BUILDING COSTS
(Overall rates per m2 excl. VAT)

Second Quarter 2010  - Gauteng Region

The following information is provided  to indicate the current square metre costs of a range of basic or common buildings in the industry. The rates are approximate and can vary according to the circumstances of the project. Rates should be used with extreme caution. Descriptions are abbreviated and if information is not stated specifically, the lowest industry standard specification is implied.

The rates include preliminaries but exclude external works (indicated separately), escalation to start and during construction, professional fees and finance costs.

Office Developments

Underground parking basements including foundation

R 2 750 - 3 650

Commercial office park development on basement (with AC)

R 4 000 - 5 500

Prestigious office development on basements

R 8 000 - 12 000

External works services and landscaping for low rise developments

R 1 050 - 1 300

Retail Developments

Value centre type retail                                   

R 3 500 - 4 500

Convenience strip shopping centre

R 4 400 - 5 600

Regional shopping centre with enclosed malls

R 6 500 -  12 000

External works paving and services

R 1 200 - 1 500

Industrial Developments

Warehousing with 6 m height (over 2 000 m2) including ablutions

R 2 500 - 3 200

Medium duty factory building with 8 m height (over 2 000 m2)

R 2 750 - 3 600

Attached office buildings (no AC)

R 4 000 - 5 000

External works, pavings and services

R 1 050 - 1 300

Residential Developments

GASH housing by Contractor/Developer

R 3 900 - 5 000

Duplex houses/apartments

R 5 000 - 5 900

Luxury (cluster) houses

R 7 100 - 8 600

Retirement centres

R 5 600 - 6 200

External works and services

R 1 050 - 1 300

Leisure Developments

Thatched game lodge accommodation per m2

R 7 000 - 8 500

Budget type hotels per room

R  850 000

Luxury hotels per room

R  2 300 000

External works and landscaped environment per m2

R 1 500 - 1 750

ESCALATION FORECASTING

Pre-contract escalation

This is escalation prior to the start of a building on site. It is related to competitive building rates and monitored nationally by the BER (Bureau of Economic Research)

Monthly projected pre-building cost escalations

Third quarter % increase per month

0.80%

Fourth quarter % increase per month

0.75%

Escalation during construction

This is escalation during the construction period and usually monitored by the BCAC Haylett indices published by JBCC

Monthly projected during building cost escalations

Third quarter - % increase per month

0.60%

Fourth quarter - % increase per month

0.60%