COST TO BUILD: BEWARE OF BUILD RATES

In construction, the cost to build is a frequent headline. It is as expensive to build as it ever has been. And while that shouldn’t surprise, given regular inflationary economic effects. However, the past 5 years has seen significant, irregular cost increases when it comes to construction. With that, we survey the residential construction costs as we currently see them.

The figures below should be treated with extreme caution, and are subject to a range of caveats and qualifications. Contract structure and risk allocation, programme, timing, project size and overall delivery methodology play a huge role in determining build cost.

However, we provide some indicative guidance on current build rates, being the cost to build each square meter of a residential building. We have also incorporated guidance on how price changes the higher a building goes. As the height increases, so too does the engineering requirement and material use.

• Budget, 1-2 levels: $2,600 - $3,000

• Mid-spec, 1-2 levels: $3,200 - $3,800

• Mid to high spec, 1-3 levels: $3,800 - $4,500

• High spec, 2- 4 levels: $4,500 - $6,000

• Bespoke finishing, 4+ levels: $6000 - $12,000

Importantly, spec and building height don’t operate together. For example, a 2 level townhouse to a bespoke finish may still cost $6,000+ per sqm. Equally, a 4+ level mini apartment may also cost $6,000+ per sqm, but that build cost may only allow for a mid-grade specification.

As this shows, there is a lot of variance in these numbers, and a lot of engineering, design and specification detailing that influences cost. Build rates should be taken with a pinch of salt. These merely act as a guide to what you can expect if you are building to a certain standard and and height/structure. Contact us to discuss your project, and get an appraisal of what a project may cost.