Browse Forums Building A New House Re: Will prices get better? 2Apr 03, 2023 8:38 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Will prices get better? 4Apr 04, 2023 8:21 am CallyNoon Builders folding is one thing but I thought the issue was the cost of building materials due to supply issues. Surely thats going to end eventually. Even if it did, the difference will be eaten up in the margin on the new prices. Why would the builder give that up? The only reason would be to compete. That will take prices down but will take time, but take us back to ponzi scheme business practices. Don't forget that while building materials may fluctuate, the price of land tends to not. So overtime, you're still likley to be paying more. Re: Will prices get better? 5Apr 04, 2023 8:42 am Don't forget the inflation. They are printing money like it's going out of fashion and it will be. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Will prices get better? 6Apr 04, 2023 8:49 am building-expert Don't forget the inflation. They are printing money like it's going out of fashion and it will be. There may be a better case for buying established in the short term, at least those are market prices. Valuations on building contracts are really conservative and many are learning that without a substantial deposit, they aren't able to borrow as the build contracts are over capitalised. There's no one thing, like cost of materials coming down, that will bring prices down. We're more likley to see pivots in the type of housing than material price drops. When I was buying land, there were very few large blocks left and massive releases of 250-300sqm blocks. I asked the developer why they were doing that and they said "more people want smaller blocks than bigger blocks", while that might be true, its only a sympton of affordability which had been going through the roof. Expect more medium density in growth areas popping up than before etc. Rather than the cost of building coming down Re: Will prices get better? 7Apr 04, 2023 8:54 am Don't forget we are getting 650000 new immigrants which will create fresh demand for housing. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Will prices get better? 8Apr 04, 2023 8:58 am building-expert Don't forget we are getting 650000 new immigrants which will create fresh demand for housing. Yep. Higher demand, less supply, more expensive. The outlook is not great for "waiting". Generally speaking, if you plan on living in whatever you build or buy medium to long term, there is no bad time to buy/build. If you can aford it, do it. Waiting for all the planets to align is a mugs game. Re: Will prices get better? 9Apr 04, 2023 9:08 am My advice is to get into any home you can, even if you do not like it it will be a stepping stone to something better in the future or else it will be a car, van or a tent. Most people will fall behind inflation. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Will prices get better? 10Apr 06, 2023 11:26 pm ponzutwo When I was buying land, there were very few large blocks left and massive releases of 250-300sqm blocks. I asked the developer why they were doing that and they said "more people want smaller blocks than bigger blocks", while that might be true, its only a sympton of affordability which had been going through the roof. Expect more medium density in growth areas popping up than before etc. Rather than the cost of building coming down Thats interesting that developers are saying people want smaller blocks. In 2016 when we were looking for land the average block size was 448 and 512, this is across SE Melbourne(Clyde North, Cranbourne, Berwick....). We bought in 2021 and could hardly get a 512 block in the same suburbs, I remember having to wake up early on Saturday just to get an online ticket to buy land and even then the big blocks were snapped up in seconds. I always thought this was the developers getting greedy and playing to the demand by creating smaller blocks Re: Will prices get better? 11Apr 07, 2023 8:20 am josh12 ponzutwo When I was buying land, there were very few large blocks left and massive releases of 250-300sqm blocks. I asked the developer why they were doing that and they said "more people want smaller blocks than bigger blocks", while that might be true, its only a sympton of affordability which had been going through the roof. Expect more medium density in growth areas popping up than before etc. Rather than the cost of building coming down Thats interesting that developers are saying people want smaller blocks. In 2016 when we were looking for land the average block size was 448 and 512, this is across SE Melbourne(Clyde North, Cranbourne, Berwick....). We bought in 2021 and could hardly get a 512 block in the same suburbs, I remember having to wake up early on Saturday just to get an online ticket to buy land and even then the big blocks were snapped up in seconds. I always thought this was the developers getting greedy and playing to the demand by creating smaller blocks Developers are greedy. No doubt of that. Our money lost valuation due to inflation/deflation which ever angle you're looking at. Hence the affordability of our pocket can only buy smaller blocks moving forward. Re: Will prices get better? 