BUILDING COSTS
(Overall rates per m2 excl. VAT)

Third Quarter 2011  - 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 3 100 - 4 000

Commercial office park development on basement (with AC)

R 5 000 - 6 500

Prestigious office development on basements

R 8 500 - 13 000

External works services and landscaping for low rise developments

R 1 200 - 1 500

Retail Developments

Value centre type retail                                   

R 4 000 - 5 500

Convenience strip shopping centre

R 5 000 - 6 500

Regional shopping centre with enclosed malls

R 7 500 - 12 500

External works paving and services

R 1 400 - 1 700

Industrial Developments

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

R 3 000 - 3 800

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

R 3 300 - 4 000

Attached office buildings (no AC)

R 4 500 - 5 500

External works, pavings and services

R 1 200 - 1 500

Residential Developments

GASH housing by Contractor/Developer

R 4 500 - 6 000

Duplex houses/apartments

R 6 000 - 7 000

Luxury (cluster) houses

R 7 700 - 9 500

Retirement centres

R 6 500 - 7 500

External works and services

R 1 200 - 1 500

Leisure Developments

Thatched game lodge accommodation per m2

R 8 000 - 9 500

Budget type hotels per room

R 1 000 000

Luxury hotels per room

R  2 600 000

External works and landscaped environment per m2

R 1 650 - 2 150

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 - 2011

0.70%

Fourth quarter % increase per month

0.60%

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 - 2011

0.60%

Fourth quarter - % increase per month

0.50%