Property & Planning
Supply Chain Issues Trigger Sharp Rise in Home building Costs
2022-05-16 · 3 min read
National residential construction costs increased 9.
National residential construction costs increased 9.0% over the 12 months to March 2022, according to CoreLogic’s Cordell Construction Cost Index.
That was the highest annual growth rate on record apart from the introduction of the GST in 2001, which means Australians have to pay more to build or buy new homes.
It’s hard to know whether the growth in construction costs is trending up or down: costs rose 2.4% in the first quarter of 2022, which was significantly higher than the previous quarter (1.1%) but lower than the quarter before that (3.8%).
“Timber costs continue to rise, with cladding, decking and other timber items affected,” according to CoreLogic construction cost estimation manager John Bennett.
“Steep rises in metal prices are also now flowing through to the market, with structural steel, fixings and metal components hit hard. We continue to see volatility in the rest of the market, with imported products the most vulnerable due to elevated shipping costs. Rising fuel costs are also on the radar and we have continued to see further increases in the cost of other materials.”
As building costs rise, we will likely see a slow down in renovations and new builds entering the market.
Platinum Package Home Loans delights in supporting first home buyers through the front door of their very own property. We ease your path with personalised home loan solutions, industry expertise, expert advice and tirelessly responsive service. In a nutshell, we make is easy for you to get the best possible home loan for your requirements.
If you are looking to purchase, our team specialise in tailoring loan solutions. Talk to our team to understand how much you can borrow and your repayment options, so you can move ahead with confidence when you find the right property.
Disclaimer:
Terms are subject to approved persons only. This information is true and correct as of 5/04/2022. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.
Join Our Newsletter
Stay right up to speed with all the latest news and developments in the fast-paced home loan industry. Our newsletter ensures you are among the first to know how the borrowing landscape looks in real time.
SUBSCRIBE
Find us
Brisbane
Melbourne
Call us
P: 03 9988 7757
M: 0448 336 662
Email us
l
Apply with us
Click here to get started
- Follow
- Follow
- Follow