5 June 2009
Construction costs have dropped 1.9% in the first quarter of 2009 according to Archicentre, the building advisory service of the Australian Institute of Architects.
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Releasing the Archicentre
Quarterly Cost Guide, Jim Jovanovic, South Australian State Manager of
Archicentre said Archicentre's predictions that a 5% to 15% drop in costs
on custom designed homes and renovations over twelve months was on track.
"Changes to superannuation in the recent Federal Budget limiting contributions will provide a further economic boost to renovation as people use extra funds to improve their lifestyle. "The first home buyers
grant is also having an impact on renovation as people buying existing
homes have a bit more cash to improve their homes after purchase." |
Mr Jovanovic said that with labour and material costs dropping for renovations the major issue facing many renovators and owner builders is management of the project, handling permit applications, ensuring work is done to the appropriate standard and ensuring tradespeople are coordinated.
"At Archicentre we are finding an increasing tendency for people halfway through projects to make contact when they realise they are out of their depth in managing an expensive renovation with costs blow outs.
"In the current economic climate cost control has become vital with banks tightening up lending."
Mr Jovanovic said one of the trends in the past quarter has seen a dramatic increase in the number of home owners, renovators and builders wanting to include energy and water saving features in their homes and renovations.
The Archicentre new Cost Guide is available to download from the Archicentre website at http://www.archicentre.com.au/pdf/2009WinterCostGuide.pdf
Media
Enquiries:
Jim Jovanovic South Australian State Manager Archicentre (08) 8228 0300 Mobile:
0438 340 294
Ron Smith Corporate
Media Communications Archicentre (03) 9818 5700 Mobile: 0417 329 201