Who takes the lead for cost of construction in the world’s leading cities?

 As the global market heats up, a continued focus on productivity and cost reduction is needed. With constrained capacity in many markets, the only way to deliver on global aspirations will be by doing things differently and delivering more with available resources. 

Australian cities are a key part of the improving economic story as population growth, particularly in Sydney, Melbourne and Brisbane, stays strong. Urbanization not only continues to fuel buoyant commercial, retail and residential construction in the major cities, it is underpinning billions of dollars of infrastructure investment by all levels of government focusing on rail, road and freight over the next decade.

The relative ranking of Australian cities against 47 other global cities in the latest Arcadis International Construction Costs report reflects that growth narrative, with Brisbane, Sydney and Melbourne sitting in the top half of those analysed for cost of construction. 

Australia’s construction costs have been traditionally high in comparison to other global cities due to the country’s geographic isolation. Compared to Europe and the Americas, there is far less private sector competition to complete construction work and these companies import most of their construction materials, which can fluctuate in price significantly due to the impact of the strength of the Australian dollar and taxes. The question remains however regarding how best to manage these costs in today’s market, and with increasing digital capabilities, are these truly being utilised in the most effective way? 

To find out where your city sits in the relative ranking, and for a more in-depth market review of Sydney, Melbourne and Brisbane, download the report at www.arcadis.com/ICC2018.