Construction cost escalation, is the worst over?
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
John has been with us since 2017 when he joined as a Consultant. He’s liked by all and has grown to become a well-respected quantity surveyor, trusted advisor and leader.
With the continuing growth of our Victorian Development Advisory team, John will manage a growing number of key clients and instructions including development approval and feasibility cost estimates, financier reporting and cost consultancy services.
John will also join the leadership group, and will specifically assist with the on-boarding and development of our teams. Continue reading →