Construction Prices Continue to Surge

In the Australian Bureau of Statistics’ Producer Price Index report, it is shown that the overall output prices across the Australian construction sector have risen by 3.8% in the June quarter and by 12.2% over the last year.

Since the data began in 1996, this has been the fastest quarterly and yearly increase in industry prices.

When it comes to housing construction, over the last year prices have risen by 19.8%. For civil engineering construction, over the last year prices have risen by 9%.

Prices for steel products have risen by over 39% in the last year and timber, board and joinery products have increased by 24.22%. Many detached home materials are on a similar rise, attributed to the lack of labor, lack of materials and extensive delays since the 2020 Covid-19 pandemic and the Ukraine war.

There have also been impacts on wage and labor costs for commercial, public, and multi-residential building. This is due to pressures on labor supply, as well as wage costs for skilled trades in detached housing and civil infrastructure.