Table of Contents
Executive Summary ......................................................................................................................................... 5
SWOT Analysis ................................................................................................................................................. 7
Australia Real Estate/Construction SWOT ............................................................................................................................................................ 7
Australia Political SWOT ...................................................................................................................................................................................... 8
Australia Economic SWOT .................................................................................................................................................................................... 8
Australia Business Environment SWOT ................................................................................................................................................................. 9
Real Estate Market Overview ........................................................................................................................ 10
Real Estate Market Analysis - Office ........................................................................................................... 15
Rents And Yields ....................................................................................................................................................................................................... 15
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 15
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 15
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 15
Industry Forecast Scenario ....................................................................................................................................................................................... 16
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 16
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 16
Real Estate Market Analysis - Retail ............................................................................................................ 17
Supply And Demand .................................................................................................................................................................................................. 17
Rents And Yields ....................................................................................................................................................................................................... 17
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 17
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 18
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 18
Industry Forecast Scenario ....................................................................................................................................................................................... 18
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 18
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 19
Real Estate Market Analysis - Industrial ..................................................................................................... 20
Rents And Yields ....................................................................................................................................................................................................... 20
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 20
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 20
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 20
Industry Forecast Scenario ....................................................................................................................................................................................... 21
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 21
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 21
Forecast Scenarios ........................................................................................................................................ 22
Construction And Infrastructure Outlook ................................................................................................................................................................. 22
Table: Australia Construction And Infrastructure Industry Data, 2009-2016 ..................................................................................................... 22
Table: Australia Construction And Infrastructure Long-Term Forecast, 2014-2021 ........................................................................................... 23
Macroeconomic Outlook ........................................................................................................................................................................................... 32
Table: Australia - Economic Activity, 2011-2016 ............................................................................................................................................... 35
Real Estate/Construction Risk Reward Ratings ......................................................................................... 36
Real Estate/Construction Risk/Reward Ratings ........................................................................................................................................................ 36
Table: Asia Pacific Real Estate Risk/Reward Ratings.......................................................................................................................................... 36
Australia's Business Environment ............................................................................................................................................................................ 36
Table: BMI Business And Operation Risk Ratings ............................................................................................................................................... 37
Institutions ........................................................................................................................................................................................................... 37
Table: BMI Legal Framework Rating .................................................................................................................................................................. 38
Infrastructure ....................................................................................................................................................................................................... 39
Table: Labour Force Quality ............................................................................................................................................................................... 41
Market Orientation .............................................................................................................................................................................................. 42
Table: Asia - Annual FDI Inflows ....................................................................................................................................................................... 43
Table: Trade And Investment Ratings .................................................................................................................................................................. 44
Table: Top Export Destinations, 2002-2009 ........................................................................................................................................................ 47
Operational Risk .................................................................................................................................................................................................. 47
Competitive Landscape ................................................................................................................................. 49
Company Profiles ........................................................................................................................................... 54
Bovis Lend Lease (BLL) ....................................................................................................................................................................................... 54
Brookfield Multiplex ............................................................................................................................................................................................ 56
Laing O'Rourke ................................................................................................................................................................................................... 58
Leighton Holdings ............................................................................................................................................................................................... 59
Mirvac ................................................................................................................................................................................................................. 61
Stockland Group .................................................................................................................................................................................................. 63
Demographic Data .......................................................................................................................................... 65
Table: Australia's Population By Age Group, 1990-2020 ('000) ......................................................................................................................... 66
Table: Australia's Population By Age Group, 1990-2020 (% of total) ................................................................................................................. 67
Table: Australia's Key Population Ratios, 1990-2020 ......................................................................................................................................... 68
Table: Australia's Rural And Urban Population, 1990-2020 ............................................................................................................................... 68
BMI Methodology ........................................................................................................................................... 69
How We Generate Our Industry Forecasts ............................................................................................................................................................... 69
Construction Industry .......................................................................................................................................................................................... 70
Bank Lending ....................................................................................................................................................................................................... 71
Real Estate/Construction Business Environment Rating ...................................................................................................................................... 71
Table: Weighting Of Indicators ........................................................................................................................................................................... 72
Sources ................................................................................................................................................................................................................ 74
SWOT Analysis ................................................................................................................................................. 7
Australia Real Estate/Construction SWOT ............................................................................................................................................................ 7
