Browse Forums Building A New House 1 Jun 30, 2017 8:38 pm Just FYI. The new prices for PD are on their website. Average looks to be a $10k price increase. Re: Porter Davis price increase 3Jul 02, 2017 8:39 am What you are experiencing is a boom bust cycle, this is what Perth went through several years ago 1. Where prices went up 1-2 % every month 2. Battlers & Punters were spooked into Signing new home contract 3. Shortage of material & labour caused delays and price hikes 4. Builders over extended, some went belly up and the majority put slabs down and just waited..for trades to become available & rates to drop.in order to complete projects. 5 New houses peaked and have since dropped 15-20%, in some areas more 6. The smart money is on wait for the correction, buy cheap and renovate...you'll save heaps..goodluck Perth house price bust: What can Sydney and Melbourne learn from the west? This article is only half of the story.. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis price increase 4Jul 02, 2017 5:28 pm That makes sense. The cost of bases houses with volume builders can't just keep on going up! Re: Porter Davis price increase 5Jul 03, 2017 12:22 pm StructuralBIMGuy What you are experiencing is a boom bust cycle, this is what Perth went through several years ago 1. Where prices went up 1-2 % every month 2. Battlers & Punters were spooked into Signing new home contract 3. Shortage of material & labour caused delays and price hikes 4. Builders over extended, some went belly up and the majority put slabs down and just waited..for trades to become available & rates to drop.in order to complete projects. 5 New houses peaked and have since dropped 15-20%, in some areas more 6. The smart money is on wait for the correction, buy cheap and renovate...you'll save heaps..goodluck Perth house price bust: What can Sydney and Melbourne learn from the west? This article is only half of the story.. You're absolutely KIDDING me if you're comparing Perth to Melbourne and Sydney lol They are entirely different markets driven by different factors. I appreciate there are definitely booms and busts in all markets, but to say that Melbourne & Sydney will replicate what happened to Perth is ignorant. May as well compare Australian house prices to USA... forget that we a different financial system, foreign investment governance and different tax laws which all play a pivotal role in house prices. Re: Porter Davis price increase 6Jul 03, 2017 12:24 pm goldencrumble That makes sense. The cost of bases houses with volume builders can't just keep on going up! Resources are finite... in the long term if the demand is there, they will... Unless someone replaces what we currently use with cheaper/different alternatives, I don't see why they wouldn't. Everything has risen historically... 20 years ago people built houses for 50-100k... now it's like 320k to build the same basic house. So where's the decrease? Re: Porter Davis price increase 7Jul 03, 2017 12:32 pm StructuralBIMGuy What you are experiencing is a boom bust cycle, this is what Perth went through several years ago 1. Where prices went up 1-2 % every month 2. Battlers & Punters were spooked into Signing new home contract 3. Shortage of material & labour caused delays and price hikes 4. Builders over extended, some went belly up and the majority put slabs down and just waited..for trades to become available & rates to drop.in order to complete projects. 5 New houses peaked and have since dropped 15-20%, in some areas more 6. The smart money is on wait for the correction, buy cheap and renovate...you'll save heaps..goodluck Perth house price bust: What can Sydney and Melbourne learn from the west? This article is only half of the story.. Perth's crash however was largely related to the ending of the significant mining boom. Mining was a big reason the area boomed and prices soared, once the boom was over there wasn't as many reasons for people to stay and people couldn't afford to live there anymore so there was a property collapse. Sydney and Melbourne are vastly different markets with different reasons for growth and boom although I believe markets will see a plateau and a potential minor decrease in price I don't agree we are going to see the massive crash everyone believes AND even if we do see a crash it's houses in the upper percentile that will see the major loses back down to what people believe they are worth. Just my 2 cents though could be vastly wrong. Re: Porter Davis price increase 8Jan 07, 2018 10:08 pm Hi all, New member here, about to begin the long, painful process of a KDR. Had done some early looking into this over the past 6 months, no further than receiving a rough quote for ballpark $$$. This weekend received notice that PD will be increasing their costs from January 27th. Curious, in more recent times is the price increase around the 10k mark or does it vary from house size and design, etc? Trying to determine the pros and cons of handing over $2000 this early to lock in a price before it goes up. Re: Porter Davis price increase 9Jan 08, 2018 8:07 am Cheltsider welcome to the forum Yes the House prices do vary on the design complexity, size and believe it or not "Location" Most builders estimate the cost to build and then schedule the build prior to the start..there are many factors that influence the scheduled price engineering for one. Check your standard contract..here in perth if there are any delays which aren't the builders fault, time delays in accessing the site, Material delays & shortages, etc,etc, then they can ask for a price increase. Your choice is then to accept them or pull out. Either way Houses will take years to build. