For those wanting to tackle a building project, but feeling a little nervous, there may be some good news on the horizon.
Building costs have stabilised, growing at the slowest annual rate in 22 years, reports CoreLogic.
The Cordell Construction Cost Index (CCCI) tracks the cost of a typical new dwelling.
It recorded a 0.5 per cent rise in the second quarter of 2024. This is slower than the 0.8 per cent clocked in the first quarter.
Over the year to June 30, construction costs rose just 2.6 per cent, well below the pre-COVID decade average of 4 per cent.
While the grow-slow phase is welcome relief for those wanting to build, costs haven’t gone backwards.
“The growth in costs has finally returned within normal margins, however the price of construction is not falling and building or renovating remains almost 30 per cent more expensive now than pre-COVID after an extended period of escalating costs,” says CoreLogic research director Tim Lawless said.
So will slower building costs lead to more houses under construction?
Not anytime soon.
We’re still at the bottom of the building approval cycle, says Mr Lawless, and despite thousands of approved projects in the pipeline, building activity remains “sluggish”.
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