Regional VIC

The Smartline Report – August Edition

The month in review: Regional VIC

By Herron Todd White
August 2015

Mildura After a period of relatively quiet building activity from 2010 to late 2013, local builders are once again busy, but not to the extent that they were during the period of government subsidy inflated demand up until 2010.

Building costs have nudged higher during the past two years and the cost of constructing a typical single storey detached dwelling in our region is now around $1,250 to $1,400 per square metre for the living area, with lower rates for garages and external improvements. For this price, an owner will get a relatively standard 3- or 4-bedroom home, containing say 140 to 185 square metres. Higher building rates will apply for dwellings where the floor plan is unusual or there are non standard features.

One very noticeable trend has been for builders to skew their progress payment schedule more towards earlier payments, presumably to assist their cashflow.

Wellington and Latrobe Regions

Basic house construction for Wellington and Latrobe are single level, 3- or 4-bedroom brick veneers with concrete tiled or Colorbond roofs. Good examples of these are found in Sale, Traralgon and Morwell. Standard finishing at a base level consists of average quality prime cost items and tiled flooring in all areas other than bedrooms. Average cost per square metre is around $1,000 to $1,100. Higher quality constructions from $1,100 to $1,300 per square metre will include stone benchtops, timber flooring and high quality prime cost items. Construction costs also escalate in areas with steeper topography or those with limited or difficult access.

There are high quantities of land available in Traralgon. House and land packages seem to be a popular option throughout the region.

East Gippsland

Construction rates for residential dwellings are similar to other Gippsland localities with the exception being prestige buildings built on the Paynesville canals and in other areas with water views. Costs can be anywhere up to and above $2000 per square metre.

Baw Baw (Warragul/Drouin)

Construction continues in the Warragul and Drouin area with supply keeping up with demand. Construction costs range from $1,000 to $1,300 per square metre for a single level dwelling on a near level block. $1,000 per square metre is a basic product with cheaper fittings such as vinyl flooring, laminate benchtops and split system airconditioning. $1,300 per square metre usually results in high ceilings, ducted reverse cycle air-conditioning, stone benchtops and high quality kitchen appliances. We have little to no evidence of newly constructed or to be erected prestige dwellings in this area.

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

 

Share on:

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.