News

At Conduit we keep abreast of the latest property and construction news and industry developments. The following news items contain articles written by us or provide links to other media publications.

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28th Aug 2008 China to build 50,000 skyscrapers within 20 years

Mining group Rio Tinto says Chinese building boom will continue to drive up materials demand

China will build up to 50,000 skyscrapers in the next 20 years, according to one of the world's largest mining companies.

Rio Tinto, the Mexican mining giant, has based its forecast of a continuing rise in demand for steel and materials partly on a predicted building boom in China, with the equivalent of 10 New Yorks to be built before 2025.

The group cited research by analyst McKinsey which concluded that China would have 221 cities with more than 1m inhabitants by 2025, with between 20,000 and 50,000 new skyscrapers. There are at present only 35 cities of that size in the whole of Europe.

Rio Tinto made the prediction as it reported half-year profits of $5.5bn (£3bn), up 55% from the same period last year. The Chinese market provided $4.9bn (£2.7bn) of Rio Tinto's $30bn (£16bn) revenue.

Prices in the international materials markets continue to rise. In the first half of 2008, Rio Tinto raised its iron ore price by an average of 86% compared with the same period last year. Copper was up 20%, gold higher by 38% and aluminium by 2%.

Tom Albanese, chief executive of Rio Tinto, said: “There is no question that we are living in an era of unprecedented demand for minerals and metals.”

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28th Aug 2008 The Rotating Tower in Dubai

The latest real estate development in Dubai is a tower with four rotating penthouses and a rotating villa that has its own car lift. The new tower will be located in Jumeirah Village South and will contain 72 units. The rotating units are able to rotate 360 degrees and residents can choose if they want the rotation to occur in three, six, 12 or 24 hours. You have to admit that’s definitely cool. The brain behind this development is Faisal Ali Moosa, who actually saw a series of rotating villas in Germany, and decided to create his own version in Dubai. A Saudi prince has already placed a DH 25 million bid on the single villa at the peak of the tower that has it’s own car lift and three parking spaces.

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28th Aug 2008 Al Habtoor Leighton eyes Dubai IPO

Dubai: Al Habtoor Leighton Group, the Dubai-based contractor that is constructing the Paris Sorbonne University campus in Abu Dhabi, plans to sell as much as 40 per cent of its shares in an initial public offering in May.

"The company doesn't need capital from the IPO, but it would benefit from the structure and demands that come with being a publicly traded company," Khalaf Al Habtoor, chairman of Al Habtoor Group, said in Dubai. "An IPO would guarantee the continuity of the company."

The Al Habtoor Leighton Group was established in September 2007 following the merger of Al Habtoor Engineering with the Gulf operations of Leighton International. Leighton is Australia's largest construction company and it is also controlled by Hoch-tief, Germany's biggest construction firm.

Source:
http://www.gulfnews....

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28th Aug 2008 The new benchmark in green living

A South Brisbane apartment development is expected to achieve a seven-star green energy rating - double the industry standard - thanks to a range of environmentally friendly design features.

The West Village project on Edmondstone Street, developed by ARIA, is one of nine national projects to take part in a trial of the Green Building Council's new standard for green apartment buildings.

One of the complex's defining features is a monitoring system that will allow residents to track their energy and water consumption in real time.

Source: http://www.brisbanet...

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19th Aug 2008 Dollar gains rekindle expat hopes

Dubai: The recent gains by the dollar against leading international currencies have rekindled hopes of expatriates living in the UAE that their hard-earned money will buy more in their home countries.

The dollar appreciated more than six per cent against the euro during the past five months as it gained about seven per cent against sterling.

The dollar's gains are reflected in the exchange rate of the dirham against other currencies due the dirham's peg to the dollar.

The Indian rupee gained eight per cent against the dirham in the past five months and the Pakistani rupee and Philippine peso gained 20 per cent and 11.5 per cent respectively.

The dollar hit a new six-month high against a basket of major currencies on Monday, benefiting from weakness in commodities and euro zone economies. The euro fell to a six-month low of $1.4645 in early Asian trade before recovering to $1.4717.

"Even though the rise [of the dollar against the euro] is not very much, every little change helps because when the dollar decreases in value, it hurts," said Markus Stebich, a German expatriate, told Gulf News.

During the past three years, UAE residents have been reeling under the rising cost of living and inflation hit an all-time high of 11.1 per cent in 2007.

The IMF estimates inflation will remain in double digits this year. In addition to the rising cost of living, most expatriates have been losing heavily due to declining exchange rates.

"The strengthening dollar has come as a big relief to expatriates who are earning in dirhams and saving and/or spending in their home currencies," said Sudhir Shetty, General Manager of UAE Exchange Centre.

The currency depreciation meant higher imported inflation in the UAE, aggravating the situation. With the high inflation and weak exchange rates, many expatriates who had fixed commitments such as college fees, mortgages and regular expenditures in their home countries were either forced to dip into their savings or borrow.

