Browse Forums General Discussion Re: Building Costs increase in last 10 years 2Mar 20, 2014 9:34 am Which state you in? In wa we built a house in 2005 and paid $114,000. Looking through the houses now you would be paying about $190,000 or more as the houses are getting bigger and smaller! Re: Building Costs increase in last 10 years 4Mar 21, 2014 2:12 pm There has been 1.3% CPI increases every quarter. Re: Building Costs increase in last 10 years 5Mar 21, 2014 2:42 pm wood bang There has been 1.3% CPI increases every quarter. It's a shame "real people's" salaries aren't increasing by this much every quarter. Seems salaries have actually gone backwards over the past few years. I often wonder if builders will eventually just price themselves out of the market altogether. Re: Building Costs increase in last 10 years 6Mar 21, 2014 5:10 pm Quote: I often wonder if builders will eventually just price themselves out of the market altogether. That's a rather one eyed view. Sure labour costs have gone up in this same period ( I bet your wage has too ) but have a look at the vast increase in taxes on construction materials, the ever increasing red tape and associated developer plus infrastructure costs that councils slug you with every time that someone lodges a DA for either a new house or major reno. Basix ( or the Vic equivalent ) & the carbon tax would both add $12,000 to the average new house than five years ago would have as well. Stewie Re: Building Costs increase in last 10 years 7Mar 22, 2014 12:29 pm Stewie D kavehman I often wonder if builders will eventually just price themselves out of the market altogether. That's a rather one eyed view. Stewie Yes one eyed, but very salient. I dont think he was saying builders fees increases were unsubstantiated, as we all know its the bureaucracy of all three tiers of govt in this country that as slugging us like Mike Tyson, rather than the wages builders are asking. In western countries the cost to build new has far outstripped wages. The house price to wages index decades ago started at 3:1. Today it starts at 6:1. Nuff said. Re: Building Costs increase in last 10 years 8Mar 25, 2014 2:57 pm qebtel Stewie D kavehman I often wonder if builders will eventually just price themselves out of the market altogether. That's a rather one eyed view. Stewie Yes one eyed, but very salient. I dont think he was saying builders fees increases were unsubstantiated, as we all know its the bureaucracy of all three tiers of govt in this country that as slugging us like Mike Tyson, rather than the wages builders are asking. In western countries the cost to build new has far outstripped wages. The house price to wages index decades ago started at 3:1. Today it starts at 6:1. Nuff said. If you look at other countries, house price to wages index is like 10:1, we just got to be more sustainable Re: Building Costs increase in last 10 years 9Mar 25, 2014 3:11 pm Yes but as wages spiral the production costs increase making Australian made items very rich for the global market. The knock on is that jobs and production go offshore. The 6:1 ratio of house price to earnings? Is that gross or after tax. Me thinks after tax which would translate to many times more when indirect taxes are included. Re: Building Costs increase in last 10 years 10Mar 26, 2014 2:21 am The 6:1 or 10:1 is based on the house and land price, not just building prices. You also have to consider the size and standard of new houses is increasing. And builders will never price themselves out of the market. They will just build whatever people ask for/can afford. There are builders that can build you a complete house for $200k, but that won't keep up with the Joneses. Re: Building Costs increase in last 10 years 11Mar 26, 2014 7:24 am I agree JB1. What we need - single storey roof over our heads project home with 3 bedrooms, kitchen,dining, lounge on a small block in the Western suburbs with no landscaping and single garage for $200,000 versus what we'd like - tri-level architect designed mansion, 6 bedrooms, multiple living areas, triple garage, swimming pool set on 1 acre of manicured gardens on the coast for $4mil. Builders will build both and price them accordingly. Just depends on what you'd like ( keeping up with the Joneses as you say ) as opposed to what you can afford. Here is a graph from a publication put out by the RBA a couple of years ago. Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Stewie Re: Building Costs increase in last 10 years 12Mar 26, 2014 9:58 am Builders meet the market and Australia has the largest average house size in the world but the trend appears to have reached its peak due to decreasing block sizes. http://www.adviservoice.com.au/2011/08/ ... -in-world/ While Australia's house sizes continue to grow,the general overseas trend is for smaller houses. The average occupancy per dwelling is now rising after consistently falling for decades. The early falls were the result of falling birth rates; the recent rises the result of stay at home adult 'children'. The number of single occupant households continues to increase. Australia is expected to have approximately 3.7 million single occupancy households by 2026. The average Australian new home now has less front yard and houses are being built closer to the passing traffic, yet the main bedroom is still predominately built at the front. Few new houses are built with two main bedrooms, despite the increasing trend of stay at home adult children. Using historical sales results of individual houses to gauge price increases is misleading as the land values have increased. Builders do not build the land. 3in1 Supadiverta. Rainwater Harvesting Best Practice using syphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost syphonic eaves gutter overflow solution. Re: Building Costs increase in last 10 years 13Mar 26, 2014 1:16 pm Quote: Using historical sales results of individual houses to gauge price increases is misleading as the land values have increased. Builders do not build the land. That has been my biggest beef with these figures for a while. We have some of the dearest real estate prices in the world and going back to the '70's the house value as a percentage of house + land was 65% : %35. Now it has turned 180º and is 35% : %65. I read recently that in the US in some of the big cities like LA , the price to build a new house is just above cost. Builders have slashed margins just to keep their core workers employed and are basically just keeping their heads above water until better times come along. House sizes ... http://www.couriermail.com.au/life/home ... 6119251532 House Blocks... http://www.couriermail.com.au/life/home ... 6086174060 Stewie Joe, it depends on your certifier but we are noticing the ones we deal with are really cracking down. So i would recommend you follow your approved landscaping plans to… 4 10960 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81704 Fair Trading can issue orders to rectify and complete but once the matter goes to NCAT these orders are automatically vacated. You will have to terminate contract and sue… 21 29709 |