New Forecast Gives Hope to Construction Costs

New forecasts give hope to when construction cost inflation could ease. The timing could be ideal for Panorama’s first stages, which are due to title at the end of 2023 and the start of 2024.

According to new forecasts from global consultancy firm RLB, construction cost inflation in Melbourne is forecast to halve, dropping from 8 per cent this year to 4 per cent in 2023.

As indicated by RLB research and development director, Domenic Schiafone, the expectation that costing will ease throughout next year was due to decreasing demand, which is likely to be caused by recent inflationary pressures.

While the report highlighted that extended lead times for some overseas products and material shortages as a result of the recent floods would linger for some time, the nationally-experienced decrease in demand will help improve the Covid-induced cost hike.

Mr Schiafone said: “This easing of demand should allow manufacturing and logistics to get back to ‘normality’ or pre-Covid levels.”

“The easing of demand should also see a softening of material prices with the high level of ‘demand-led price premiums’ reducing.”

While we wait for the construction cost inflation to potentially ease sometime next year, here are some tips for Panorama purchasers:

1.     Start to plan and research your build, now

Start researching builders on the Bellarine or in the Geelong area. As part of your research, look at some houses they’ve built, visit their display homes and ask the builder for references from previous customers. You may also like to speak with their customers about their experience, and how the build process went.

Also, check that your builder is registered with the Victorian Building Authority (VBA).

To help you with this process, we’ve created a list of 10 questions to ask when engaging a builder.

2.     Pay attention to pricing

Be aware that the prices quoted for builds are subject to change. The best way to receive an accurate quote is to take your time and make sure the plans, specifications, materials and finishes you’ve decided upon are exactly what you want. Once you’re satisfied with your home design, ask your preferred builder for an indicative quote. Make sure you wait until your lot gets closer to titling to ask your builder to provide an updated detailed quote.