Interesting article on the increasing cost of building materials and the effect it might have on the Australian new apartment supply, particularly Sydney’s market:
http://finance.news.com.au/common/story_page/0,4057,10383313%255E521,00.html
kay henry
Interesting – this stacks up against the feed back I am getting from builders. The flow on effect will be to second hand property resale values, which are already looking cheap against replacement values. But then there is the rental oversupply… how’s this for a scenario: the higher construction costs among other disincentives lead to reduced new property supply, and declining rental yiled sees a reduction in rental accommodation available, leading to a correction to rents per week, from which prices can grow again. One or the other has to give.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
I think there might be a few tradesmen who could cut their margins if they had to, once the market corrects and they have to compete for work.
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