If you plan to build a house this year in Victoria, you may want to consider doing a construction estimate first as prices have increased in 2017 in the state more than anywhere else in Australia.
CoreLogic’s Cordell Housing Index Price (CHIP) index showed that construction prices rose 5 per cent in the last three months of the previous year. The national average price growth during the same period reach 4 per cent.
Eliza Owen, CoreLogic commercial research analyst, said that the increase in Victoria’s construction costs stems from different factors. A high demand for homes in recent years serves as one major reason behind the significant jump in costs, according to Owen.
If you are looking for concrete products and other on-site essentials such as a factory-made waterstop or PVC waterstops, it may be a good idea to get them from Queensland where prices could be cheaper. Take note to compare prices and ask for an estimate if sourcing from out of state is a better option.
Prices in Other States
Victoria has recorded the highest growth in construction prices, but the costs in New South Wales remain more expensive, according to the CHIP index. The cost of labour often serves as one indicator for higher prices, but the index noted that it had nothing to do with the increase in this case.
In Queensland, prices have grown slower than other states at an annual rate of 3.4 per cent. Owen said that since the 2011 flooding incident in Brisbane, the demand for building materials has led to higher prices.
Home builders or even individuals that plan a residential development project this year should take time to compare construction costs among different states. It may be good to order in bulk, as some suppliers may offer a discount.