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YAKR WEEKLY BRIEFING - CONSTRUCTION Australian construction’s biggest headlines of the week that was, dot-pointed and delivered every week to keep you in the loop. Market Movements - Incitec Pivot Limited has listed its 58-hectare Gibson Island property in Brisbane for sale, aiming to relocate its distribution centre to the Port of Brisbane. The site, which ceased operations in January 2023, is expected to attract significant developer interest due to its strategic location and potential for redevelopment. Market speculation suggests the property could sell for over $250 million. Industry Trends - According to the Deloitte Business Outlook report, Tasmania's gross state product is predicted to shrink by 1.1% in 2025, primarily due to slow population growth affecting household spending and housing construction. This marks Tasmania as the only state forecasted to experience economic decline, with factors such as declining dwelling investment and low household consumption contributing to a weakening economic outlook. Corporate Developments  - Heidelberg Materials Australia announced the acquisition of the Hardcore Sands and Pink Lily Sands operations in Rockhampton. Chief Executive, Phil Schacht said this will provide the company with access to substantial sand reserves and extend their footprint in Australia. Environmental and Regulatory Updates - Work on Australia's largest renewable energy project, Snowy 2.0, has been suspended after 700 workers walked off due to serious safety concerns. The issues pertain to refuge chambers, which are designed for emergency shelter if primary safety systems fail. Workers, untrained in emergency procedures, highlighted that some chambers were inoperative and not maintained correctly. - SafeWork NSW has initiated an investigation into a partial building collapse that occurred on 22 January at a demolition site in Burwood, Sydney. The incident involved the collapse of a section of a multi-storey commercial property and affected scaffolding.

Iao Hon Sandwich Housing Project Commences Construction 30 December 2024 The Iao Hon Eighth Street sandwich housing project, developed by the Public Construction Bureau, has officially begun construction. Due to the ageing condition of the surrounding buildings near the project site, the Public Construction Bureau will install barriers along Iao Hon Seventh Street to facilitate pipeline relocation and soil improvement work, ensuring the safety of nearby structures during the construction process. The pipeline relocation and soil improvement works will be conducted in three phases over approximately four months. The bureau has engaged a third-party organisation to comprehensively monitor the surrounding buildings and roads. The sandwich housing project is located on state-owned land at the intersection of Cheong Sau Avenue and Iao Hon Eighth Street. The area around the project is equipped with several green recreational spaces for public use, including the Fourth Street Rest Area, Iao Hon Market Park, Wing Ning Square Rest Area, and Hac Sa Wan Park. These facilities cater to the community's needs for green and leisure spaces. Additionally, with the development of the Light Rail Transit (LRT) East Line, a reclaimed area along Avenida Norte do Hipódromo de Areia Preta will feature a green leisure zone exceeding 50,000 square metres. This will significantly increase recreational space available for residents. Cost of Iao Hon Sandwich Housing Project: MOP 1.2 billion.

The benefits of Modern Methods of Construction (MMC) are not fully understood, with negative perceptions about “prefabs” and “rapid-build houses” among consumers, developers, funders and insurers, according to a new report https://lnkd.in/ezi8wumc

Ground broken on zero-gas affordable homes development in Sheffield Esh Construction appointed by Sheffield City Council to deliver £18.9m Newstead project Work is underway on a £18.9 million zero-gas affordable housing development at Newstead in South East Sheffield. North of England contractor, Esh Construction, is delivering 77 new homes with enhanced sustainability credentials on behalf of Sheffield City Council. Designed by Peak Architects, the development will feature 36 one and two-bedroom apartments with communal gardens and balconies, alongside 41 two, three and four-bedroom properties with off street parking and gardens. All homes will be fitted with air source heat pumps instead of traditional gas boilers, as well as enhanced insulation and electric vehicle (EV) chargers. Esh Construction’s Operations Director, Simon Woodward, said: “This project underscores our commitment to delivering more sustainable and future-proofed housing that meets the needs of the community and supports the transition to greener living. “Marking the first affordable homes Esh will deliver for Sheffield City Council, we are proud to be supporting the council’s goal to develop energy efficient housing stock that will reduce the environmental impact and ensure long-term affordability for residents. We look forward to showcasing progress over the coming months.” Sheffield City Council has been awarded £1.3 million of funding from the South Yorkshire Mayoral Combined Authority’s Brownfield Housing Fund towards the Newstead development. https://lnkd.in/eAHM2B94