Australia Political SWOT ...................................................................................................................................................................................... 8
Australia Economic SWOT .................................................................................................................................................................................... 8
Australia Business Environment SWOT ................................................................................................................................................................. 9
Real Estate Market Overview ........................................................................................................................ 10
Real Estate Market Analysis - Office ........................................................................................................... 15
Rents And Yields ....................................................................................................................................................................................................... 15
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 15
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 15
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 15
Industry Forecast Scenario ....................................................................................................................................................................................... 16
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 16
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 16
Real Estate Market Analysis - Retail ............................................................................................................ 17
Supply And Demand .................................................................................................................................................................................................. 17
Rents And Yields ....................................................................................................................................................................................................... 17
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 17
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 18
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 18
Industry Forecast Scenario ....................................................................................................................................................................................... 18
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 18
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 19
Real Estate Market Analysis - Industrial ..................................................................................................... 20
Rents And Yields ....................................................................................................................................................................................................... 20
Table: Historic Rents - 2011-2012 (AUD per m2/month) .................................................................................................................................... 20
Table: Net Yield, 2011-2013 ................................................................................................................................................................................ 20
Table: Terms Of Rental Contract/Lease - H112 .................................................................................................................................................. 20
Industry Forecast Scenario ....................................................................................................................................................................................... 21
Table: Forecast Rents - AUD per m2/month ........................................................................................................................................................ 21
Table: Forecast Net Yield, 2010-2017 ................................................................................................................................................................. 21
Forecast Scenarios ........................................................................................................................................ 22
Construction And Infrastructure Outlook ................................................................................................................................................................. 22
Table: Australia Construction And Infrastructure Industry Data, 2009-2016 ..................................................................................................... 22
Table: Australia Construction And Infrastructure Long-Term Forecast, 2014-2021 ........................................................................................... 23
Macroeconomic Outlook ........................................................................................................................................................................................... 32
Table: Australia - Economic Activity, 2011-2016 ............................................................................................................................................... 35
Real Estate/Construction Risk Reward Ratings ......................................................................................... 36
Real Estate/Construction Risk/Reward Ratings ........................................................................................................................................................ 36
Table: Asia Pacific Real Estate Risk/Reward Ratings.......................................................................................................................................... 36
Australia's Business Environment ............................................................................................................................................................................ 36
Table: BMI Business And Operation Risk Ratings ............................................................................................................................................... 37
Institutions ........................................................................................................................................................................................................... 37
Table: BMI Legal Framework Rating .................................................................................................................................................................. 38
Infrastructure ....................................................................................................................................................................................................... 39
Table: Labour Force Quality ............................................................................................................................................................................... 41
Market Orientation .............................................................................................................................................................................................. 42
Table: Asia - Annual FDI Inflows ....................................................................................................................................................................... 43
Table: Trade And Investment Ratings .................................................................................................................................................................. 44
Table: Top Export Destinations, 2002-2009 ........................................................................................................................................................ 47
Operational Risk .................................................................................................................................................................................................. 47
Competitive Landscape ................................................................................................................................. 49
Company Profiles ........................................................................................................................................... 54
Bovis Lend Lease (BLL) ....................................................................................................................................................................................... 54
Brookfield Multiplex ............................................................................................................................................................................................ 56
Laing O'Rourke ................................................................................................................................................................................................... 58
Leighton Holdings ............................................................................................................................................................................................... 59
Mirvac ................................................................................................................................................................................................................. 61
Stockland Group .................................................................................................................................................................................................. 63
Demographic Data .......................................................................................................................................... 65
Table: Australia's Population By Age Group, 1990-2020 ('000) ......................................................................................................................... 66
Table: Australia's Population By Age Group, 1990-2020 (% of total) ................................................................................................................. 67
Table: Australia's Key Population Ratios, 1990-2020 ......................................................................................................................................... 68
Table: Australia's Rural And Urban Population, 1990-2020 ............................................................................................................................... 68
BMI Methodology ........................................................................................................................................... 69
How We Generate Our Industry Forecasts ............................................................................................................................................................... 69
Construction Industry .......................................................................................................................................................................................... 70
Bank Lending ....................................................................................................................................................................................................... 71
Real Estate/Construction Business Environment Rating ...................................................................................................................................... 71
Table: Weighting Of Indicators ........................................................................................................................................................................... 72
Sources ................................................................................................................................................................................................................ 74
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