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:
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously - you can check out