Brisbane construction costs remain low in the face of building boom
Usually a building boom similar to the one happening in Brisbane would be accompanied by a dramatic increase in construction costs… and in 2003, when Brisbane’s last building boom took place, this is exactly what happened.
But according to the Australian Bureau of Statistics
, unlike the 13% construction cost increase in 2003, Brisbane in 2015 only saw a 5% increase in the equivalent costs. This is good news for both developers and prospective buyers, as it helps keep apartment prices low.
This is considered unusual, but experts suggest that it’s because of the focus on building residential buildings, rather than public infrastructure which usually features actively during building booms. There are also less fly in/fly out workers than ever before, which is helping keep costs low.
The apartment boom Brisbane is currently experiencing has been driven by low interest rates, a low Australian dollar and an undersupplied market in previous years. Because it has coincided so well with the end of the mining boom, there is an increase in contractor availability to help drive this new boom.
This has also encouraged an increase of apprentices entering the construction industry, with a 54% increase over the last decade, bucking a national trend that otherwise shows a downturn in apprenticeships. This increased number of skilled workers has helped drive construction, as developers are able to quickly and easily obtain staff.
Following the residential construction boom, experts suggest that hotels, leisure, recreation and resorts will be the next focus in construction in Queensland, which will help drive the increase in Chinese tourists to Australia, which has more than tripled over the last 15 years. These forecasts suggest that the Queensland construction industry has a bright future ahead of it.