Which cities are Australiaâ€™s most expensive for construction?
TPM Builders/blog/Which cities are Australiaâ€™s most expensive for construction?
Compared to the rest of the world, construction costs in Australia have remained relatively stable, mostly due to the number of opportunities throughout the supply chain to find more cost efficient ways to do things. However, when ranked against one another, there are big gaps between the costs of construction between states.
Unsurprisingly, Sydney is the most expensive city in Australia to undertake construction activities and ranks 14th globally. Perth was the second most expensive Australian city for construction, then Melbourne and Brisbane following closely behind. However, construction costs over all have only risen a few percent, which economists say is stable.
Overall, Australian construction costs rose 2.5% in 2016, lower than the global 2.9%. Brisbane had the highest increase at 4%, while Sydney’s rose 3.5% and Perth and Melbourne only increased by 1%. The rises in Sydney and Brisbane are primarily due to the apartment booms, while Perth’s has slowed down due to the end of the mining boom. Melbourne’s small increase is said to be due to a flat period following a busy apartment boom in previous years.
Some experts also suggest that the increased tender competition has kept the market relatively stable, as profit margins have suffered as a result of the increased fight for new ventures.
In order for Australian prices to remain at this level, experts say that the construction industry must continue to look for cost savings along the supply change and innovate to find new avenues where there are seemingly none. These can easily be found in the manufacturing production, design and logistics stages and entrepreneurs and engineers would be wise to jump in on the action.
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