"When the dollar was depreciating, I had to cut down the amount of money I was sending to my family by nearly 50 per cent. Now that it's risen I can add even more to the original amount I send back home," said Aravindakshan P.G. Kurup, an Indian expatriate.

"While dollar has remained undervalued for long, the euro and sterling were overvalued and we expect the dollar to remain strong against these two currencies in the near term," said Shetty.

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15th Aug 2008 UK Construction industry is in recession, says RICS

Surveyors warn of continuing shrinkage as figures show private housing orders down 20% in a year

The RICS has said that the UK construction industry is in recession, after new figures revealed that private housing construction orders have fallen 20% in the last year.

Commenting on the construction market figures released today by the Office for National Statistics, RICS senior economist David Stubbs said: “These figures provide another clear signal that the construction industry is in recession.

“The on-going collapse of orders for new private homes accompanied by severe declines in orders for commercial and industrial buildings, makes it increasingly likely that the construction industry will continue to shrink throughout this year and into 2009.

“Employment levels are sure to drop further as firms react to the collapse in new business.”

Overall construction orders fell 7% for the year ended 30 June 2008, but there have been rises in public-sector housing and infrastructure orders.

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14th Aug 2008 Westpac August Residential Property Monitor

Westpac Property is pleased to provide the latest edition of the Residential Property Monitor.

This three page publication provides a one stop source of economic and market data relating to the residential markets around the country.

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13th Aug 2008 Recession? It’s more like a blip, says new CPA chairman

Adrian Barden forecasts bright future for construction – if the government does its bit

Adrian Barden is six weeks into his two-year tenure as chairman of the Construction Products Association and has a message for the economic doom-mongers.

While others warn of the worst economic backdrop for the industry since the mid-seventies, Barden says what is happening is a “correction”. He says: “We’ve seen blips like this before and we’ll get back on an even keel. The CPA is still forecasting a good environment in the UK.”

The 53-year-old former managing director of Wolseley UK is keen to avoid “talking ourselves into a crisis”. Barden, who lives in Dorset and spends five days a month in his unpaid role, bases his optimism on the continued flow of public sector and infrastructure work and huge projects in the pipeline such as the Olympics and Crossrail.

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11th Aug 2008 Rate cut in sight

Rate relief is on the cards for borrowers after the central bank indicated it expects slowing growth in the economy will allow it cut interest rates without risking an inflation break-out.

- Slow economic growth tipped
- Falling retail sales
- Expectations revised

"The evidence to date is that a significant moderation in demand is now occurring, and it is looking more likely that demand will remain subdued, and economic growth will be fairly slow, in the period ahead," the Reserve Bank of Australia said in its quarterly Statement of Monetary Policy today.

Full article - http://business.smh....

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8th Aug 2008 Croydon turns to Aussies to fill planning posts

Dearth of planners from the UK forces council to search for suitable candidates in Brisbane and Melbourne Four planning and building control officials have agreed to give up life in sunny Australia to take up new jobs in the marginally less beautiful London suburb of Croydon. fficials from the borough recently launched a recruitment drive on the other side of the world due to a shortage of appropriate staff back home. After conducting interviews in several Australian towns, four new recruits signed up for jobs in Corydon and are expected to arrive later this summer. Two of the successful applicants come from Melbourne, one from Brisbane and the other from Sydney. Planning staff are the second hardest for local authorities to recruit after social workers, and Croydon council says it turned to international recruitment after struggling for years to find permanent staff locally.

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7th Aug 2008 RICS Global Commercial Property Survey 2008

Attached is the Quarterly RICS Global Commercial Property Survey.They have introduced a range of additional questions since the beginning of 2008, which they feel provide a timely snapshot of market conditions and expectations.

The net balance methodology is applied in this survey to a range of indicators similar to the UK Housing market survey and the UK commercial market survey.

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7th Aug 2008 Lend Lease profits likely to halve as property values fall

Lend Lease, the Australian property group developing London's Olympic village, said full-year after-tax profits were likely to be almost halved after a big writedown in the carrying value of its UK property assets.

The company added that it expected a decline of as much as 15 per cent in net operating profits in the coming financial year, compared to the A$447m (US$417m) estimate when it reports full-year results for the year ended June in a little over two weeks.

Full article : http://www.ft.com/cm...

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4th Aug 2008 WSP to move hundreds of staff to Middle East

WSP’s chief executive has said the company will transfer hundreds of British staff to the Middle East if the economic downturn continues

Chris Cole said the consultant engineer could move up to 250 UK staff to the region within a year, joining its 800-strong workforce.

Speaking after announcing WSP’s results for the six months to 30 June 2008, Cole said: “We have transferred 100 people there from other parts of the world. It’s not difficult getting people to move when they get the same salary but pay no tax and their accommodation is free.”