12Apr 07, 2023 11:17 am ponzutwo building-expert Don't forget we are getting 650000 new immigrants which will create fresh demand for housing. Yep. Higher demand, less supply, more expensive. The outlook is not great for "waiting". Generally speaking, if you plan on living in whatever you build or buy medium to long term, there is no bad time to buy/build. If you can aford it, do it. Waiting for all the planets to align is a mugs game. The point about living in longer term is key. We've been tossing up, which way to go, but have decided to push ahead and sign the contract to build. Price is reasonable for us and is slightly cheaper than estimates from last year. Having said that, I think some builders are certainly more keen for work than others. A friend is also building in Sydney with a custom builder I hadn't heard of, but well established. The price is very good for what they're getting. Not volume builder pricing, but good for custom. Re: Will prices get better? 13Apr 08, 2023 2:10 pm AJ1111 ponzutwo building-expert Don't forget we are getting 650000 new immigrants which will create fresh demand for housing. Yep. Higher demand, less supply, more expensive. The outlook is not great for "waiting". Generally speaking, if you plan on living in whatever you build or buy medium to long term, there is no bad time to buy/build. If you can aford it, do it. Waiting for all the planets to align is a mugs game. The point about living in longer term is key. We've been tossing up, which way to go, but have decided to push ahead and sign the contract to build. Price is reasonable for us and is slightly cheaper than estimates from last year. Having said that, I think some builders are certainly more keen for work than others. A friend is also building in Sydney with a custom builder I hadn't heard of, but well established. The price is very good for what they're getting. Not volume builder pricing, but good for custom. Hi AJ111..would you know the approx sqm rate for your friend's custom build. I have been speaking to a few custom builders and the prices i get thrown at are crazy. Re: Will prices get better? 14Apr 08, 2023 2:31 pm From what they've told me their price is coming in around $2600 per sqm. This is for house & driveway, but no other landscaping. I don't know specifics of all the finishes, but I'd say it's mid-range specs from our chats. Re: Will prices get better? 15Apr 08, 2023 2:36 pm AJ1111 From what they've told me their price is coming in around $2600 per sqm. This is for house & driveway, but no other landscaping. I don't know specifics of all the finishes, but I'd say it's mid-range specs from our chats. Should have added. This is for a flat block of land with no additional cost factors such as bushfire zone. Re: Will prices get better? 16Apr 09, 2023 10:49 pm StructuralBIMGuy Unfortunately, Short of a recession You've got buckleys of build prices coming down. As more builders drop out, the fewer builders left put prices up...get it There will still be thousands of builders left in the market to compete on price. ponzutwo CallyNoon Builders folding is one thing but I thought the issue was the cost of building materials due to supply issues. Surely thats going to end eventually. Even if it did, the difference will be eaten up in the margin on the new prices. Why would the builder give that up? The only reason would be to compete. That will take prices down but will take time, but take us back to ponzi scheme business practices. Economics 101 says that if demand drops (which is looks to be below pre-covid) and there remains strong competition (which there is), prices should be bid down so builders won't be able to just 'take the higher margin'. If they could set a higher margin and get away with it, why wouldn't they have just done this before covid (answer: because they have to compete on price)? I've heard a lot of 'building materials will never come down from their highly inflated prices' and 'builders will never drop their price even if supply normalises and demand dives'. This goes against the supply/demand fundamentals that saw the prices rise in the first place. Hence if this does happen there must be some serious anti competitive behaviour going on. If supply issues (including labour) resolve and demand dives, prices have to come down. Problem is this scenario is likely not actually playing out. Re: Will prices get better? 17Apr 10, 2023 10:12 am Instead of waiting (dreaming) of prices coming down, roll up your sleefves and make more money so you can afford what you need. Money is in a worthless inflationary spiral, they print money by the truckloads. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Will prices get better? 19Apr 10, 2023 9:19 pm I think the proposal that a supply and demand curve are a natural law are well exaggerated. Wages never seem to follow this curve, and also prices for supply are sticky when dropping but agile when increasing. Purchasers for wholesalers increase the price due to a forecast in price shocks, and will maintain those prices as the cycle progresses. What you can be sure of is finding more stock that is at a discount because of oversupply. EG LVL studs in bunnings. 2.7m for $10. Tradie may sit at home but will need to get house plastered as well or will you sit it out? 6 22300 Shane It might be best to talk to your structural engineer to see how deep you need to go, because normally once we hit rock or refusal we stop and you don't need to… 3 5308 Bigger the better for storage for me IMO. But I guess it's harder to tell the cost/benefit in your example - mainly the 'cost'? If you go 700mm, what are you doing extra… 2 10582 |