CR Construction (U.K.) Company Limited, a Chinese construction company, has signed a £210m building contract in Manchester with the city council and its Chinese joint venture partner. CR Construction has been appointed to build the first 895 homes of Red Bank Riverside – part of Manchester’s £4bn Victoria North regeneration project. The £210m contract is for three high-rise tower blocks reaching 20, 31 and 34 storeys-high, and a mid-rise nine-storey block. Manchester City Council is working on the regeneration project through Chinese developer Far East Consortium UK (FEC). FEC secured planning permission in August 2023 for 1,551 new homes, across plots known as NT02, NT03 and NT04, along Dantzic Street, together with a separate outline planning permission for a further 3,250 new homes within Red Bank. CR Construction is currently working on FEC’s neighbouring 634-home Victoria Riverside development, which is due to complete in early 2025. Following on from this, CR Construction will now deliver the next phase of Red Bank Riverside on plots NT02 & NT03 on Dantzic Street. The scheme has been designed by Hawkins\Brown Architects and Schulze+Grassov in collaboration with landscape architect Optimised Environments. Works are expected to start on site early next year, following the completion of the enabling works by Manchester City Council and its appointed contractor Bam, which is funded under the Housing Infrastructure Funding secured by the joint venture in 2019. FEC delivery director Nick Whitehouse at FEC, said: “The execution of this contract to deliver the next phase of Red Bank Riverside is another significant milestone for one of the country’s largest regeneration projects. We’re pleased to engage the market leading skills of CR Construction on this exciting project.” CR Construction (UK) Company Ltd, incorporated in the UK in 2018, is a subsidiary of China Zhejiang Construction Group. The company’s ultimate controlling party is Zhejiang State-owned Capital Operation Company Ltd, incorporated in China. Accounts filed earlier this month by CR Construction show that its turnover in the year to 31st December 2023 more than doubled to £56.2m (2022: £26.2m) with similar growth in pre-tax profit to £1.6m (2022: £627,000). Managing director Calum Kidd said: “CR Construction are delighted to expand upon our existing working relationship with FEC in the UK. Securing this project is another significant milestone for us as we further establish our business and presence in the UK market as we continue to deliver on our promise to be one of the best, providing added value to our clients, partners and stakeholders.” https://lnkd.in/e-hWnWVi

YAKR WEEKLY BRIEFING - CONSTRUCTION Australian construction’s biggest headlines of the week that was, dot-pointed and delivered every week to keep you in the loop. Market Movements - Following a period of record growth, Australia’s industrial real estate sector is stabilizing. According to Savills Australia's Spotlight Industrial Shed Briefing – released on Monday, rental growth has plateaued across Sydney and Melbourne, marking a shift to more balanced market conditions. - Australians’ confidence in the construction industry remains low due to concerns over building quality and rising insolvencies. The Australian Construction Consumer Survey, by Equifax reports that 47% of respondents believe conditions in the industry will worsen over the next year, highlighting a significant trust deficit Industry Trends - The BCI Construction Sentiment Report, released on November 1, 2024, shows strong investment interest in healthcare and life sciences construction, driven by demand for aged care facilities and support from government initiatives. This trend reflects a strategic pivot as firms focus on resilient sectors amid economic uncertainty - According to BCI Central’s Construction Industry Outlook for 2024, released on the 1st of November, 91% of firms report major labour shortages, especially for large-scale developments. To mitigate these delays, companies are increasingly self-performing tasks to reduce reliance on subcontractor Corporate Developments - Victorian construction firm Alchemy Construct appointed Andrew La Rocca as Managing Director, aimed at driving growth through new projects across Victoria - The NSW government released a gender diversity report highlighting progress and ongoing challenges for women in construction, with efforts underway to improve inclusivity and representation Environmental and Regulatory Updates - Western Australia introduced the Bid Contribution Policy for Major Projects on November 4, 2024, offering competitive incentives aimed at attracting high-value infrastructure projects. This policy is expected to enhance WA’s capacity for critical infrastructure developments

North East construction generates jobs and millions of pounds worth of economic output – Adderstone Living analysis reveals New analysis by a North East affordable house builder reveals the impact its construction activity has on supporting jobs and delivering millions of pounds worth of economic growth across the North of England. Jesmond-based Adderstone Living, which is working with social housing providers to deliver affordable new homes, says that its current North East and Yorkshire building sites - which will see hundreds of new homes delivered in the next 18 months - are producing millions of pounds (£39m) in economic output as well as supporting hundreds of construction jobs. Indeed, analysis shows 75% of on-site construction jobs are being undertaken by people who live less than a 20-mile drive to sites, creating and securing local employment opportunities across the region. The firm estimates that more than 300 people are currently working on its sites, which combined produce a total economic output of £35m in GVA (gross value added) during the build phases of affordable housing developments at places such as Eskdene Rise in Sunderland and Pease Way in Newton Aycliffe, County Durham. In excess of £45m is estimated to be spent on local subcontractors and suppliers who live and work within a 20-mile radius of these sites, while £2m is being spent on food and drink, leisure and entertainment in the local areas around each scheme. The firm’s analysis also reveals how modern construction techniques reduce the impact new house building activity has on the environment. https://lnkd.in/ec7N8DPN

Super article Vicky and Modular is the answer.

UTILE's modular construction framework looks to lower housing costs. Consortium model sees partnerships, market certainty, improving efficiency as keys to making prefab housing more affordable. via RENX Homes

Construction Sector Outlook: A Positive Shift in 2024 As we head through 2024, it’s great to see the New Zealand construction industry starting to stabilise and grow after some tough years. One of the biggest positives is that construction costs aren’t rising as fast anymore—it's the slowest increase we’ve seen in seven years. This is largely because the residential building sector has cooled down a bit, which is taking some pressure off the market and helping to balance things out. Material supply chains are also improving, with timber prices steadying and metal costs coming down a bit. This makes building projects more affordable and allows for better planning and smoother execution. On top of this, the latest ANZ Business Confidence Survey shows that business confidence has jumped to its highest in a decade, which is a big boost for everyone, including the construction sector. It’s a strong sign that businesses are expecting better times ahead. Of course, there are still some hurdles, like a small drop in new dwelling consents, but overall, the mood in the industry is positive. Plus, with more people moving to New Zealand, wage growth should settle down, helping to keep construction costs in check. Check out the Links in the comments.