The latest QV costbuilder data shows the average cost of building a new home in New Zealand’s four largest cities has risen 21.09% since the previous peak of 2007, and 1.66% in the year to May 2016.

QV costbuilder is an arm of Quotable Value (QV) and provides the latest construction cost data to the property and construction industries through an online subscription web platform tool. QV National Spokesperson Andrea Rush said “QV costbuilder data shows that after peaking in 2007, the cost of building a new home dropped between 2008 and 2010, following the global financial crisis. It then jumped significantly between 2011 and 2012 when the Christchurch rebuild got underway.”

“That year the cost of building a standard 90 to 130 square metre sized home in Christchurch jumped 21.63%; in Auckland it rose 14.29%; in Wellington it increased 11.02% and in Dunedin it climbed 10.20%.” “Since then residential building costs have continued to rise annually at a rate of between 1.5% and 5.5% per year, across all QV costbuilder categories and the cities measured,” she said.

Christchurch and Auckland have seen the largest rate increase in the cost of building a new home, so it’s still more expensive to build in these two cities than in Wellington or Dunedin.”

“The average cost * of building a standard 140 m², 3 bedroom, one bathroom home in NZ for the four main centres is, Auckland $266,000, Wellington $252,000, Christchurch $272,125 and Dunedin $248,500.

Andrea said, “It’s important to remember the average cost of building any home will always be dependent on the level of finishes, internal layout, and whether it has a single or double garage and these figures are averages.”

The highest increases in costs have occurred in the large house category (between 200-600m²) with the price of building a house this size up 34.0% since the previous building boom in the lead up to the peak of 2007.

Source: Scoop