
Spiking construction costs – what it means for the property market
Roy AzziLeave a comment
One of the most common topics that has been popping up from my conversations with developers is the recent increase in the cost of building materials. In the last fortnight alone, I have come across 16 projects that have been shelved due to builders not committing to a build price, due to the uncertainty around the cost of materials. A global boom in construction and the resultant bottlenecks in the supply chain has seen container shipping rates triple or quadruple since the beginning of the year. A quick look at just about any freight index will show you just how expensive it has gotten to send a 40ft container from one end of the world to another.