Rising construction costs have slowed for the first time since the pandemic, according to CoreLogic's Cordell Construction Index (CCCI).

The index, which tracks the cost to build a typical new home, returned a quarterly growth rate of 0.7% for the June quarter.

This is the lowest rate since September 2020 and well below the 1.2% decade average.

On an annual basis, the national CCCI increased by 8.4%.

CoreLogic Construction Cost Estimation Manager John Bennett said while the national figure still remains high, it's a marked improvement on last year's 11.9% which was the highest annual index rise on record.

"While the annual growth figure remains high, it's the lowest level it's been since the 12 months to December 2021," Mr Bennett said.

"The latest index figures will bring some comfort and reassurance to the beleaguered building and construction industry as we've seen two consecutive quarters of growth more in line with long-term averages."

However, he warns there remains some volatility among certain construction product types.

“The CoreLogic costings team is recording some volatility and a large amount of variation across material types, but overall there’s a softening and stabilisation within products such as metal and timber prices," he said.

“There’s been a significant drop off in dwelling approvals in the year to April, which will flow through to prices. As the level of residential construction work reduces pressure on material costs and labour supply is likely to reduce further.”

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