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis price increase 10Jan 08, 2018 8:20 am Just received this email from Porter Davis: Hi dear potential valued client, This is a bulk email to all our interested customers, happy new year to you all And now for the potential purchasers , we have a price rise at the end of the month the lowest increase is for a Advantage Range Single Storey $4,000 up to as much as $10,000 for our Prestige Range of Double storey homes . Due to pricing pressure from trades and suppliers , we expect a price rise like this every 8 to 12 weeks over the coming year. So if you are looking to build in the coming year, I would make contact ASAP to beat the price rice or lock in a price for a build later in the year . Please note: at the Moment we are selling July 2018 Site starts, as they sell out we will be looking at August at earliest to start and so on . Alternatively if you are no longer looking to build or have purchased a home , please let us know, so we can update our database Re: Porter Davis price increase 11Jan 08, 2018 8:29 am andyboiii Just received this email from Porter Davis: Hi dear potential valued client, This is a bulk email to all our interested customers, happy new year to you all And now for the potential purchasers , we have a price rise at the end of the month the lowest increase is for a Advantage Range Single Storey $4,000 up to as much as $10,000 for our Prestige Range of Double storey homes . Due to pricing pressure from trades and suppliers , we expect a price rise like this every 8 to 12 weeks over the coming year. So if you are looking to build in the coming year, I would make contact ASAP to beat the price rice or lock in a price for a build later in the year . Please note: at the Moment we are selling July 2018 Site starts, as they sell out we will be looking at August at earliest to start and so on . Alternatively if you are no longer looking to build or have purchased a home , please let us know, so we can update our database déjà vu.... Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis price increase 13Jan 08, 2018 9:13 am rum_home This was the major reason I switched from Porter Davis to another volume builder, they had too large jump in price. That doesn't make sense? Builders experience the same pricing pressures and they choose to put up the prices when it suits them, they may hold off monthly increase for quarterly...If they have not commenced on site within 12 months expect a 12 month price increase Alternatively, expect a lot of excuses for site delays, but you will still get the price whack. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis price increase 14Jan 08, 2018 2:57 pm Different volume builders have different margins. Heavy marketing companies such as Metricon, Carlisle, PD (to name a few) would have very high marketing costs. So they recover their costs with big price increases. While other builders, namely 8homes, don't have those large ones. They still have them, but not as high as the above mentioned companies. This is my guess on the rises anyway.. Re: Porter Davis price increase 15Jan 09, 2018 8:28 am I would expect builders to put up pricing minimum of 12 months. PD email sounds like a scare email to get people to sign on their books so they can have some sort of commitments of builds going forward. Its a very competitive market and there are a lot of builds happening at the moment. I remember when we were first looking at PD (as I loved their designs) not so much their pricing and they wanted us to put a deposit down with the spiel that prices were increasing in the new financial year. We didn't. I would be wary committing to any building contract or deposit whereby you had penalty clauses (which some I read are very heavy per month if you don't commence building after certain time) when your land isn't titled or months or over a year away from being tilted. I know in Victoria there is a lot of building happening and all parts of the process are flat out so expect some delays due to this and maybe factor it in. Re: Porter Davis price increase 16Jan 10, 2018 9:46 am StructuralBIMGuy rum_home This was the major reason I switched from Porter Davis to another volume builder, they had too large jump in price. That doesn't make sense? What doesn't make sense? Porter Davis is usually the leader in the price increase cycles, and their jumps can be large. I remember when their balcony option jumped ~60%. But I think when I was looking at the Charlton it went up 13% from when I started, to when I switched. Their Prestige lines can usually go up 10's of thousands of dollars each adjustment cycle. Re: Porter Davis price increase 17Jan 10, 2018 11:05 am rum_home StructuralBIMGuy That doesn't make sense? What doesn't make sense? Porter Davis is usually the leader in the price increase cycles, and their jumps can be large. I remember when their balcony option jumped ~60%. But I think when I was looking at the Charlton it went up 13% from when I started, to when I switched. Their Prestige lines can usually go up 10's of thousands of dollars each adjustment cycle. Trades get paid the same rates irrespective of the builders size. If I am not working next month I will consider dropping my rates. Large builders get bigger manufacturers rebates but they rarely get passed on to the consumer. I would say your balcony price was a stuff up.. 60% increase is nonsense that can't be blamed on labour and material increases, it sounds like the salesman, estimator, or someone make an error What you will find larger Builders doing now is loading their order books while waiting for rates to drop. BTW those builds will take years to build. This is exactly what happen in perth, during the last boom cycle Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Porter Davis price increase 18Jan 11, 2018 8:20 am StructuralBIMGuy Trades get paid the same rates irrespective of the builders size. If I am not working next month I will consider dropping my rates. Large builders get bigger manufacturers rebates but they rarely get passed on to the consumer. I would say your balcony price was a stuff up.. 60% increase is nonsense that can't be blamed on labour and material increases, it sounds like the salesman, estimator, or someone make an error What you will find larger Builders doing now is loading their order books while waiting for rates to drop. BTW those builds will take years to build. This is exactly what happen in perth, during the last boom cycle Well volume builders can in ways force rates from builders, and the balcony wasn't one I was directly looking at. But it wasn't an error, the price when from ~15k to $25k and has stayed at that price since. 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 81724 Three options 1 Ask the liquidator 2 Find another PD customer and ask the source of their report 3 Pay for new report 3 12341 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 29717 |