A recent study by the national housing finance and investment corporation (NHFIC), which covers the 2022 fiscal year, indicated supply constraints have pushed building materials and labour cost inflation to rise at their fastest pace in nearly 50 years.
The Australian construction market has seen significant price pressures in the past 12-18 months for both materials and labour. Supply shortages have seen prices skyrocket, with steel prices increasing by 42%, and timber by over 25%.
In Queensland, there are also several major infrastructure projects underway at present, including the construction of the Cross-River Rail and the Queens Wharf precinct. These major projects are utilising construction capacity, creating further shortages and placing greater upward pressure on build prices. Cost pressures have been further exacerbated by the repair efforts necessary after major flood events in Queensland. Effectively, an already stretched building industry has had to stretch even further.