Welcome to 2024 - Gyprocking prices have increased 40%!

Hi All

After the crazy COVID building price increases, last year we saw prices finally stabilise.

Based on some trade prices we have received recently I fear 2024 is going to see another set of prices rises.

We have 3 homes coming to completion soon so we have spent the last few weeks trying to lock down finishing trades.

We have been shocked at the price increases we are seeing in trades such as gyprocking, insulation, tiling and air conditioning.

For the same sized home that we gyprocked in June 2023, the trade prices we are getting are between 40-90% higher.

All the tradies are blaming material price increases. So I have been doing some research and yes gyprock and associated materials ( glue and fixings etc) have increased since January 2024 by around 9-14%, this means that the trades are using this opportunity to dramatically increase their labour prices.

Tiling prices are similarly through the roof this year.

We were paying $50-60/sqm for 600x1200mm tiles last year, best prices this year are between $75-85/sqm with some asking for $150/sqm. They can ask all they like, not paying that much!

Insulation has gone from $7,000 for a typical house we build to nearly $9,000 this year.

For air-conditioning, we paid just under $17,000 for 2 x 16kw ducted Daiken systems ( 4 zones each plus wifi), this year quotes are close to $22,0000.

Hebel saw a big price increase in November as well.

What I am still getting my head around though, is that the industry is generally slow in 2024. So unlike 2020-2022 there are heaps of boys chasing work yet they have all increased their prices.

I speculate that some of them must be choosing to sit at home rather than take slightly less and be employed.

Anyhow that's the news from the coal face.

Enjoy your week

Simeon

This is disturbing news, currently in the design phase of an extension in Perth. Hopefully by the time execution comes later this year we aren't priced out of our own build.

It's no wonder trades are so hated, especially in Perth. Apologies to anyone who is a hard working trade and does a great job. They just seem to hard to find.

Kind of glad I decided to bite the bullet and not delay in the hope of price reductions!

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I speculate that some of them must be choosing to sit at home rather than take slightly less and be employed.
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So lots of Rams and Rangers for sale later this year

Would just be the “custom” home market Simeon or widespread

That is a good question which I dont know the answer too.

Perhaps some of the savvy project home builders have long term rates booked in which we don't.

Tradie may sit at home but will need to get house plastered as well or will you sit it out?