AFTER some building material prices soared by at least 40%, construction costs are expected to moderate in 2023 with residential projects tipped to rise by 8-10% and commercial construction by 6-8%.

According to the latest Napier & Blakeley Construction Costs Datacards, it has been challenging past 12 months for developers, builders, suppliers, sub-contractors alike.

Recently Johnny Woodhouse, State Director Victoria at MaxCap Group discussed in APJ’s Talking Property Podcast about rising construction costs and the impact on rise and fall contracts and traditional funding structures.

“With material costs for timber and steel experiencing general price rises of up to 40% and 50% respectively, with some specific price rises being well above those, all market participants have been struggling to keep ahead of the constant changes, which unfortunately has seen some builders and sub-contractors not survive,” N&B director Craig Smith said. Continue reading →