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30th Jul 2008 Silk to thread Gulf nations together

£66 billion masterplan will include rail network linking Gulf nations
Madinat al-Hareer, or City of Silk is a colossal development-in-planning with an expanse of 250 sq km, roughly the same size as Scotland’s capital city, Edinburgh. Taking its name from the historic Silk Road, a route which connected Europe and China via the Middle East, the project will echo this sentiment creating a rail network linking Kuwait to Damascus, Baghdad, Iran and China, it has been announced. The project aims to act as a passageway from Kuwait to Israel and increase links between the two countries.

To read the rest of this article please visit: http://www.worldarch...

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30th Jul 2008 High rates bite residential building approvals

HOME building approvals remained in the doldrums in June as higher interest rates and the credit crunch weighed on the sector.

The total number of Australian houses and apartments approved for construction fell a seasonally adjusted 0.7 per cent in June from May, the Australian Bureau of Statistics said.

Economists had expected a small rise in June after approvals slumped 7.2 per cent in May. In trend terms, total approvals were down 0.9 per cent in June.

To view the rest of this article please visit: http://www.theaustra...

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30th Jul 2008 This recession will be different: Talent2 boss

Talent2 managing director Andrew Banks says he has seen a few recessions in his time and has a theory that the next downturn will be different.

Speaking from Shanghai today, Banks said that if a global recession did eventuate, its impact on employment and the recruitment industry would be far less severe than in previous downturns.

"This recession [will be] a bit different - when the slowdown bites there will not be a big spike in unemployment, and there won't be as significant a drop in vacancies, because we're at record lows in unemployment.

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29th Jul 2008 United wins $300m power, water projects

Diversified services company United Group Ltd has won $300 million in power and water projects spanning Australia and Asia.

The group's engineering and maintenance services division won the projects, which will help the company achieve its growth targets this fiscal year and beyond, the company said in a statement to the stock exchange.

To view the rest of the article please visit: http://news.smh.com....

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28th Jul 2008 Market forecast - cut-throat times (UK)

Soaring materials costs have driven up building costs and tender prices, but the economic slowdown is set to apply the brakes. Peter Fordham of Davis Langdon reports.

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24th Jul 2008 Crossrail has a tough journey ahead

So much energy has been expended on Crossrail that anyone would think it had been built already. No such luck.

After the latest three-year debating bout, the Bill for the cross-London rail project has finally won Royal Assent. As Stuart Fraser put it: "Now we come to the tough bit. The building of it and the funding of it."

To view the rest of this article please visit: http://www.telegraph...

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24th Jul 2008 Credit Crunch & The Way Forward

To read this interesting article concerning the Credit Crunch, it's effects and the future, please view the attachment.

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23rd Jul 2008 Skilled migrant visas up by 24pc

AUSTRALIA is continuing to look offshore for solutions to the deepening skills crisis, with new figures showing the controversial 457 visa program for temporary skilled migrants grew by almost a quarter last year.

Figures released by the Immigration Department yesterday showed the number of primary 457 applicants jumped from 46,680 in 2006-07 to 58,050 in 2007-08 -- about 24 per cent.

To read more of this article please visit: http://www.australia...

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23rd Jul 2008 Rate relief hopes dashed

Hopes for early interest rate relief have been dashed with the latest inflation figures coming in at the high end of expectations.

Bank fees led the way, with deposit and loan costs jumping 9.5% in the June quarter, while automotive fuel cost 8.7% more. Fruit and vegetable prices dropped 7.4%, and 6.5%, respectively, the Australian Bureau of Statistics said today.

To view the rest of this article please visit: http://business.smh....

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16th Jul 2008 Global construction inflation hits 30%

EC Harris reports strong cost rise in eastern Europe over the past year

Building costs have risen by as much as 30% in eastern European markets such as Poland and Bulgaria over the past year, according to the latest research from EC Harris.

The consultant’s annual global building costs survey shows that parts of eastern Europe are continuing to experience double-digit tender price inflation, partly fuelled by the enlargement of the EU. The research also shows that even in countries such as Serbia and Hungary, which have particularly low construction costs, prices are still almost twice those of Indonesia, Malaysia and Taiwan.

The UK is the fifth most expensive place in the world to build, with costs 20% higher than France and Germany. Denmark is the most expensive country, followed by Switzerland, Ireland and Sweden.

However, the research shows that cost escalation in western Europe is slowing down. Mike Pearce, EC Harris’ head of the property sector in Europe, said: “As the full repercussions of the US credit crunch begin to play out worldwide, the long-term effects for the construction industry remain uncertain.

“Building cost escalation in western Europe, the US, Australia and Japan is showing a marked slowdown, especially in the private residential and commercial sectors, where investors are increasingly cautious.”

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16th Jul 2008 What does a QS do??

Besides the credit crunch, the talk on everyone’s lips is about sustainability and implementing responsible construction practices for the benefit of future generations. But how can this be achieved if there is nobody there to do it?

To read the rest of this article please click on the attachment below:

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16th Jul 2008 Profit jumps at Laing O'Rourke

Contractor's profit rises 76% thanks to mega-projects and rapid growth overseas

Laing O’Rourke has reported a 76% leap in profit despite UK market conditions as it continues rapid growth overseas.

