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The CCCI quarterly growth rate reaccelerated in Q1 2022 to 2.4 per cent, more than double last quarter of 2021, which sat at 1.1 percent but below the 3.8 per cent surge over the three months to September 2021.<\/p>\n
CoreLogic Construction cost estimation manager John Bennett said Cordell data shows timber, metals and imported products are driving much of the growth.<\/p>\n
\u201cTimber costs continue to rise, with cladding, decking and other timber items affected,\u201d he said.<\/p>\n
\u201cSteep rises in metal prices are also now flowing through to the market, with structural steel, fixings and metal components hit hard.<\/p>\n
\u201cWe continued to see volatility in the rest of the market, with imported products the most vulnerable due to elevated shipping costs.<\/p>\n
\u201cRising fuel costs are also on the radar and we have continued to see further increases in the cost of other materials.\u201d<\/p>\n
Meanwhile, CoreLogic research director Tim Lawless aid the annual change in construction costs is approaching double digits, with the impact multi-layered.<\/p>\n
\u201cConstruction cost growth adds a further element of uncertainty to new building projects and renovations as well as inflationary pressures to the economy,\u201d he said.<\/p>\n
\u201cWhile the most obvious impact from high residential building costs are with builders, new home buyers and renovators, another important consideration is the sum insured by home owners.<\/p>\n
\u201cWith construction costs up more than 25 per cent over the past five years, it\u2019s important for home owners to reassess their insurance terms and make sure they are adequately covered should they need to make a claim.<\/p>\n
\u201cA shortage of key materials such as structural timbers and metal products along with higher fuel costs, and labour shortages, is likely to keep upwards pressure on building costs for some time yet.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Most builders are bearing the brunt of construction cost increases, especially those in fixed price contracts, and some have been forced to the wall. Supply shortages and the ever-increasing costs of key materials, such as timber and steel, have been two of the most pressing issues facing the building and construction industry over the past […]<\/p>\n