Residential construction costs rose just 0.3% in August quarter

Home-building costs have largely stagnated during 2024, according to the latest quarterly QV CostBuilder update from property valuation firm QV.

The average building cost per square metre for residential dwellings rose just 0.3% in the August quarter, following identical increases in the May and February quarters.

QV's analysis covers prices for thousands of different inputs. The biggest price rises in the August quarter were 0.9% for interior doors and 0.5% for sanitary plumbing.

Meanwhile, prices fell 5.7% for steel framing and 4.5% for suspended ceiling costs.

QV CostBuilder Spokesperson Simon Petersen said building costs were in a good place – at least for now.

“This is good news for anyone looking to build right now, as it will give them more confidence that the estimated cost of a project will indeed be in the same ballpark,” he said.

“What we’re continuing to see is building cost inflation returning to much more ‘normal’ levels. However, there is still an abundance of economic and geo-political uncertainty that has the potential to impact construction costs moving forward. This includes the possible escalation of conflicts in the Middle East and Ukraine, which could affect global supply chains.”

Finance comes first

As you know, the most important part of any home-building project is the finance, as this largely determines whether the project is viable.

Do you have any clients who are thinking about building a house or a series of multi-units? If so, please give them my contact details.

It’s important they speak to a mortgage adviser upfront, so they can make an informed decision about their finance structure.