Newspaper article The Chronicle (Toowoomba, Australia)

New Home Construction Cost

Newspaper article The Chronicle (Toowoomba, Australia)

New Home Construction Cost

Article excerpt

IF YOU can secure finance, now is one of the best times to build a new home in recent history.

The relatively subdued state of Toowoomba's building industry means there is more intense competition for available work and improved availability of tradespeople.

This situation helped to moderate housing construction cost growth in the region over the three months to June 2010 with costs only rising by 1.6%.

While this increase is higher than the general rate of inflation, it is important to note that much of the growth was due to the one-off impact of the shift to 6-star energy requirements, rather than movements in labour and materials.

As in previous quarters, labour and materials accounted for the majority of the cost of a new home in the region.

Materials contributed around 51% of the GST exclusive cost, while labour contributed 33%.

The key driver of cost growth was labour with the region reporting a 3.8% increase during the June quarter.

Unsurprisingly, material costs were the other key area of growth although the cost increase was more moderate (1.9%).

The interest rate rises in late 2009 and early 2010 took their toll on Toowoomba's property market with the median house price easing to $295,000 in the June quarter.

The median vacant land price remained fairly steady at $138,000.

As with previous quarters, Toowoomba remains one of the most affordable regions of the state in which to buy a home with a median price that is well below those of the major population centres in south east corner. Land is still, however, an important component of the cost of a new home in the

region.

As noted in previous quarters, it is important that state and local governments actively address this issue to ensure there is sufficient land available to meet projected demand. …

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