New housing costs soaring!

[Thommo]

Spent a few hours comparison shopping yesterday and was amazed at what people are paying for new homes.

The search was for a four b/r project home on a new sub-division.

One new sub with abt 40 lots has only 4 not contracted yet it is not completed. The two cheaper ones @ $105 & $108 are held and the two available are $140 ea. Another area with 42 lots has four held and twelve available. Seven of those are $195 or over because they have a little elevation, but the views are poor and the land barren. The third sub has 10 unsold generally in the $150 - $225 range.

All this is in a dry and unappealing area but the streets are Alpine Court, Kosciusko Way etc What a joke.

A 228s/m (incl patio & garage) house by an "ecomomy" builder would be over $210 finished. And I thought I was being optimistic wanting $320 for my 4yr old home on a bigger (elevated) block with views of the City and a nicer, bigger house.

I'll just have to add another easy $50k. :)

Is it similar elsewhere?

Thommo

[househunter]

Thommo

You are right. Most of thebuilders I work for are now charging around $1000 per sq metre to build a house. The trick is to buy the land at the right price. Here in brisbane the cost of land has gone from the sublime to the rediculous.Most people could not afford to buy the land let alone build a house on it. If you want to buy and build in Bulimba/Hawthorne for eg you would be looking around $800,000. If you move to the bayside suburbs it would be around$650,000. To get lower prices you would have to go a long way out to Deception bay or forest lakes or springfield where you might pick up a decent house and land package for $400,000. There is much more building activity in the cheaper areas. See ya.

Househunter

[agent 86]

Thommo,

Makes you wonder if our house insurances are adequate in the event of. :eek:

A86

[Lplate]

Problem is that there has been so much work around that subbies can pick and choose their jobs and are continually upping their prices.

When does (lack of) affordability kick in?

[Thommo]

Thommo,

Makes you wonder if our house insurances are adequate in the event of. :eek:

A86
Upped mine by 10% last time. Will have to check it again for next renewal.

T

[voodoo]

Spent a few hours comparison shopping yesterday and was amazed at what people are paying for new homes.

The search was for a four b/r project home on a new sub-division.

One new sub with abt 40 lots has only 4 not contracted yet it is not completed. The two cheaper ones @ $105 & $108 are held and the two available are $140 ea. Another area with 42 lots has four held and twelve available. Seven of those are $195 or over because they have a little elevation, but the views are poor and the land barren. The third sub has 10 unsold generally in the $150 - $225 range.

All this is in a dry and unappealing area but the streets are Alpine Court, Kosciusko Way etc What a joke.

A 228s/m (incl patio & garage) house by an "ecomomy" builder would be over $210 finished. And I thought I was being optimistic wanting $320 for my 4yr old home on a bigger (elevated) block with views of the City and a nicer, bigger house.

I'll just have to add another easy $50k. :)

Is it similar elsewhere?

Thommo

hey Thommo,
these are the cheapest prices I have seen for a while.
I can't find a block for under 200k and then a basic 4 bedroom 26sq house is approx 250k minimum.

[Sunstone]

Dear Thommo,

Building costs have certainly risen. However this is cyclical in line with house price movements and the demand on materials.

Builders see how much is being made by investors and use it as justification to increase prices. At some point in time the price disparity further increases the attractiveness of purchasing existing dwellings and renovating where necessary.

When the figures do not make sense........... a balance eventually returns. ;)

My civil engineer commented just the other day that he is now seeing construction cost increases starting to level off.

Cheers,

Sunstone.