The contractor has grown turnover by 21.5% to £4.24bn in the year to 31 March 2008. This included a 23.8% leap in turnover in the Middle East to £0.42bn, and a 115% increase in Australasia to £0.58bn.

The company also reported a record order book of £10bn and said it had a strong cash position at £477m, with committed but unused banking facilities of £170m.

Tony Douglas, chief operating officer, said that the company was continuing with its strategy of 20% growth year on year, with much of this likely to come from the Middle East market where the firm’s schemes currently include work on the $20bn Al Raha Beach project in Abu Dhabi.

He said: “With mega projects of that scale, we will see continued growth in the area. The quality of the projects also allows us to direct some of our best talent to the region.”

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16th Jul 2008 Residential Property Monitor July 2008

This three page publication provides a one stop source of economic and market data relating to the residential markets around the country.

To view this article, please click on the attachment:

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16th Jul 2008 Economy slowing rapidly - survey

THE Australian economy is expected to record below trend growth for the rest of the year and into 2009, a survey shows.

The Westpac-Melbourne Institute leading index found Australia's annualised growth rate was 2.1 per cent in May, well below the long term trend of 3.9 per cent.

To view the rest of this article please visit: http://www.theaustra...

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16th Jul 2008 Rise unlikely, Reserve prepares to help out

THE Reserve Bank has signalled it is prepared to overlook a bumper inflation result next week and keep interest rates on hold in the near future.

And as the international financial crisis intensifies, top staff have outlined the bank's willingness to provide emergency funding to a financial firm if its collapse would cause economic harm - as in the recent cases of Bear Stearns in the United States and Northern Rock in Britain.

Want to read more? Visit: http://business.smh....

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16th Jul 2008 200,000 needed to work on RAK projects

An extra 200,000 construction workers are needed to complete all of the projects planned in the northernmost emirate of Ras Al Khaimah.

The claim has been made by property developer Rakeen in a report in UAE daily The National on Wednesday.

To view the rest of this article please visit: http://www.arabianbu...

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15th Jul 2008 Unions call for Labor IR revolt

UNIONS have ramped up their campaign to have the national building industry watchdog immediately scrapped, heavying Labor MPs across a number of states to break ranks with Kevin Rudd and Julia Gillard over the issue.

Unions in Victoria yesterday met the Deputy Prime Minister to demand the abolition of the Australian Building and Construction Commission, warning Labor faced a major industrial confrontation if any union official was jailed as a result of the watchdog's investigations.

To view the rest of this article please visit: http://www.theaustra...

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14th Jul 2008 WA leads national employment figures up

The resilience of Australia's jobs market has been highlighted with a spike in the number of people gaining work in June.

The Australian Bureau of Statistics reported this morning that almost 30,000 jobs were created in the month, more than wiping out the 19,000 that were lost in May.

To view the rest of this article please visit: http://www.thewest.c...

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11th Jul 2008 Aussies stop working holidays as UK economy worsens

FROM shearing sheds to London's financial district, Australians are quitting the UK in droves as Britain's economic downturn makes working holidays no longer financially viable.

For more than a decade, Aussies have shorn British sheep, entertained on television and in the theatre, staffed hospitals and pulled beers in pubs.

But latest figures show the Australian love affair with the UK is over: 2600 Aussies are returning home each month, compared with the 1750 a month that has been the average for eight years.

In 2005, more than 28,000 Australians applied for visas to work in the UK. This year, the figure is 13,500.

The exodus began with the economic downturn of the past nine months and a drop in the value of the pound. A year ago, it was worth $2.50; today, it's worth just $1.89.

TNT Magazine, the bible for Aussies living in London, has documented much of the situation through its feedback emails and online discussion boards.

Editor-in-chief Krysten Booth said there was no doubt the changing fortune of the UK economy was behind the exodus. "The exchange rate is hurting. People came here to travel and work professionally, and part of that is to make more money than they would at home," Booth said.

"A couple of years ago, the exchange rate was floating about $2.50 to the pound. Now there are a lot of people who are financially worse off than they were before they left Australia."

The soaring cost of living is also an issue.

Last week, the British Economic Research Institute found the annual housing, food, travel and other costs of a middle-class family of three in London had soared to almost £39,000 ($80,000) - an increase of more than £2000 ($4115)in four months.

The same standard of living costs the equivalent of £32,000 ($65,000) in Sydney and £28,000 ($57,500) in Los Angeles. Food cost has risen by an average of 6 per cent this year. Staples such as milk, butter, eggs and bread are up an incredible 60 per cent and petrol 22 per cent.

"I do think it's cyclical and people come and go," Booth said. "But when you get conditions as they are at the moment, that's going to push people back sooner than they would otherwise have gone."

Civil engineer Matt McQuaid arrived in 2004 and has worked on some of London's biggest construction projects, but will leave next month to take a job in Brisbane.

