Construction Prices Increased?

Probably looking at least 2-3 years

 

And by then today's prices will be seeming reasonable

 

Why pay retail when you can pay wholesale? N'est pas?

 

From an Brisbane residential perspective, I have interviewed a few builders recently (but before the floods) and each said the home builder grant work has slowed down for them and they have seen costs and delays ease a little. I haven’t chatted to anyone after the floods but I assume the repair works etc. has undone that recovery along with the surge in oil etc.

we were looking forward to doing a substantial reno on our PPOR at the end of this year. I hope we can still afford it because we desperately need it!

 

Do you foresee a price correction by a fall in construction costs or by costs remaining flat over time, allowing living costs to keep rising and catch up?

or something else?

 

I wonder what this all means for land prices.

With rates going up and build cost +30%.... the ability for Developers to pay for property will be materially impacted.

 

Maybe once supply catches and oversupply does occur. But don't expect a massive fall...maybe 10-15% after massive increases. ...and then it stays flat. Labor costs will contract the hardest ...materials not so much as they will adjust supply side.

 

more construction grants? Not ideal IMO but I can see the govt rolling some out if construction works takes a dive because of this.

 

does any one know current melbourne build prices per m2 mid spec for 3 townhouse developments? currently trying to do feaso's and had been working off $2,000 per m2 but now working off bmt calculator it's approx 2,934m2 incl gst for mid spec would that seem about right? if so i'm not sure how anyone could build unless the finish prices would also go up dramatically

 

Any predictions on when it'll fall? As our housing market slows, surely new builds will too

 

Been looking at build costs. It looks like it has peaked in a lot of markets. WA maybe the exception but even there I reckon it will peak by the end of the year.

Will look to do my knock down and rebuilds in late 2023....

 

Do you think cost will fall by 10-20% by any chance.

As they say, once the a business increase their prices…. it’s unlikely to come down

 

It will come down ... maybe not as much with project builders who I tend to use.

But the crazy 1.5m quotes for houses in Brisbane well that is insane it should not be no more than $1m for seriously over capitalized house.

I am building houses in Perth with SMEG appliances reverse cycle ducted A/C for 227-240k... only need another 4k for back landscaping.

Some people on here have no idea of value.....

 

I have just looked at my numbers at work.
Recent price increased as of 1st July have already been passed on.
I haven't heard anymore material cost rise for timber, steel, concrete, bricks since.
Labour cost increase is still ongoing - I can't see that drop off any time soon for the next financial year.
I'm suspecting we are near the peak of material cost price. End of this year 2022 should be near if I have to make a prediction. But circumstance beyond my knowledge can change at a drop of a hat.
I am looking to build in second half of 2023 at the earliest if this is any indication to where my headspace.

 

Its not just material costs. Its tradie availability. Some have lost crew to others chasing better pay etc. Some contractors are bidding labour costs up. Some larger builders are negotiating back down on volume etc. Its a tough game at present as they still want to keep on schedule and contractors can follow each other offsite. Its a skill for good supervisors. Costs may not fall unless the construction game crashes in a bad way. Dont think anyone wants that either. Not good for jobs.

If materials supply improves I query how much prices may fall. Its not like Bunning's timbers suppliers will drop prices and then Bunnings will also drop prices. Things that go up dont tend to come down so easily.

 

Our steel supplier advised us today of some price changes, all downwards. I didn't look through the price list to see by how much but the email also said they are expecting further drops due to a stable supply at the moment.

Tools

 

Interesting, would have thought Steel prices would still hold as China is in lockdown

 

Less demand as less people building

 

Concrete prices have gone through the roof in Sydney. Metromix is having a price increase as of 1st of august. Holcim has already increased twice this year.