Construction Cost Growth in New Zealand Largely Stabilized in June, QV says
Construction cost growth in major New Zealand centers largely stabilized in June, with key cost rates showing minimal movement, QV said in a report on Monday.Around 11,000 current material prices were applied to QV CostBuilder's construction cost catalogue, covering Auckland, Hamilton, Palmerston North, Wellington, Christchurch, and Dunedin.The price of diesel fell by a further 6.5% in June, which cut costs in more fuel-intensive areas of construction work. Excavation recorded the largest reduction in the month at 1.5%. Site preparation, substructure and exterior works, piling, and demolition also saw small cost reductions."Diesel prices have eased, which has helped bring down costs in the trades that rely heavily on machinery and transport," QV CostBuilder spokesperson Martin Bisset said. "However, diesel remains more than 50% higher than at the start of this year."There were also slight reductions in some concrete-related trades across the six centers. Concrete declined 0.3% due to ready-mixed structural concrete rates falling by 0.7%, while concrete blockwork was down 0.5% due to grout fill rates falling 1.1%.Plumbing rose by 0.5%, mostly due to higher product prices, while carpentry also increased by 0.2% due to several product price increases.