Mr McQuaid said the soaring cost of living in Britain and better job prospects in Australia prompted his return.

"A number of my closest friends are also moving home and the main reason for this seems to be job opportunities.

"We seem to have reached the age where we need to translate the experience we have gained into our long-term future."

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10th Jul 2008 Surprise jump in jobs

Australian employers added more jobs in June, stoking fears that rising inflation will remain a feature of the economy, complicating the Reserve Bank's battle against rising prices.

The labour force grew by 29,800 last month, seasonally adjusted, compared with a revised loss of 25,600 jobs in May. The addition was higher than the 10,000 jobs expected to be created by the 25 economists surveyed by Bloomberg. The sharp jump was attributed in part to a reduced sampling size used by Australian Bureau of Statistics.

''It's a positive shock but last month's figure worsened by a factor of about 6,000 jobs,'' said Peter Pontikis, group treasury strategist at Suncorp Banking. The original number was a loss of 19,700. ''The May number is down 26,000 and June is up 30,000 which if you add together you get a gain of 3000 jobs in two months.''

Of the jobs gained, 24,000 were full-time and the remainder part-time, the ABS reported.

''I don't think the RBA can increase rates from here,'' said Mr Pontikis, who expected a loss of 10,000 jobs in June.

The unemployment rate was 4.2%, seasonally adjusted, down from an unrevised 4.3% rate at the end of May. The participation rate to 65.3% from 65.2% in May. The total labour force was 10,715,700 in June, seasonally adjusted.

The dollar rose nearly half a cent on the announcement, as strength in the Australian economy made the Aussie more attractive. The Australian dollar traded up .42 of a US cent to 95.95 US cents.

Expectations for the amount of an RBA rate hike grew to 9 points after the jobs figures from 3 points before, according to Credit Suisse.

Jobs growth adds difficulty to the RBA's inflation fight, as the income earned by workers means more money to spend, and potentially more inflation. Inflation stands at 4.2%, higher than the 2%-3% band the central bank is comfortable with.

Underlying strength in the jobs market is being sustained by the mining and resources sectors. Those industries, located primarily in Western Australia and Queensland, continue to hire new workers as demand from Asian economies for iron ore and other materials remains brisk.

czappone@fairfax.com.au

BusinessDay

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10th Jul 2008 Dubai construction market stays strong

Gulf market forecast to keep booming despite looming challenge of oversupply

The Dubai construction and property market should remain strong this year in spite of likely oversupply, according to credit ratings agency Fitch Ratings.

In a report published today, the organisation said the outlook for construction in the Gulf in general is more positive than in western Europe.

It said strong GDP growth, rising income, soaring population and increasing mortgage availability are driving growth in Dubai, Abu Dhabi and Doha.

But the report said there are “challenges ahead”, notably the prospect of oversupply.

Bashar Al Natoor, a director of Fitch, said: “Many challenges have begun to surface, mainly the prospect of oversupply - if current delivery plans are met - and the risk of being unable to stimulate demand in view of massive development projects in the pipeline.

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8th Jul 2008 Persimmon to cut over 1000 jobs (UK)

More than 1,300 jobs have been cut at housebuilders Persimmon and Kier, Building.co.uk can reveal

The UK’s most profitable housebuilder Persimmon will announce next week it has slashed at least 1,000 jobs, while Kier Residential has said it is laying off 60% of its staff.

The news comes a day after Barratt laid off 1,000 people in response to the collapsing housing market, and two days after Taylor Wimpey announced it had laid off 900 people.

Persimmon’s cuts, which represent one-fifth of the builder’s 5,000-strong workforce, come following a month-long consultation process. When the consultation began the company said only that “several hundred jobs” were at risk.

A source close to the situation said: “Workers have been told around 1,000 jobs will go, and the special projects division will close.”

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8th Jul 2008 New orbital freeway plan for city

A CONTENTIOUS proposal to build the "missing link" in Melbourne's outer ring road network will be considered as part of a wider plan by the State Government to deal with Melbourne's transport chaos.

Premier John Brumby has confirmed that a freeway link through some of the city's most environmentally sensitive areas will be among a series of proposals considered in a far-reaching new transport plan.

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7th Jul 2008 Job ads fall in June

THE total number of job advertisements in newspapers and on the internet has fallen for the second straight month, a survey says.

The survey from ANZ Banking Group found the total number of jobs advertised in major metropolitan newspapers and on the internet fell by 3 per cent in June, to a seasonally adjusted 262,705 per week.

This followed a 1.7 per cent decline in May. The total number of job advertisements in June was 6.2 per cent higher than 12 months ago.

To view the rest of this article please visit: http://www.theaustra...

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7th Jul 2008 Building industry woes continue

Higher interest rates, tighter funding costs and weaker confidence levels continue to hamper the construction industry, a survey says.

The Australian Industry Group-Housing Industry Association performance of construction index (PCI) rose 3.4 index points in June to 40.3 points.

