Construction Material Prices In Australia 2024 – Have They Finally Stabilised or Are They Still on The Rise?
Predicting 2024 is still quite challenging!
The market may have stabilised but the costs of some key materials are still forecast to rise. Altus Group has released its latest quarterly Construction Material forecast for 2024.
Altus Group are a market research company that monitors eight construction material prices in Australia. One of the key findings during the last quarter is three construction materials have declined, three have risen and two remained steady.
Figure 1 – Snapshot of Australian Construction Material Trends Q1 2024
Steel
Steel prices have stabilised this quarter, with sluggish demand from China and slowdowns in major steel-consuming sectors like industrial and logistics. YTD change has declined -11.6%
Concrete:
Concrete prices increased by 1% this quarter. This was due to a combination of energy price hikes, and higher manufacturing and labour costs. The short-term forecast is for stable pricing. However, once building approvals pick up again, as the government’s target to build 1.2 million new houses kicks off in July 2024, it’s expected that early-stage materials like concrete, steel, and timber to be in high demand, which could lead to an increase in supply prices.
Structural Timber:
Prices declined due to weak market demand, which is expected to continue over the short term. The quarterly decline in timber was -2.1% and the annual decline has been -7.1%
Bricks:
Prices rose with heightened demand and the ripple effects of previous energy price rises. Quarterly rise was 1.1% and annually rose 7.5%.
Plasterboard:
Plasterboard has seen supply price increases of 3.6% for the quarter due to rising manufacturing costs. The annual rise has been 9.1%. Altus Group expect short-term plaster prices to continue rising as more approvals are released in the coming quarters.
Diesel:
Global fuel prices have fluctuated due to ongoing tensions in the Middle East. Diesel prices, in particular, will hinge on the unfolding situation in the region.
For more information on the specific expectations and fluctuations in Australian construction material costs visit the industry experts at Altus Group – www.altusgroup.com.
To read the full report: Australian construction material price outlook – Q1 2024
Uncertain About Construction Costs in 2024? We Can Help!
With so many factors related to current material price trends, it can be intimidating to face the challenge of undertaking a large residential, commercial or industrial construction project in Australia. With fluctuating costs and complex construction projects, navigating the financial landscape can be overwhelming.
Thankfully, at Infinity Constructions, we understand, and we are here to help.
Our experienced team of industry experts and analysts can offer you comprehensive project cost analysis for projects of any scope and size.
Here’s how partnering with Infinity Construction benefits you:
Transparent Cost Estimates: Our team of experienced professionals will analyze your project scope and provide a detailed breakdown of material, labour, and permit costs. This transparency allows you to make informed decisions and budget confidently.
Market Expertise: As a leading construction company, we stay current on market trends and have established relationships with reliable suppliers. This translates to cost-effective solutions for your project.
Value Engineering: Our team is adept at identifying areas where we can optimize costs without compromising quality. We’ll work with you to find the best value for your investment.
Fixed-Price Contracts: For added peace of mind, we offer fixed-price contracts that lock in the project cost upfront. This eliminates the worry of unexpected price fluctuations.
Are you ready to discuss your project?
Contact Infinity Constructions today for a free consultation and cost analysis. Let’s turn your vision into reality, on time and within budget.
Call us today:
Sydney Construction Company: (02) 9332 4722
Melbourne Construction Company: (03) 9676 0700
If you would like to discover some of our award-winning projects please explore our project galleries.
For a peak behind the scenes at some of our current large-scale construction projects, please visit our case studies:
