Canterbury rebuild ups building costs 20 pct

(Newshub.)
(Newshub.)

The Canterbury rebuild has had an impact on construction costs across New Zealand.

The latest data from Quotable Value shows the average cost of building a home has increased by more than 20 percent since the Christchurch rebuild began.

Data from QV costbuilder shows the average cost of building a home in New Zealand rose 1.66 percent in the year to May 2016.

But the cost of building a home in the four largest cities is now 21.09 percent higher than the previous peak in 2007.

QV says that after peaking in 2007, the average cost of building a home dropped between 2008 and 2010.

But building costs increased significantly between 2011 and 2012 as the Christchurch rebuild got underway.

QV national spokesperson Andrea Rush says "That year the cost of building a standard 90 to 130 square metre sized home in Christchurch jumped 21.63 percent. In Auckland it rose 14.29 percent, in Wellington it increased 11.02 percent and in Dunedin it climbed 10.20 percent."

The figures do not include the cost of buying land, demolishing existing buildings, connecting utilities (power, water, gas, drainage or phone/data lines) increased structural requirements or external works (driveways, landscaping), furniture, council and legal fees, or GST. Additional costs due to changes in the building code are also not included.

Andrea Rush says residential building costs have continued to rise since 2012 at an annual rate of between 1.5 and 5.5 percent, across all categories and cities measured by QV.

"The average cost of building a standard 140 metre square, three bedroom, one bathroom home in New Zealand for the four main centres is Auckland $266,000, Wellington $252,000, Christchurch $272,125 and Dunedin $248,500.

Andrea Rush says "It's important to remember the average cost of building any home will always be dependent on the level of finishes, internal layout, and whether it has a single or double garage and these figures are averages."

Newshub.

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