Home values down 6.7 per cent while building costs still rising 3 per cent
Home values have fallen 6.7 per cent but construction costs still rise 3 per cent, making buying cheaper than building.
Australians looking to build a new home face a surprisingly weak case for it right now. Home values have dropped 6.7 per cent from their peak over the past seven months, yet construction costs are still climbing at about 3 per cent a year.
In many areas, existing homes are now selling below what it would cost to rebuild them. Mortgage brokers are seeing far more clients choose to buy than build.
Builder insolvencies add another risk: construction is Australia's industry with the most business failures, and if your builder collapses mid-project, you can face delays, cost blowouts and warranty disputes.
Government benefits also mostly apply only to first-home buyers. NSW offers a $10,000 grant for new builds on land and construction under $750,000, plus no stamp duty on land up to $350,000.
- 6.7 per cent
- Home value drop
- 3 per cent annually
- Construction cost rise
- 10,000 dollars
- NSW new build grant
- 350,000 dollars
- NSW land stamp duty threshold
Why it mattersFor anyone weighing a property decision, the numbers now favour buying over building due to falling home values and rising construction risk.
AustraliaAustralian property hunters should compare fixed-price build quotes with existing homes in their area, as buying is typically both cheaper and safer in this market.
Corroborated byportnews.com.au
✓ Claims checked against the source. checked 4 h ago
