Biggest Construction Cost Increase Since Introduction of GST

The quarterly rate of growth within the cost of construction around Australia has surged to the highest rate since the introduction of GST. This is the largest surge in building and renovation prices in 20 years.

Cordell Construction Cost Index has reported that costs have increased 3.8% in September, which brings the yearly increase to 7.1%. Queensland is the Australian state with the largest percentage of increase.

House prices look to be slowing, but building and renovations are expected to continue to rise for 12-18 months, according to CoreLogic.

Bricks are one material that is in plentiful supply, but the issue now lies in sourcing the labour to lay them.

CoreLogic reports that these costs will inevitably fall on the consumers looking to build or renovate a property. This includes businesses involved in residential construction.