Residential construction costs continued to increase in the third quarter of the year, albeit at a slower pace, according to CoreLogic's Cordell Housing Index Price (CHIP) Report.
The national CHIP Index increased by 0.6% over the quarter, slightly slower than the 0.9% growth recorded in the two earlier quarters. Still, residential construction costs during the quarter were 3.4% higher than last year.
Between July and August, there was a sudden drop in the number of dwellings approved. According to the report, the number of approved dwellings dropped by 1.6% in August, following a strong 12.2% growth in July.
Of all states, Queensland registered the highest increase in the CHIP Index, with construction costs rising by 0.6% quarterly and 4% annually.
South Australia, on the other hand, continued to report the lowest CHIP Index, despite the 0.6% quarterly increase and 3.1% annual gain in construction costs.
The table below shows the CHIP Index reading and the quarterly and annual gains in construction costs in each state:
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