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Construction costs are soaring, so where can you still build a house?

Construction costs are soaring, so where can you still build a house?

  • The median house price in Sydney has surged 115% in the last 8-years.
  • The price of timber is up 380%, steel is 44% higher & the cost of bricks have tripled.
  • Pandemic induced labour & materials shortages, supply chain issues and bushfires drive the hike in materials costs.

Despite the cost of building a house blowing out by 51% over the past eight years, Sydney remains the best Australian capital city to still make money from building a house.

The 115% increase in the median house price between 2013 and 2021, outpaced the 51% increase in construction costs per square metre over the same period.

The worst performing capitals have been Perth and Brisbane. Residential housing construction costs in Perth have risen 26% over the past eight years, compared to a mere 17% increase in the median house price over the same period.

However, all capital cities are currently experiencing blowouts in construction costs and timelines due to global shortages of materials.

 

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THE WEEK AHEAD

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