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Australian homes are much more expensive to build, and the average cost of building a private home has skyrocketed by nearly $ 80,000 in the last 12 months.
By analyzing the latest construction data from Australian Bureau of StatisticsThe Epoch Times, at the national level, took an average of about $ 413,436 to build a private home in May before the COVID-19 pandemic, rising from $ 335,812 last year to $ 332,248 in February 2020. I found that.
Of the states and territories, New South Wales had the highest average construction cost of $ 457,166 per residence, followed by Northern Territory at $ 451,364, Victoria at $ 439,480, and Queensland at $ 410,126.
At the same time, in Victoria and Queensland, average construction costs increased the most by about 27%, while South Australia’s costs increased by only 8.5% during this period.
Rising building material costs, high inflation, supply chain disruptions and wage pressure have forced builders to raise prices.
Paul Vinnie, Victorian Chairman of the Consulting Architects Association, said homebuilders have raised prices significantly to avoid losses.
“Builders are afraid to lose money [so] There will be significant contingencies to ensure protection from future cost increases, “he said. Age..
“They are pricing on the roof because of that fear.”
Soaring building material costs
Nicholas Ward, a senior economist at the Housing Industry Association, told the Epoch Times that the cost of building materials rose by about 15% in the year to March 2022 and by 18% across the COVID-19 period.
“COVID has seen increasing demand for building materials around the world, including Australia,” he said.
“In Australia, the number of homes under construction is actually at record levels, but COVID is also very constrained in the supply environment.
“Therefore, a combination of very strong demand and very constrained supply … the end result is an increase in cost.”
Global management consulting firm Arcadis forecasts changes in construction costs after 2022 in the latest quarterly Australian Construction Market View Building bids are reported to rise 4-5 percent in Sydney and Brisbane, 3-4 percent in Melbourne, 5-7 percent in Perth and 2-3 percent in Adelaide.
Matthew Mackey, executive director of cost and commercial management at Arcadis, said supply chain pressures that plagued the sector in 2021 were eased, but other factors weighed on the country’s construction cost outlook. I did.
“The biggest problem with short-term construction costs is energy and commodity price fluctuations, which flow directly into key materials such as steel, wood and concrete. These are US dollar costs and Australian contractors. Does not do much management. ” He said..
“The supply of labor is still tight because immigrants are still limited, and that leads to costs.”
McKee also warned that lack of skills and workforce would be a major problem for Australia’s construction sector over the next decade.
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Alfred Bui is a Melbourne-based Australian reporter with a focus on local and business news. He is a former small business owner and holds two master’s degrees in business and business law. Contact him at [email protected].
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