Construction Costs In Australia Will Rise in Coming Years, Observers Note

 As a popular saying goes, “Nothing in life is certain except death and taxes” . Well, perhaps I should add one more thing – price increases! According to consumer advocates, prices and costs will rise throughout the planet (And that includes Australia) in the coming years, especially in the construction industry. The reason for this, observers say, is that there's a resurgent building sector that longs to get out of that COVID-19 lockdown rut, and there's also a massive volume of engineering work that drives competition for resources.

 

The Mining, Housing & Construction Boom Has led to the Price Spikes

If you're getting a much higher quote from various construction firms and builders Gold Coast, perhaps it's because of the boom in mining, housing and construction in the past decade. Industry analysts also stress that an upward pressure on construction costs would re-emerge in 2022 and 2023.

 

Commitments on Net-Zero Carbon Emissions Also Lead to Rising Construction Costs

According to the Arcadis International Construction Costs report for 2020-21, one key driver for rising global construction costs in the coming years will be the strong commitments by governments and the private sector on achieving net-zero carbon emissions. These commitments would eventually lead to more stringent requirements for building design and specification.

 

The report states that 39% of the planet's greenhouse gases come from the creation an
d use of new and existing infrastructure and buildings. This means that all builders Gold Coast will need to quickly move and prioritize the removal or lessening of emissions throughout the construction life cycle and supply chain.

 

The report also recommends measures for the construction industry to minimize waste, substitute carbon-intensive materials like cement with more eco-friendly options, and set up more low-carbon electrical and hydrogen-powered plants.

 

COVID-19 Has Also Made it More Expensive to Build a Home or Office Tower

Perhaps the saddest effect that the COVID-19 pandemic has brought to the construction industry is that it has become more expensive to build a home, or even an office tower or warehouse today. So, be ready to adjust your budget when dealing with various builders Gold Coast!

 

According to the latest Cordell Housing Index Price or CHIP Index, the rate of change of construction costs just within residential market segment, ended 2020 at 3.6%. With approvals for residential housing units at record highs, industry analysts say that we'll likely see additional pressure growing on construction costs.

 

The Australian Bureau of Statistics has also reported an increase of 2.6% in the total number of residential housing units approved in November 2020. This has also led to an increase for the employment of workers in the construction industry.

 

The statistics bureau said that Queensland registered the highest growth in construction costs (Which was up by 1.8%). This was followed by Victoria, with a 1% rise in construction costs, and New South Wales, South Australia and Western Australia who all reported construction cost increases at 0.7%.

 

But then again, if you do your homework in advance, and you have a straightforward discussion with your chosen builders Gold Coast, I'm sure you'll get the right price for your residential or commercial projects!