Canberra

The Smartline Report – August Edition

The month in review: Canberra

By Herron Todd White
August 2015

The cost of constructing a new dwelling remains high across the ACT and surrounding regions compared to other major markets across the country. The past seven to eight years has seen significant levels of new development undertaken across the capital, with increases in construction competition appearing to have little impact on the cost to construct a dwelling.

For a new 4-bedroom, brick and tile house, prices typically sit between $1,400 and $1,600 per square metre for a standard level of finish. Any optional extras from there don’t come cheap, with many tenders now exceeding $2,000 per square metre. While rates of this level can be supported in added value terms throughout some of the inner suburbs, it can often result in an over-capitalisation in outer, developing areas.

Construction tenders typically appear stronger within the inner suburbs where the market is known to absorb a higher portion of the construction costs. Alternatively a number of property owners in these areas can opt to extend or renovate. This can however quickly become extremely costly with typical extension costs sitting anywhere between $2,500 and $5,000 per square metre, again depending on the extent, quality and scope of works undertaken.

While construction costs remain high across the ACT, quality can be varied. We recommend any property owners looking to engage a builder thoroughly research previous builds undertaken by the company in order to get a first hand look at the quality of the workmanship.

www.smartline.com.au

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.