The Recent Rise In Home Building Costs
If you are thinking of a renovation, extension, or new build in the near future, read on. We’ve asked some of Brisbane’s homebuilding experts, “How much does it cost to build a house in Brisbane this year and next?”
In addition, we’ll look at how increases in Brisbane property values, and the rising cost of construction, along with longer lead times, affect your homebuilding affordability in the coming year.
But even with a level of uncertainty, the latest industry outlook remains positive for Brisbane’s homeowners and recent house buyers. Early in April 2022, national property expert Michael Yardney asked what’s ahead for Brisbane’s property market in the coming year? Yardney observed Brisbane property values:
increased 0.5% over the first week of April;
had already increased 0.2% as April started;
also increased by 30.1% over the last year.
While the overall increase in property values in 2021 is amazing. This means the underlying long-term value of residential properties in Brisbane remains solid. This bodes well for the local economy.
Good News For Brisbane Homeowners
Michael Yardney also explains the criteria for the best suburbs to invest in during 2022. Those suburbs, “…are located within 10km of a CBD, have a train line, a desirable school catchment, and incomes above the state average,” according to the real estate website Open Agent.
“We can also expect population increases to continue as interstate and international migration ramps up in the coming year,” observes Jan Hogarth, the principal architect at PlaceMate Architects.
“Even after COVID, many Melbourne and Sydney corporate jobs can be FIFO (fly-in,fly-out), which makes Brisbane an appealing home base,” she said.
In 2022 we’ve seen exponential growth in property values far beyond the 10km radius of Brisbane city. This is good news for homeowners in the long run. It suggests the increase in property values is not a quick spike. But it’s still important to check the value of your property before making any major improvements.
How Much More Does It Cost To Build A House In Brisbane?
Currently, we are in a hectic and inflationary construction period. Interest rates are predicted to rise. Prices for materials and labour are increasing rapidly. Builders’ quotes quickly become obsolete and subject to cost increases as a home building or renovation project develops.
There are some important things to consider before construction can start on your new build, renovation, or extension project. Move quickly but decisively through the planning phase, because it will be at least a year before any soil is turned onsite.
As the local building boom continues, design and Brisbane City Council approval times are extending out. Consultants and councils are grappling with the volume of work.
Builders, architects, and building designers are receiving double the number of enquires they received just a couple of years ago. The industry is taking months longer to process projects. And staff absences due to COVID add to the delays.
Builders need the scope of work resolved completely before their sub-contractors (trades and suppliers) will even consider quoting.
For their own business survival, builders are being choosy about which projects to quote on. Builders have started charging homeowners for thorough quotes as the price of raw materials rises, even before the ink is dry on the original contract.
Securing a quality builder is increasingly difficult. Some builders are only taking word-of-mouth referrals from architects and past clients. They are reducing risk by not taking on fiddly or difficult projects.
If you happen to have a fiddly project, it must be designed and packaged in a manageable way. Using an experienced architect or building designer who is familiar with council regulations and requirements can save homeowners time and money.
Construction Costs and Lead Times
Delays in the approvals process can cost unsuspecting homeowners in lead time and construction costs. As a result, building projects are taking longer to complete. Lead times are stretched and raw materials are on backorder. As the price of raw materials rises and lead times lengthen, builders are asking for more cash upfront to even secure materials. Sometimes, costs are rising before the materials arrive.
Owners tweaking details during a build is usually routine. In the current climate, it can have expensive ramifications. Your home’s design details need to be considered, understood, and locked in before construction.
On the other hand, reselecting by builders is inevitable as original building materials become unavailable. In this market, your builder will have to spend time sourcing alternative materials, while trying to keep a lid on costs. And you, the homeowner, will have to pay for it!
Begin With The End In Mind
So… if you need a bigger, better family home, begin with the end in mind. Bespoke Brisbane builder, Stewart Harris Construction, recommends the following approach in the ‘new normal’ of residential building and renovation projects.
“Assume that by the time you will actually build, overall costs will be shockingly expensive and, take longer than you initially imagined”, says Stewart.
“Select and prepare a non-controversial building approval strategy to limit council delays”, he says.
Your role as the homeowner is to be an engaged and effective ‘partner’ in the design process. Get clear on your family’s priorities in the short-mid- and long-term. Don’t delay your decision-making. This will help cap costs and reduce timeframes.
“Do what you can to make the size of the build efficient. Every square metre has to count,” Stewart says.
Time is Money
Use consultants who routinely do your kind of project, just as you would for any professional hire. This is where your architectural design professional comes into their own. Your home’s design should offer the best value for money for your particular site and project needs.
Building costs are rising rapidly. They have increased from $1,700 to $2,700+/sqm over the past year. As the cost to build a house in Brisbane rises, it pays to prepare upfront. In this market, paying design professionals $10K’s upfront to seriously consider and document the best option for your needs, is the smart option.