Construction prices in Sydney will increase by nearly 5% in 2018, partly because of a greater need for workers, according to Rider Levett Bucknall (RLB).
However, the price of stainless steel screws may be cheaper if you buy in bulk. Ask if some suppliers are willing to provide a discount. It’s likely possible given that contractors would choose lower-priced yet quality materials.
Sydney may be the most expensive city in terms of construction price growth in 2018, but other cities will become less affordable in the near future. For instance, Brisbane’s construction costs in 2019 will surpass those in the New South Wales capital, due to a shift in activity towards mixed-use development.
In South Australia, RLB expects Adelaide to record the highest increase in the following years. Demand for infrastructure and defence projects will serve as a factor. Construction firms in different capital cities may hesitate at the high prices, but workers will see it as good news since salaries would likely increase in the process.
RLB’s report aligned with other industry forecasts, particularly in the residential property market. Australian Industry Group and the Australian Constructors Association’s survey revealed that apartment projects would drop by more than 16% next year.
The apartment market’s downturn contrasted the activity in the commercial and civil construction segments. Engineering work will be the top factor for contractors with an expected turnover of 8.4% in 2018, before rising to 12.6% in 2019 based on the survey. Overall, non-residential building projects will increase by more than 9% this year.
Some projects will still need to be delivered whether or not construction prices are affordable. Builders can avoid costly delays by looking for suppliers who can provide equipment directly to construction sites. What is your cost-saving strategy?