Cordell Monthly Construction Update April 2017 | 3

Moving into construction - Australia

4% 5%

8%

23

12%

%

1 7%

25

%

%

% 39

12

9%

25%

23 %

565

$2.38 billion

Number of Projects

Estimated Value

Civil Engineering

Commercial

Community

Apartments & Units

Industrial

Median Project Value Civil Engineering

$700,000

Commercial

$900,000

Community

$1,500,000

Apartments & Units

$1,382,000

Industrial

$810,000

Mining

$3,000,000

4 | Cordell Monthly Construction Update April 2017

Mining

Sheet 1

Moving into construction - Location Sheet 1

Cifer

APARTMENTS & UNITS

Apartments & Units

Map based Sheet 1 on Longitude (generated) and Latitude (generated).

Civil Engineering

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Cifer

COMMERCIAL

Sheet Map 1 based on Longitude (generated) and Latitude (generated).

Commercial

Community

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INDUSTRIAL

Industrial

Mining

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Cordell Monthly Construction Update April 2017 | 5

New South Wales Applications for projects in NSW were relatively subdued in the month of April in both volume and value. April activity may have been dampened by various holidays over the month, however soft housing growth conditions also suggests a market slowdown.

However, residential appetite continues on the fringe of the Sydney CBD, with the masterplan concept submitted for a mixed-use development and residential subdivision along Terry Road in Box Hill. The concept facilitates the staged subdivision and development of the site, comprising the creation of 12 development blocks ranging from 0.88 hectares to 3.38 hectares with the potential dwelling yield of 1,452 dwellings.

Previously, other developments around the fringe of the Hills Shire have generated community and local government concern1. Local council is committed to limiting residential density where the area is not well serviced by public transport.

In the premier market, China’s Changfa Investments acquired a development site with approval for 139 units in Leichhardt. The company also plans to develop further luxury residential projects across Australia.

Pressure on naval operations has prompted a remediation proposal on the Garden Island naval base in Sydney. This site is set to undergo a $213 million upgrade. The proposal is subject to Parliamentary Standing Committee approval. If approved, it would see the demolition of the existing oil and cruiser wharves.

In its place construction will commence of a new, single 372 metre-long wharf and dredging of the seabed.

The increased prison population in New South Wales has demanded the expansion of correctional facilities.

CPB Contractors have been selected to design and construct the $220 million upgrade of Junee Correctional Centre. The build will incorporate 480 new beds, new maximum security and administration buildings, and refurbishment of existing infrastructure.

The expansion of existing facilities, rather than the establishment of new ones, increases capacity of correctional facilities with less community resistance than trying to establish new sites.

Australian Capital Territory As local planners pursue rejuvenation of the Northbourne Avenue corridor in Canberra, Doma Group won the contract to develop the former Dickson Motor Vehicle Registry site. The proposal comprises 4 buildings, including a six storey, 13,000 square metre office tower. The office tower will be leased back to the ACT government to accommodate more than 1,000 public servants. Also included in the development is the establishment of approximately 280 apartments, a 90-place child centre and public open spaces.

Doma Group has also been selected as the successful developer for the Yarralumla Brickworks site, with 380 new dwellings planned. The ACT is currently enjoying high residential yields, with the CoreLogic hedonic index showing almost 10% growth in Canberra dwellings over the 12 months to April. Combined with strong economic growth in the December quarter of 1.6%, further construction development is likely to be incentivised in the region.

TFE Hotels will be the operator for a new 4.5 star Vibe hotel in Sydney’s Sussex Street. The hotel was designed

by WMK, and will comprise 145 New York-themed rooms with rooftop bar & infinity swimming pool.

1 Machado, L, November 29, 2016, ‘Council unites to oppose Hills development over fears of ghetto-style housing density’, Rouse Hill Times, accessed online at: http://www.dailytelegraph.com.au/newslocal/rouse-hill-times/council-unites-to-oppose-hills-development-over-fears-of-ghettostyle-housing-density/ news-story/f2cdbbefbb2e5374a1ac36e1a0bc0391 2 The design can be viewed here: http://economicdevelopment.vic.gov.au/transport/rail-and-roads/public-transport/frankston-station-precinctredevelopment#utm_source=economicdevelopment-vic-gov-au&utm_medium=vanity-url-301ssredirect&utm_content=frankston-station-precinctredevelopment&utm_campaign=transport

6 | Cordell Monthly Construction Update April 2017

Victoria The contract has been awarded to Nicholsons to construct the Ararat Arts Precinct. A further $1.5 million for the project has been announced, on top of the existing $5.2 million investment, bringing the total value of the project to $6.7 million. The project includes construction of a new public entrance, additions and alterations to the art gallery and performance area, upgrade to the public amenities, a new café and bar and landscaping. Construction is expected to begin this month.

The West Gate Tunnel project has had the design finalised and a contractor appointed for construction.

A consortium has been appointed comprising of John Holland and CPB Contractors. After construction, the tunnel will be Victoria’s longest tunnel at 4 kilometres.

This will be an alternative travel route for commuters rather than the Westgate Bridge. The project is expected to create around 6,000 new jobs during the construction period with local products also being sourced for the project. Works also include cycling and walking paths. Construction is due to commence in early 2018, however this will be dependent upon Environment Effect Statement approval.

The $88 million Victoria State Library project has been designed by Architectus and Danish Architects Schmidt Hammer Lassen. However, they had some help from the school children of Victoria. Extensive consultation with children and community groups has helped create a dream library for children and toddlers. The project will now include a tree house style reading and play area, with a ground level running track. Construction is due to commence in late 2017, with completion expected by 2020.

