Construction Costs in Australia Decreasing

The post Construction Costs in Australia Decreasing appeared first on Oak Laurel.

Construction cost in Australia are among the most expensive in the world but are coming down according to an international report.

 

A report by Turner & Townsend a multinational professional services company ranked Sydney at 10th, Perth at 16th, Melbourne at 19th and Brisbane at 20th most expensive cities in the world for construction costs.

The study analysed 35 residential and commercial projects in different markets around the world and found that New York is the most expensive place to undertake construction activities.

Markets analysed and the report’s predicted construction market in next 12 months included:

Cooler Staying the same Warmer
Australia – Perth Australia – Melbourne Australia – Sydney
Brazil Canada Doha
China Chile Hong Kong
Kazakhstan Germany Ireland
Malaysia India Kenya
Russia Japan Netherlands
Singpore Poland UAE
Uganda South Africa UK – Central
South Korea UK – London
Vietnam UK – North
UK – Northern Ireland
UK – Scottland
UK – South
USA – Houston
USA – New York City
USA – Seattle

 

Construction market in Australia

According to Sourceable Senior economist Gary Emmett from Turner & Townsend said Australia is becoming a relatively cheaper place to build, due to low interest rates and a falling Australian dollar.

“The 2015 report shows that compared to 2011, it would cost overseas investors paying in US dollars 13 per cent less to construct buildings in Australia, which is a significant reduction,” he said.

Mr Emmett said that with the exception of Sydney’s apartment market, the cost of construction is stable and the outlook moderate for the medium term.

“Overall, it is a great time to build. Construction costs should remain fairly stable although some residential construction trades may become increasingly difficult to source, adding pressure to costs,” he said.

“Foreign investors are expected to seek more opportunities here to capitalise on the favourable conditions to build projects.”

Construction cost per square meter in Australian cities

The Turner & Townsend report estimated construction costs of detached houses, townhouses, low rise apartments and high rise apartments in the Australian cities Brisbane, Melbourne, Perth and Sydney.

Detached house construction costs per square meter in Australian cities

The construction cost of building a detached house is $1,600 per square metre in Melbourne, $1,650 in Brisbane and Perth, and $1,750 in Sydney.

Melbourne

$0

per metre squared

Brisbane

$0

per metre squared

Perth

$0

per metre squared

Sydney

$0

per metre squared

Building a prestige detached house costs $2,700 per square metre in Melbourne, $2,850 in Sydney, and $3,000 in Brisbane and Perth.

Melbourne

$0

per metre squared

Sydney

$0

per metre squared

Brisbane

$0

per metre squared

Perth

$0

per metre squared

Townhouse construction costs per square meter in Australian cities

Townhouses construction cost $1,700 per square metre in Brisbane, $1,750 in Melbourne, $1,850 in Perth and $1,900 in Sydney.

Brisbane

$0

per metre squared

Melbourne

$0

per metre squared

Perth

$0

per metre squared

Sydney

$0

per metre squared

Low-rise building costs per square meter in Australian cities

Construction costs to build low-rise apartments are $1,800 per square metre in Brisbane, $1,900 in Perth, $1,960 in Melbourne and $2,100 in Sydney.

Brisbane

$0

per metre squared

Perth

$0

per metre squared

Melbourne

$0

per metre squared

Sydney

$0

per metre squared

High-rise construction costs per square meter in Australian cities

High-rise apartments building cost $2,500 per square metre in Brisbane, $2,700 in Melbourne and Sydney, and $2,900 in Perth.

Brisbane

$0

per metre squared

Melbourne

$0

per metre squared

Sydney

$0

per metre squared

Perth

$0

per metre squared

Borrowing to build your dream home or a small development project?

A construction loan may be a good choice for a single dwelling (house, townhouse or unit) or up to 4 dwellings (houses, townhouses or units on a single title – prior to subdivision) in a small property development. Find out about Construction loans here:

Borrowing to build a larger property development project?

Larger property development projects (multi-dwelling developments – houses, townhouses, units or apartments) require specialised construction finance.

Oak Laurel – Construction and development finance made easy!

Oak Laurel Mortgage Broker

The post Construction Costs in Australia Decreasing appeared first on Oak Laurel.

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