However, the index stayed well below the key 50-point level, which separates expansion from contraction, for the fourth straight month.

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4th Jul 2008 Climate fears halt coal plant construction (USA)

US judge revokes construction permit for not limiting carbon emissions, in landmark ruling

Construction of a £1bn ($2bn) coal-fired power station has been halted by a US court because its permit did not set limits on carbon emissions.

The court decision is the first application to an industrial plant of a landmark ruling by the Supreme Court last year recognising carbon dioxide as a pollutant under the Clean Air Act.

The decision, in the state of Georgia, could lead to a rethink on similar power stations schemes across the US and boosts hopes of stronger US legislation on climate change.

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4th Jul 2008 Construction activity falls fastest for 11 years (UK)

Housebuilding reaches new low on purchasing managers' index as construction falls for fourth month in a row

UK construction activity last month suffered the biggest monthly fall for 11 years while housebuilding fell to a new low, according to the Chartered Institute of Purchasing & Supply (CIPS).

The decline in overall construction activity in June, as measured on the CIPS Construction Purchasing Managers Index, was the biggest ever since the index began in April 1997 and the fourth monthly fall in a row.

The score for construction activity dropped from 43.9 in May to 38.8 in June.

The CIPS's housebuilding activity index, meanwhile, fell for the seventh month in a row, sliding from 32.7 in May to 25.6 in June, its lowest ever level on the CIPS index.

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3rd Jul 2008 Stocks close below 5000

The Australian share market closed a hair's breadth short of the 5000 mark today, after trading below that psychological barrier for most of the day.

Shares tumbled after the US markets swung into bear territory overnight and businesses in Australia fretted about the impact of high energy prices on their earnings.

To view the rest of this article, please visit: http://business.smh....

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3rd Jul 2008 How Corporate Real Estate Can Bridge the Talent Gap

This is the decade about talent – finding it, getting it, and keeping it. World-wide demographic shifts and immigration patterns are changing the familiar landscape of the workplace, creating cultural and generational patterns that have never existed before. Corporate real estate’s need to understand and respond to these changes is imperative to ensure the organisation’s competitive advantage.

To read more, please visit: http://www.corenetgl...

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2nd Jul 2008 Credit crunch hits site investigation

Downturns in the property and housing sector are starting to hit site investigation firms, contractors claim.

Contractors are blaming the downturn on tightening of lending in international credit markets for the decline in orders for geotechnical and environmental site investigations.

To view the rest of this article, please visit: http://www.qsweek.co...

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2nd Jul 2008 Trump Tower Tampa project goes belly up

Bankruptcy calls an end to Trump Tower construction
It was supposed to be 52-storey luxury condominium tower with dramatic waterfront views of Tampa’s Hillsborough River. But the Trump Tower Tampa never lived up to its hype. On Tuesday, the project’s developer, Simdag/Robel LLC filed for Chapter 11 bankruptcy protection in the Tampa, Florida courts.

To view the rest of this article, please visit: http://www.worldarch...

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30th Jun 2008 Wage inflation looms

Although wage growth through enterprise bargaining agreements slowed in the first three months of the year, there is anecdotal evidence wage inflation may be on the horizon.

On Saturday about 70 workers walked off the job at a Yarraville sugar refinery, owned by Refined Sugar Australia, seeking a 5% a year increase in annual pay for three years, higher than the 4% per year for three years offered by the company.

To view the rest of this article please visit: http://business.smh....

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26th Jun 2008 Nakheel eyes tallest tower in the world

Dubai: Nakheel is considering plans to outbuild rival Emaar Properties with a near mile-high tower, eclipsing the world's tallest building, the Burj Dubai.

Nakheel is looking at constructing a tower "higher than the competition", Chief Financial Officer Kar Tung Quek told the Reuters Global Real Estate Summit.

To read the rest of this article, please visit: http://www.gulfnews....

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26th Jun 2008 UAE ranks among world's top 10 locations to work

Dubai: The UAE is in the top ten preferred destinations for workers worldwide, according to the recent Relocating For Work survey released on Tuesday by Manpower Middle East, part of Manpower, a global employment services firm.

The survey, part of a worldwide research paper carried out by Manpower, asked 31,574 people in 27 countries about their preferred work destination, and the UAE ranked sixth.

To view the rest of this article please visit: http://www.gulfnews....

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25th Jun 2008 Buyers' market emerging for investors

Sydney and Melbourne's inner city areas have turned into buyers' markets for property investors willing to brave possible interest rate risks and inflation.

The upbeat message for residential property investors from RP Data's research director Tim Lawless comes as house prices soften nationally.

Rental yields are also well below the benchmark 5.0 to 5.5 per cent that investors usually look for, although the figures are now trending up.

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25th Jun 2008 Worlds first ‘building in motion’ ready in 2 years

Press were today treated to an introduction to the world’s first ‘building in motion’. Rotating Tower, designed by Italian architect David Fisher, is expected to move from design to reality in less than two years.

