construction Archives · Australian Loans Group

Homebuilding Costs Increased by 40%

Posted on 09/07/202405/07/2024 by Laze Spasevski

Homebuilding costs have increased by nearly 40% since late 2019, according to a speech by Reserve Bank assistant governor Sarah Hunter. Meanwhile, general inflation (referred to as headline CPI in the graph) has been less than 20%. So why have residential construction costs grown twice as fast? Ms Hunter said one reason is that building materials and labour have “risen sharply” si...
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Inflation Expected To Fall In 2023

Posted on 18/02/202317/02/2023 by Laze Spasevski

While inflation continues to be worryingly high, it may have peaked and is expected to fall in 2023. The Australian Bureau of Statistics’ latest data shows that inflation rose from 6.9% in October to 7.3% in November. In early December, the Reserve Bank of Australia (RBA) forecast that inflation would "peak at around 8%" in December. If that’s the case, inflation may already be coolin...
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Rise In Construction Costs Slowing Down

Posted on 13/02/202313/02/2023 by Laze Spasevski

Construction costs continue to rise sharply, but the worst is behind us as it appears to be slowing down. Residential construction costs rose 11.9% during 2022, after climbing 7.3% in 2021, according to CoreLogic’s Cordell Construction Cost Index (CCCI). The 2022 result was the largest annual increase on record, apart from the period impacted by the introduction of the GST. However, t...
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Construction Activity at Record High

Posted on 31/01/202306/02/2023 by Laze Spasevski

Australia is experiencing a “record high” construction activity across all sectors and states, according to Rider Levett Bucknall’s third-quarter construction report. The amount of construction work underway across Australia during Q3 was unprecedented with “similar levels of activity” forecast for the next two to three years. RLB said this building boom was being driven by: Federal...
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Homebuilding Activity At Record Highs, But Future Volume Will Be Much Lower

Posted on 26/08/202221/08/2022 by Laze Spasevski

Homebuilding activity is at a record high, but this trend has definitely reversed. A record 143,037 new house builds were started in the year to March, according to the most recent data from the Australian Bureau of Statistics. However, when observing the trnd of completed houses vs commenced houses, we can see that they are heading in opposite directions. This suggests that while existing buil...
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