Gold Coast development: Construction cost increases slowing according to new data
New housing is set to be unlocked for the Gold Coast with new data revealing a surprising change in the construction sector which will make struggling builders smile.
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Developers say a slowing in construction cost increases will unlock housing for the Gold Coast as the market struggles against a lack of supply.
New data included in CoreLogic’s Cordell Construction Cost Index (CCCI) reveals the cost of building a house grew by 0.9 per cent in the first three months of the year, the slowest level since early 2021.
That’s down from the 1.9 per cent growth recorded in late 2022 and far below the 4.7 per cent increase recorded between July and September 2022.
However, costs remain significantly higher than they were before the pandemic.
Gold Coast based Orchard Property Group CEO Ted Cronin said there were bright signs on the horizon for the sector, which had struggled in the past 18 months.
“Construction costs are finally showing signs of easing after two years of consistent increases, which is extremely positive news for both homeowners and builders.” he said.
“This is a great development for the industry, as we’ve seen many builders and contractors struggle with rising costs over the past few years.
“We faced significant supply and resource constraints on the delivery of subdivisions compounded by timber shortages for builders, and that led to a lot of frustration for all of us, including buyers.”
Cost increases have spiked since early 2021, with wood, metal and other construction essentials going through the proverbial roof.
Several prominent buildings, including Robina-based construction giant Condev, have gone bust while other projects have been cancelled or delayed, including the already sold-out, $140m Alegria tower at Palm Beach.
The cost issue has failed to slow the sector, with a record number of towers now in the sky as part of new projects.
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Originally published as Gold Coast development: Construction cost increases slowing according to new data
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