Building costs can blow out

That is when madmen venture into the midday sun.....

 

Yes, silly stuff

 

I am one of the madmen

 

Update

Looking like brickwork should be completed by mid dec, then roof. My builder owns the roof company so there should be no delays

Did not get hit with any build increases…. Dumb luck

 

Despite al the rattling about builds being slow...my land settled in Sept 2021....mine got to site last week. So slab and soak wells sorted by Xmas.

Brickwork...hopefully in Feb....

 

For those considering building….. looks like concrete going up. My friends project, starts in 2022 has to foot another $60,000 for this

Nasty stuff

 

I was told at the start of 2021 this was already happening.
Won't be any relief till second half of 2022 - I was told.

That information is old now, I will see if I can get an update from my sources.

 

Ok
Just what an investor friend is dealing with in Perth

 

Seems excessive for just the concrete unless it's a huge project. I'd be expecting a few thousand if anything to cater for the increase.

 

4 big townhouses

 

Thanks for all the updates. I have two blocks ready for subdivision and I'm dragging my heals on lodging the second one. 3 years are a long time, but I don't see this easing in late 2022. Seems like global shortages, global inflation... I'm worried this will negatively impact the price of land :/

FWIW, I have only just managed to secure a dividing fence installation for a retain and 'build' (rather retain and wait) , 30% up on last year and most fencers booked out for 6 months.

 

If house prices continue to rise I expect so will build prices.

 

I think that also depends on getting migration happening again.
Once the border opens up, then hopefully more brickies and other tradesmen will relocate to Perth - the current price per brick laid is around $3 per brick , which has doubled in the last 12 months or so...

 

Those prices wont go down without a massive excess of tradies which isnt envisioned. These rates will stay up. Some may fall if foreign competing supply (eg timber) occurs. It could get worse still

 

$7500 per slab, that seems insane for an increase.

 

That is kinda excessive.
What is the $ rates for 25MPa concrete per cubic? It can't be more than $180 per cubic?

 

Your right
I think its a bigger project, getting confused but did say $60,000. They are building accommodation for elderly. Must be bigger project??

 

We got an indicative 60k hit on a 1.3m quadplex project earlier in the year. Flipped out as a result as it just made the building exercise fairly profitless. Given Sydney boom developer demand is hot so demand for sites is strong.

Have noticed building rates up 10-20% up on projects in total over 2021.

 

So far I have managed my build costs pretty well.

Have one starting tomorrow...fixed price 265k in Geelong ...24.7sq home. Slab will be laid by Xmas....they even have the frames ready for Jan. Cost 265k. Another 7k for landscaping and fencing. Total cost 620k....end value north of $1m.

Perth...have just laid slab....planning on brickies to start Feb. 227k build...no issues on prices so far. Another 4k for landscaping. Total cost 405k...end value expected to be north of 550k. Build cost now over 250k....minimum....

Have another 2 more builds in the pipelines...and possibly another 2 more.....how exitement!

 

Not on the same level, but once I find out if I can get my granny flats if I need to obtain a DA or a private certifier, I can find out how much costs have blown out!