Construction costs ease across Australia as key materials prices stabilise
Following hefty increases in recent years, there’s some relief in sight for home builders – and their clients
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Construction cost increases have fallen to their lowest point since the start of the pandemic according to the latest data from CoreLogic.
The property data provider’s Cordell Construction Cost Index (CCCI) shows a growth rate of 0.7 percent over the June quarter, which is the lowest figure recorded since September 2020.
The CCCI tracks the cost of building a typical three-bedroom, two-bathroom new home in Australia.
While there was variation and volatility across building product types, CoreLogic Construction Cost Estimation Manager John Bennett said steel and timber prices had begun to stabilise. It’s a trend he said was likely to continue.
“There’s been a significant drop off in dwelling approvals in the year to April, which will flow through to prices,” Mr Bennett said. “As the level of residential construction work reduces, pressure on material costs and labour supply is likely to reduce further.”
The price of timber has escalated sharply in recent years as local stocks dried up following the 2019 bushfires and demand for materials increased following the Federal Government’s HomeBuilder initiative. It’s a similar story with steel, which has been impacted by the war in Ukraine, the strength of the Australian dollar and supply chain issues.
However, there appears to be some relief on the horizon with the latest national figures well below the 1.2 percent decade average, CoreLogic data shows, representing a further softening from the 0.9 percent growth rate during the first quarter of this year.
CoreLogic head of research, Eliza Owen, said the figures bode well for a further reduction in the rate of inflation.
“The cost of new owner occupier dwelling purchases comprises the largest weighting in the CPI ‘basket’, which means the ongoing reduction in the CCCI is good news, potentially signalling lower inflation numbers,” she said.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out
2 min
Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.
Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.
The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.
Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.
Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.
“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”
Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.
“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”
Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.
All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.
Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.
The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.
The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
