Brisbane rivals Melbourne in cost of new housing
The cost of building a new home in Brisbane has overtaken that of Melbourne, according to results of a survey released today.
The second Queensland Master Builders (QMBA)/Cordell Housing Cost Index quarterly survey also showed that, for total construction costs of a new home, government fees and charges in Brisbane exceeded those in Melbourne.
Plant hire costs were also higher in Brisbane, as a result of the increased level of construction activity.
"With a high level of construction activity in Queensland, we have seen Brisbane home construction costs rise to a point where they have surpassed those of Melbourne, making Sydney and Brisbane the two most expensive major cities in Australia in which to build a new home", the Costing Division Manager of Reed Construction Data, Mr Mike Bartlett, said.
Despite a higher than average increase in building costs in the May quarter 2004, the Affordability Index based on the ratio of the total cost of building to average weekly earnings has increased for the May quarter, making housing more affordable for the average wage earner.
In analysing the breakdown of the cost of building a new house it was found that, of the total cost, materials represented the largest portion, 39%, followed by labour costs, 26%, with professional fees and government charges including the GST accounting for 20%.
The QMBA/Cordell Housing Cost Index survey monitors the cost of new housing construction in South East Queensland.
Costs were based on a new single-storey four bedroom family home with two bathrooms and double garage, typical of many homes built in South East Queensland.
The survey was conducted by Reed Construction Data in conjunction with the QMBA.
For more information contact Mike Bartlett, Costing Division Manager, Reed Construction Data. Phone (02) 9934 5555. Email: info@rcd.com.au.