Singapore ranks 10th most expensive City for construction

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– Hong Kong is most expensive city in Asia for construction

– Ho Chi Minh City, Kuala Lumpur, Bangkok, Bangalore and Taipei among world’s cheapest cities for construction

Hong Kong is the most expensive Asian city to build in, followed by Macau and Singapore according to the International Construction Costs Index published today by Arcadis, the leading global Design & Consultancy firm for natural and built assets. Hong Kong trails behind New York and London, the top two most expensive cities in the global ranking.

The annual Arcadis index, which analyzes the relative cost of construction across 44 major cities, finds that strong currency performance and significant resource constraints have seen these ‘world city’ locations command premiums of up to 60 percent compared with many European locations.

However, this price inflation comes at a cost, with the viability of important commercial and public sector schemes put at risk in these cities as prices continue to soar. Furthermore, rising costs and the falling value of currencies could restrict demand from emerging market investors in these areas, potentially triggering a shift in interest to lower-cost cities in the long term.

Meanwhile, throughout 2015, every construction market worldwide saw overall cost inflation restricted due to the drop in commodity prices. Particularly with oil, growing uncertainty over prices will have a long-term impact on the global construction industry.

Alan Hearn, Head of Buildings Solutions, Asia, commented: “When it comes to development, the world’s major financial centers have always commanded a substantial premium. However, the sheer scale of demand-driven price increases this year in the likes of New York, London and Hong Kong has been remarkable. Add to this the recent global currency shifts and it is plain to see why building in these locations can cost up to sixty percent more than many European cities. The problem is that rapid inflation may soon see investors and even public sector bodies shut out as prices continue to spiral.”

ranking in Arcadis’ International Construction Cost Index are below:

Asia Ranking Global Ranking Market
1 3 Hong Kong
2 5 Macau
3 10 Singapore
4 19 Tokyo
5 20 Seoul
6 27 Shanghai
7 29 Brunei
8 30 Manila
9 35 Jakarta
10 40 Ho Chi Minh City
11 41 Kuala Lumpur
12 42 Bangkok
13 43 Bangalore
14 44 Taipei

Alan Hearn continued: “Singapore’s construction market has enjoyed a strong recovery since 2010. It is for this reason that the recent slowdown in residential and commercial markets represents something of a correction. In the private sector, both the residential and industrial sectors were relatively weak in 2015 and the office market also suffered due to oversupply.

Looking ahead, continued investment in road and rail can be anticipated as these aspects of infrastructure have not received as much investment in recent years in Singapore. For Asia, China’s economic slowdown and weakening demand in many cities, including Singapore and Jakarta, mean that growth in the region is expected to ease as we enter 2016.”

The full report can be downloaded here: arcad.is/ICC2015 

 

Iconic Parisian tower comes to life in Macau

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An artist’s rendering depicts The Parisian Macao, slated to open in the second half of 2016. Image courtesy of Sands China Ltd

An artist’s rendering depicts The Parisian Macao, slated to open in the second half of 2016. Image courtesy of Sands China Ltd

Standing next to another distinguishable Sands development, The Venetian Macao, the replica Eiffel Tower at the Parisian Macao is set to become both a landmark feature and a popular outlook, offering guests and visitors alike spectacular views of Macau’s bustling Cotai Strip.

The Macau Eiffel Tower, which is half the scale of the original, is a faithful replica of the famed 19th century counterpart in Paris, and retains many decorative features of its Paris cousin, including cornice scrolls, balustrades, gussets plates, lattices, staircases and mesh screens around the observation decks.

Global engineering consultants Aurecon was closely involved in the planning and design for the distinctive new structure. The company provided full structural engineering consultancy on the job, and helped manage the difficulties of maintaining an authentic design while addressing the challenges caused by extreme weather, a congested construction site, and the anticipated high number of visitors.

At the project’s outset, Aurecon provided the drafting of the tower using Revit software, which allowed the team to visually represent the complicated design connections in 3D. This made it easier to detect any potential challenges or clashes that might arise during construction even before building work had begun. As a result, this ensured time-consuming amendments at the shop drawing preparation or fabrication stage were avoided.

“The key to recreating this iconic landmark has been strong team work and the close collaboration between the design and construction teams,” says Dr Alecs Chong, Aurecon’s project leader on the Macau Eiffel Tower. Dr Chong says the close co-operation between the design and construction teams started at the earliest stages of the project, and has delivered efficiency improvements from the beginning.

Among the biggest challenges for the design team was addressing the issue of typhoons, which occur seasonally in Macau. In particular, the design team had to ensure it made the correct critical wind loading calculations for the tower in the event of a direct hit from a typhoon.

“We used the Equivalent Static Wind Loads (ESWL) approach developed for towers to determine the critical wind loads,” says Dr Chong. “We also ran a series of studies to investigate the wind-induced dynamic response at the tower’s top peak at various wind speeds. And we then looked at the subsequent impact on human comfort in terms of potential vibrations. Our thorough investigations and scenario planning allowed the project team to ensure not only an aesthetically pleasing and accurate design, but also a safe one.”

A luffing jib crane facilitated the modular construction method on site. Image courtesy of Aurecon.

A luffing jib crane facilitated the modular construction method on site. Image courtesy of Aurecon.

A further challenge for the design team was accounting for the very high number of visitors the attraction is likely to draw. In particular, says Dr Chong, they focused on the footbridge that will connect the tower with an adjacent casino complex. Aurecon and its partners also had to contend with how to get the large steel sections needed for the tower’s construction to the job site and, once there, how to assemble them.

“The port of Macau is neither large enough nor deep enough for the vessels that would normally deliver the oversized steel sections needed,” says Dr Chong. “As a result, the job had to request shallow-hulled vessels, but this limited delivery capacity. This, in turn, meant we had to plan the size of the delivery racks, to maximise delivery capacity and minimise delivery costs, which were estimated as being anything up to a quarter of the overall material cost.” And on the job site itself, there was a challenge presented by the selection of the tower crane needed to place the steel and other building materials.

The solution came in the form of a luffing jib crane, which can articulate its jib between the horizontal and near vertical angles. Using such a crane, and fitting it with a shorter jib, meant less of the lifting force was distributed laterally and more was directed down the crane’s mast. With a maximum hoisting capacity of 28 tons, the crane facilitated the modular construction method on site, overseeing the fast and safe installation of building elements.

Overall, says Dr Chong, being involved on the recreation of the Eiffel Tower on the Parisian Macao Integrated Resort has been a hugely challenging yet rewarding venture for the team at Aurecon. Visit www.aurecongroup.com for more.