If you would like to read more of this article, please visit: http://www.worldarch...

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25th Jun 2008 May house sales down 37% as lending falls 56% (UK)

UK house sales collapse as credit crunch drives down mortgage lending

The number of house sales were down 37% in May compared with the same month a year earlier, dragged down by a slump in mortgage lending of 56% over the same period.

The latest figures represent a dip in house sales of 13% since April, with mortgage lending down by 20% in that single month.

Stamp duty registration figures from HM Revenue & Customs showed a slump from 115,000 sales in April to 100,000 in May, the biggest monthly fall since December 2006. RICS data has shown housing transactions at the lowest level since records began in 1978.

Falling sales are being linked to a predicted fall in house prices of perhaps 30%, and come in the wake of tighter mortgage lending caused by the credit crunch.

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25th Jun 2008 Steel prices set to rocket

Forecast 40% rise in steel price this year on the back of iron ore inflation will hit construction costs hard

Steel prices have been forecast to rise by as much as 40% this year, sending construction costs rocketing in the UK and worldwide.

The steel price rise is predicted on the back of soaring costs in two of the raw materials of the steelmaking process – iron ore and coking coal – which steelmakers will be forced to pass on to customers such as building materials producers.

Rio Tinto, the world’s second-largest mining company, has just agreed an average 85% increase in the price of iron ore, while coking coal recently tripled in price.

Analysts have consequently upgraded their predictions for steel price rises from around 20% earlier this year to as much as 40% for smaller buyers of steel.

Already last month Nippon Steel agreed a 30% price increase with automotive giant Toyota.

Pricing negotiations on iron ore under way at the world’s other largest mining company, BHP Billiton, are expected to conclude in line with Rio Tinto’s settlement.

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24th Jun 2008 Rio's ship comes in

CHINA'S steel industry has caved in to demands for huge increases in contract iron ore shipments from Australia.

The bonanza settlement - led by Rio Tinto - includes a first-time recognition that there should be a sharing of the so-called freight advantage Australian iron ore landed in China has over supplies from Brazil.

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24th Jun 2008 Nakheel in pact to develop coastal areas of Australia

Dubai: Nakheel on Monday said it has signed an agreement with the Gold Coast City Council of Australia to work together on a series of projects to promote sustainable coastal development.

To view more of this article please visit: http://www.gulfnews....

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23rd Jun 2008 Drydocks World - Dubai wins Health & Safety Initiative Award

Reconfirming its all-round operational excellence, Drydocks World - Dubai (the flagship company of Drydocks World, the Maritime arm of Dubai World), was presented with the Health and Safety Initiative Award at the inaugural Facilities Management Middle East Awards ceremony.

To view the full article please visit: http://www.ameinfo.c...

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23rd Jun 2008 Union warning on fatal fall, call for tougher penalties

BUILDING unions have demanded tougher penalties for employers responsible for serious workplace accidents, following a double fatality at a Gold Coast construction site.

To read more of this article please visit:

The deaths yesterday of workers Chris Gear, 36, and Steve Sayer, 52, have also prompted calls for urgent change to workplace health and safety regulations across the state.

The two men fell to their deaths from 26 storeys up on a high-rise complex at Broadbeach, as they patched concrete on a platform similar to those window cleaners use.

To view more of this article please visit the following link: http://www.news.com....

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23rd Jun 2008 Workers locked out in contract dispute

UP to 200 workers at three construction sites in NSW and Queensland have been locked out in a dispute between residential developer Meriton and construction company Bettaplex.

Bettaplex managing director Tony Di Carlo said his company suspended work on the sites on Tuesday because it was owed more than $1 million by Meriton.

To view more of this article please visit: http://www.news.com....

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23rd Jun 2008 Now credit crunch hits architects, too (UK)

Architects have become the latest group to be hit by the credit crunch, with two major firms making redundancies and a number of others freezing recruitment, writes Dan Stewart.

To view more of this article please click on the attached document below:

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20th Jun 2008 House prices 'to fall 9% in 2008' (UK)

HBOS, the UK's biggest mortgage lender, has forecast that UK house prices are set to fall by 9% this year.

The banking group, which owns the Halifax, had earlier predicted that the decline would be less severe.

In a trading update, HBOS said the housing market remained "subdued" and the number of transactions this year would be down by 45% on 2007's level.

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20th Jun 2008 Bankers predict three years of housing misery (UK)

Goldman Sachs warns housing market at start of 'deep downturn' as concerns rise about housebuilders' debt

A bloody week for housebuilders in the City is continuing, with Goldman Sachs predicting that the sector downturn could last for three years.

Goldman warned that the sector is "not out of the woods yet" and that the housing market is at the start of a "deep downturn".

As gloom over the sector intensifies, the Square Mile remains focused on fears that debt-laden housebuilders will breach their banking covenants as earnings slump.

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20th Jun 2008 Skyling News Briefing

To keep up to date with the happenings in Hong Kong, please visit the following link: http://www.skyline-t...

