Builders have high hopes for settled costs in 2023

by | Jan 23, 2023

Wairarapa builders are hopeful that steady building supply prices are in store for this year after they skyrocketed in 2022. CoreLogic’s Cordell Construction Cost Index showed a 10 per cent year-on-year increase in building costs in December alone.

Tunnicliffe Builders owner, Greg Tunnicliffe said that material prices are still increasing.

“We cannot do fixed quotes anymore. The suppliers, whether it is PlaceMakers, Mitre 10, ITM or Carters will give us an estimated price, and they will do their best to honour it. But if there is a major price hike, they have to pass it on to us and we have to pass it on to the clients,” Mr Tunnicliffe told Wairarapa Times-Age.

“The demand for housing still has not dropped. There are many people looking to build from over the hill in Lower Hutt. There are plenty of new builds still happening. A small percentage are tightening their belt, but there are still people wanting work done,” Mr Tunnicliffe said.

Steel and specialist timber are some of the products that have had the most volatile prices in the past year. Despite the record highs and costs of materials throughout 2022, Masterbuilders Wairarapa representative, Paul Southey said prices settled at the end of last year.

“In terms of companies, importers, and builders, it has finally found its rhythm after covid. We are not seeing the prices jumping like they were last year. We actually had a price decrease in timber towards the end of the last year.”

As a result of this decrease, Mr Southey said the sector has high hopes for the year ahead.

“It will be a fantastic year. We are really excited to have a breath of fresh air after covid. Everyone is used to covid so it is not hurting the industry like it was.” He also said the industry is preparing for the predicted recession wherever it can.

“Because we know it is coming, we can plan. For people who are thinking about building, now is the time to get plans together.”