Building costs

[troyvdh]

In the past few days I've read and heard that steel and concrete costs have escalated by some 30 % from november last.In addition I've heard that in some instances contracts to build have conditions that state that the final price is blah blah but if steel is more you pay.Do folk consider this a short term blip ? or longer term ? the ramifications are fairly obvious I suppose then huh for the valuations of existing structures ? be they residential,commercial,industrial,or form the physical infrstructure of virtually anything being built ?

[ari]

Every month there is another increase, whether it be steel or doors as it was last month. I'm in the process of building 2 houses and costs are still running within budget but one house is at lining stage and this is the stage that the expenses start to rocket.Just had call from insluclad applicator looking for money and said job totalled 115 metres. Queried same as my figs were 80m and got another call to apologise that he was on wrong page and it should be 92m. Every move you make has to be double checked, they're all asking top dollar, but they just try to screw that little bit extra (in this case it was $2250)
Cost per metre budgeted at $1304 on Aucklands North Shore for this project with a completed value in excess of $1.4m

[Scooter]

Looking at building in Hawkes Bay, what sort of cost per square metre should we budget on? welcolm anyones suggestions as well for ideas for house

[Cooper]

Hi Troyvdh,
From what I know steel is going to be this expensive (you may even see further rises) for the forseeable future. High demand, domestically and globally being the cause. China especially has surprised with the amount they are using (surprised as in no-one forecast it) and even though they are dealing with their supply problems they are still a while off being able to look after their own demand.
Steel companies are now putting very firm expiry dates on their quotes, such is the expectation of further rises. Demand in NZ has not tailed off either from what I can tell. This of course impacts not only on structural steel but also things like roofing iron.
So, yeah... long term given a fairly stable level of demand. I can't give any indication as to the construction part but I'd put 25% from christmas last year on any materials from the Steel retailer plus the mark-up from the engineer/builder.
Regards

[ari]

quote:China especially has surprised with the amount they are using
China is also responsible for electrical cable cost increase, which is still on the increase.........

[bermuda]

Talked to a builder of new industrial warehouses.For the first time in his life he is now signing up long term leases on new buildings at a rental subject to building price escalation clauses.Also saw that Mark Binns from Fletcher's is forecasting strong building activity for the next 5 (FIVE) years.

[Scooter]

Long Term Strangle, I am building residential for the family, approx 270 sq metres, brick, single story,

[troyvdh]

Bermuda....you would'nt be living in ChCh would you ?.

[foodee]

Scooter
Regarding cost/sq metre - that is somewhat nebulous. You need to be sure of what is 'in' the sq metre.
You made a good choice in the cladding.
You made a better choice coming to Hawke's Bay-my province.[8D]
Happy to help with info - just mail through site system.
cheers

[duncan macgregor]

During the high Inflation periods In the past I used to lock In supplier prices to a given time frame. Things go up all the time no big deal. Do the deal first. That makes It good to have a supplier locked In and the customer paying the extra. Thats what business Is all about, you are either with It or not. High Inflation as far as I was concerned was great, a couple of hard years with the mortgage then It seemed like nothing. Whatever eventuates use It to your advantage rising prices or whatever. MACDUNK
ps The building cost per mtr Is equal to the length of a piece of string

[Capitalist]

quote:Originally posted by bermuda
Also saw that Mark Binns from Fletcher's is forecasting strong building activity for the next 5 (FIVE) years.


These Property/Building Armageddon propagandists that we are constantly subjected to in the mainstream media don't have a leg to stand on.

As C9 likes to say "Maybe not this year, but one day Roger Finch, one day!!!" :D:D:D

[JBmurc]

just started my next project in queenstown ;)only 3months later than planned, dam council:(.price per sq. last job worked out $1200-$1250 -320sqm home;) was more than happy at than price,this job because of monthy price rises&wage increases,plus a money hungry council :( -1300-1400 per sq.will be far more basic than the last home.Saving money by using less steel&concrete;)

[Scooter]

I am budgeting on $1,000 to $1,200 per square. We plan to do landscaping ourselves, and have modest-nice stuff in house, wood frame, concrete floor, brick finish etc fairly main stream stuff. We normally do as much as we can to reduce cost. So am hoping that it will work out ok.

[foodee]

Scooter
Obviously you are not new to building and experience is a real asset.
Your figure is somewhat light especially if GST is included; but then as I said before it depends on what is 'in' the sq M.
Welcome to the Bay if you make it.

[troyvdh]

At the risk of stating the obvious,is it unreasonable to assume that if the price of building is increasing then the value of those buildings currently standing is increased ? So who is most likely to benefit.I am biased a wee bit noting that PFI is strenghening (and more lining up).There must be others KIP,CNZ,MET, others...

Hold-Residential,PFI,MET