Bridges Blog: Building Costs: A Rollercoaster Ride
There has been a notable shift underway in the construction and real estate industries. Building costs, which experienced a surge in the wake of COVID-19, are now showing signs of tapering off.
The Cordell Construction Cost Index reveals a mere 2.4% increase in the cost of building a standard dwelling across NZ in 2023, marking the slowest annual growth since late 2016.
Dwelling Consents, on the other hand, have experienced a dip, with November 2023 seeing a 36% decrease compared to the same month in the previous year. While this may raise concerns, the annual total of 38,209 Consents issued remains relatively high, showing continued interest in new construction projects. The Construction market’s resilience is evident however, despite the 14th consecutive monthly fall in Consents issued. As building costs continue to stabilise and consents fluctuate, it prompts a closer look at how these dynamics might influence insurance considerations for property owners and investors.
If you are about to embark on a building journey, or have questions about your cover, please reach out to your Broker who’ll be happy to assist.
Source: https://www.oneroof.co.nz/news/price-sting-how-much-will-it-cost-to-build-a-new-home-in-2024-44853
