So it’s no surprise that one of the most common topics of conversation among buyers in recent times has been the much-reported rise in construction costs across Australia.

For those that may have been holding off on purchasing due to these reports, I am happy to say that recent figures have suggested that this is no longer an issue.

The respected Cordell Construction Cost Index (CCCI) is a quarterly report which tracks the cost of building a typical new home, and the latest report for the first quarter of 2024 recorded a rise of just 0.8 per cent.

This was a similar figure to what was reported in the last quarter of 2023, meaning that the annual change in the CCCI has now eased to 2.8 per cent. This is the smallest annual rise since March 2007 when the figure hit 2.7 per cent. It is also well below the pre-pandemic average of 4 per cent.

Here in Victoria, the CCCI rose by 0.9 per cent in the March quarter, making the annual figure just 3.1 per cent.

While there are undoubtedly a number of factors that have impacted this figure, one trend that seems to be having an influence is the fact that the number of building approvals has fallen substantially recently, no doubt due to the previous rises in building costs. It’s hard to put up prices when demand is falling!

Numbers like this should provide those buyers wanting to build something new with an increased level of confidence about making financial plans for the future.

Of course, if you are looking for the right site to bring your building plans to reality, don’t hesitate to get in touch with our team at Barry Plant Thomastown. We are always available to assist you in your search and to provide advice on which areas might best suit your plans. You can call us any time on 9466 3233.

Best wishes,

Con Constantinou

Barry Plant Thomastown