Residential construction cost increases have slowed to a snail's pace, according to QV's latest CostBuilder report.
CostBuilder tracks prices of more than 8000 items used in the construction industry plus labour rates, to estimate the average cost of building standard, three bedroom homes in Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin.
In the 12 months to the end of November 2024, the average cost increased by just 1.5%, the lowest 12 month increase since QV began compiling the figures in 2015.
The rate of decline has been particularly dramatic, with the average increase falling from 5.6% in the 12 months to November 2023, 11.3% in the year to November 2022, and 18.9% in the year to November 2021.
The average construction cost increased by 0.6% in the three months to November this year, and by 0.3% in each of the preceding three month periods.
"After four years of pronounced volatility, construction costs have been significantly more stable in 2024," QV CostBuilder quantity surveyor Martin Bisset said.
"This is reflective of inflationary pressures continuing to ease at home and abroad," he said.
Construction cost increases for non-residential buildings (excluding educational buildings) were even lower than for residential construction, with the average cost per square metre rising by 1.4% over the 12 months to the end of November.
"It's important to remember that all of these are averages and the cost of building will will always depend on the level of finishes, internal layout and all manner of other elements," Bisset said.
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