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