The Singapore stock exchange takeover of its Australian counterpart is "good for Australia, bad for us," says an adviser to John Key.

Fletcher Construction will run the Earthquake Commission's (EQC) project management office to oversee the rebuild after the Canterbury earthquake, a contract worth around $1 billion.

Fletcher Building, expects the residential property market to pick up next year when rebuilding begins in Canterbury and the government's response to 'leaky homes' comes into effect.

Fletcher Construction says it is moving against Auckland developer Nigel McKenna over a debt for building Wellington's Holiday Inn.