The cost of building in Australia continues to rise and the Sunshine State’s capital is leading the charge.
International project advisory firm WT shares its construction pricing outlook in this exclusive webinar, with escalations expected to remain elevated through to 2027.
WT construction economist Damon Roast says most markets have been affected by price escalations in both direct and indirect inputs.
“The idea that pandemic-led record levels of escalation were temporary and the old world of 3 per cent escalation, or even cost falls would return has not happened,” Roast says.
“Brisbane leads the way with an average annual escalation of 6.8 per cent thanks to a strong pipeline and further momentum from Olympic infrastructure with potential upside risks.”
Roast unpacks individual inputs and provides a forecast for the next few years across Australia’s key markets.
There is one capital city market, which he says is the closest to a “cyclical upswing”.
WT national director Nicole Trumball also discusses the data and how to overcome some of the key risks in cost escalations in the market.
For more insights click here to get a better understanding of construction pricing and where it is headed.