The new Frankston Station design has been announced this month as part of the $63 million upgrade2. The national design competition for this project was awarded to Genton Architecture. Construction works on Young Street are underway as part of the revitalisation project, with construction to begin on the new station towards the end of 2017.

Latrobe Regional Hospital has received $2.62 million in funding this month from the new Regional Health Infrastructure Fund. The funding will be used to construct additional special care costs for infants to children aged 12. The construction works will include refurbishment of paediatric rooms and provide areas for staff and visitors.

Queensland Expressions of interest from the renewable energy sector are being sought by Economic Development Queensland, for the flagship Aldoga Renewable Energy Project. The site is located adjacent to Powerlink’s Larcom Creek substation. It has been identified as suitable for a largescale, renewable energy project with the potential to support 450 megawatts of capacity, which can connect

directly to the grid. The substantial scale of this project will also contribute significantly to the Queensland Government’s target of achieving 50 per cent renewable energy by 2030.

A prominent development site in Manning Street, South Brisbane, is up for sale by expressions of interest. The site has development approval for a 30 storey tower with 374 units and retail designed by Elenberg Fraser.

In its 2016 Pain and Gain Report, CoreLogic reported that 20% of units sold in Queensland sold below their initial contract price. With an unprecedented level of apartments currently under construction, it is no surprise that some developers will opt out of commencing unit projects. This could ease vacant land or development site prices over the next quarter.

Tasmania Tasmania saw 64 development applications submitted with an associated construction value of $80 million.

Many of the applications were in the civil engineering space, and included roads upgrades, transport works and telecommunications.

The seven mile beach sport and active recreation precinct project is moving along this month with consultancy tenders advertised for the preparation of the development application and funding applications.

The proposed precinct will provide a sporting recreation area in the Clarence City Council area if funding is received. The site has been provided to Council from the state government and a master plan was completed by Inspiring Place Pty Ltd.

South Australia Expressions of interest for the proposed 250MW government-owned gas power plant have now closed. 31 registrations were received including applications from Australia, China, Malaysia, Singapore, France, Finland, Spain and the United Kingdom. To complement the SA Energy Plan, a large battery development has also attracted 90 registrations. All submissions are now being evaluated.

The City of Holdfast Bay Council is proposing to redevelop the Glenelg Jetty and surrounding precinct areas. A business case study has been completed and concept designs are currently in progress. The vision for the redeveloped site includes a 30 metre by 300 metre jetty, a boutique hotel, public event and leisure spaces, a ferry and seaplane terminal, luxury yacht moorings and a marine research centre. Commencement of a staged construction is expected within two to three years.

Further funding will be required.

The former Trims site at 322-336 King William Street, corner of Carrington Street, will be known as Echelon.

Karidis Corporation is developing two apartment towers of up to 31 storeys, with over 120 apartments commencing from Level 20. Below the residences will

Cordell Monthly Construction Update April 2017 | 7

be offices, various retail and food outlets and facilities.

Marketing is currently in progress with a display unit located nearby. Tenders are expected to be called in the third quarter of 2017.

Built Environs Pty Ltd is expecting to commence construction in May, of ‘U2 on Waymouth’. The 25 storey, 287 apartment building with a restaurant and cinema has been delayed due to archaeological discoveries. Because of the historical significance of the site, the developer (Datong) had to commission an archaeological report and evaluation undertaken by EBS Heritage.

The 21 day dig was completed recently and revealed a tavern, a tobacco importer’s warehouse, a horse bazaar and a deep well. Artefacts covering more than 150 years of history will be catalogued. Some items will be returned to the developer to display in the new apartment building when it is completed. The rest will be handed over to the SA Museum.

include fitout of the new site as well as stock for the store. Initial tenders have been called for the Northern Territory Government’s ‘Room to Breathe’ program. The initiative is to build additional living spaces into existing houses to improve remote housing, which will increase residential development opportunities in the Northern Territory.

The $10 million program has been fast tracked this financial year to get ‘Room to Breathe’ off the ground.

The program is spread across 24 remote communities which have been identified as having high rates of overcrowding. Where possible, local indigenous businesses are being targeted for involvement in the development.

Western Australia Finbar developers have submitted an application to construct 440 apartments in Applecross. If approved by council, the development would see construction of three residential towers containing 1, 2 and 3 bedroom apartments for offer. The development will include commercial spaces on the ground floor. The project is currently awaiting a decision from Melville Council.

The Roe 8 project in Western Australia is back in the news again this month with the newly elected McGowan Labour Government in negotiations with Main Roads and Alliance Partners. The contract is going to be revised to start alternative projects to reduce traffic congestion in Perth. The Perth Freight Link project will no longer proceed under the new Labour Government, and after the negotiation process is complete with the Perth Freight Link Consortium, the government will announce new projects to ease the traffic congestion.

Northern Territory CoreLogic captured 52 development applications across the Northern Territory submitted in the month of April, at an estimated value of $249 million. Much of the value was driven by plans for a $58 million site development of a Bunnings Warehouse in Palmerston. The cost estimates

Mining A Chinese company has been awarded the contract to build the port and rail component of the $6 billion Balla Balla project. BBI Group has signed an understanding with China State Construction Engineering Corporation.

The project is now awaiting a final investment decision and construction is expected to commence in 2018.

Data Disclaimer In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to CoreLogic for the supply of such information.

Aggregate value estimates and median project values are based on raw data from the Cordell Connect database. Data from Cordell Connect includes project values as advised by the project managers, or are estimates provided by Cordell researchers.

8 | Cordell Monthly Construction Update April 2017

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