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19th Jun 2008 Softening job market in NSW, Vic

Two of Australia's resources-rich states, Western Australia and Northern Territory will continue to hire more employees than they lose in the next six months while New South Wales and Victoria employers have a bleaker outlook, according to Talent2 survey.

To view the rest of this article please visit: http://www.wabusines...

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19th Jun 2008 Emaar says international projects worth over $100b

Dubai: Emaar Properties has more than $100 billion worth of international developments in the pipeline, which could represent up to 70 per cent of the company's revenues by 2010, according to officials.

To view the rest of this article please visit: http://www.gulfnews....

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19th Jun 2008 Would you retire in Dubai?

Once Dubai was considered a place for expatriates to stay for a couple of years, make some money and then leave. Today, as the emirate continues to thrive, its expat community is also flourishing, with many not only staying longer but also making plans to retire here.

To view the rest of this article please visit: http://www.gulfnews....

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18th Jun 2008 Rates steady, but rents rampant

THE NUMBER of new houses and apartments under construction in NSW has slumped to its lowest yearly level in 38 years, with the weak property market likely to put even more pressure on rents.

But the Reserve Bank was the surprise bearer of good news yesterday, suggesting interest rates may remain on hold in the coming months.

To view more of this article please visit: http://www.smh.com.a...

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17th Jun 2008 Firm to develop 17 facilities in Saudi Arabia

Dubai: Shuaa Capital Saudi Arabia (SCSA) on Sunday said it has signed a master agreement with Rotana Hotel Management Corporation, a leading Pan-Arab hotel management company, to develop and manage 17 hotels and serviced apartments.

To view the rest of this article, please visit: http://www.gulfnews....

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17th Jun 2008 Dubai house prices up 42% in quarter

Dubai: House prices have increased 42 per cent in Dubai between the last quarter of 2007 and the first quarter of 2008, according to a report released on Tuesday by global property consultants Colliers International.

To read more of this article please visit: http://www.gulfnews....

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16th Jun 2008 API Elects New President

The Australian Property Institute (API) announced that Mr James Pledge had been unanimously
elected as National President at its Annual General Meeting.
Mr Pledge is a Fellow of the Institute and Managing Director of Knight Frank Valuations (South
Australia). He has wide experience in valuation consultancy, specialising in hotel and Leisure
assets.

To view more of this article please click on the link below:

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16th Jun 2008 UK Salary Survey for 2008

To view the Salary Survey, please click on the link: http://www.building....

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16th Jun 2008 Hays 2008 Consultants' salary and benefits guide

If your staff room looks like this it’s safe to say that employers are still having to do all they can to retain talented staff. David Parsley introduces this year’s consultants’ salary guide with a look at some of the quirkier perks on offer.

To read the rest of this article please click on the following link: http://www.building....

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16th Jun 2008 Quantity Surveyors best paid in UK

This is where the real money is. The average salary of a QS in the UK is higher than for any other employee in the industry. With senior central London staff earning, on average, £70,000, the profession’s only close competitor is building surveying.

Almost all ranks in the sector across the nation have experienced pay increases way above inflation in the past year, with most reporting hikes of more than 5%.

But could this be as good as it gets? Lee Grayland, a manager at Hays, says: ”In London salaries have almost reached a plateau. It will be interesting to see what happens over the next 12 months.”

Although the sector is experiencing higher demand from commercial clients there has been a noticeable slowdown in the residential sector.

Still, salaries are high when compared with most other construction industry professions, with the highest paid earning £67,000 in London and above £50,000 elsewhere across the country.

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16th Jun 2008 June Residential Property Monitor

The following document is a three page publication that provides a one stop source of economic and market data relating to the residential markets around the country.

To view this document, please click on the attachment below:

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16th Jun 2008 Westpac/AIQS BRIX Building Survey March 2008

Some points of interest from the attached document;March 2008 survey include:
- Fewer Quantity Surveyors expect workloads to continue rising over the next 6 months than in recent surveys.
- Workloads over the next 6 months are expected to increase in all phases of the construction cycle.
- Change in "before construction" demand for QS services is expected to be strongest in the infrastructure and engineering sectors over the next 6 months.
- Building costs are expected to continue rising at a rate of 6.0% over the next 12 months.
- The Reinforcement trade was identified as having had the largest cost change on a trade by trade basis.

To view the rest of the document, please click on the attachment:

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16th Jun 2008 Latest news from Hong Kong

See this link for the latest market news for construction in Hong Kong: http://www.skyline-t...

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16th Jun 2008 House prices tipped to soar

House prices are tipped to rise next financial year as Australia's fastest population growth in two decades outweighs the effect of higher interest rates, an economic forecaster says.

The BIS Shrapnel Residential Property Prospects 2008 to 2011 report also says that banks may offer more attractive lending rates in 2009, and that house prices in Sydney will remain the highest in the nation.

To view the full article, please visit: http://business.smh....

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