Photo: 123RF
QV CostBuilder's construction cost database indicates the average cost of building a home in the main centres rose more than 11 percent last year, although the rate had slowed considerably from a 21 percent annual increase in May 2022.
QV spokesperson and quantity surveyor Martin Bisset said there was still a long way to go before price growth stablised to pre-pandemic levels.
"In the meantime, supply chain issues are reducing, but is still likely to be an issue with products from China, which still has strict Covid-19 policies in place," Bisset said.
"Inflation also remains rife, both at home and abroad, with all associated costs from rising interest rates likely to continue to be passed on to consumers. Prices are likely to continue to rise as a result, albeit not at the rapid rates we've seen over the last couple of years."
Framing was one of the biggest elemental price increases as a result of a 9.5 percent increase in the cost of precast concrete, reinforcing and structural steel.
Costs related to exterior walls and exterior finishes rose 7.7 percent, and the cost of upper floors and stairs and balustrades rose 7.4 percent and 6 percent respectively.
On average, each trade rate has increased by 4.6 percent since May, with drainage costs up 9.2 percent.
The cost of fire proofing increased by an average of 8.9 percent, with plasterboard linings (8.6 percent), carpentry (8.4 percent) and hardware (7.8 percent) rounding out the top five price increases since QV CostBuilder's last update.
"It's important to remember these figures are averages and the cost of building will always be dependent on the level of finishes, internal layout, and all manner of other elements, including whether or not it has a single or double garage," Bisset said.
