What do you think rising development costs will do to house prices in the property market? Will they go higher or lower? No prizes for the right answer
“Rising construction costs making it ‘impossible’ to build affordable homes – property developer. February 24, 2015
Property developers are sounding a warning that the Government’s plan to enable more affordable housing to be built is being undermined by skyrocketing construction costs.
They say the cost of building a house is up almost 50% in just two years and combined with rising land prices they say this makes building an affordable house almost impossible.
“Last year these houses were $1420 a square metre, unfortunately our builder has gone into receivership so we’re contracting to get the same house built over here at about $1800 a metre, so that’s a 27% increase in a year on construction costs,” says Property Developer Kerry Knight.