Source: CoreLogic
CoreLogicâs Cordell Housing Index Price (CHIP) report for the December quarter showed that construction costs rose by 0.4%, down slightly from 0.6% in Q3 and also the smallest quarterly rise since Q2 2016 (0.3%).
The annual rate of cost inflation also slowed, and at 3.0% was the lowest since Q4 2016, when it was 2.6%. For context, that figure topped out at 6.9% in the year to December 2017.
The CHIP report measures the rate of change of construction costs within the residential market and covers freestanding and semi-detached single and two storey dwelling homes.
In the latest CHIP Report, Kelvin Davidson, CoreLogicâs Senior Property Economist, says âThe economy has continued to recover in the past few months and most sectors are expanding, apart from anything related to tourism such as accommodation and hospitality. Construction is certainly one of the areas that is seeing growth, although cost pressures did moderate a little in the fourth quarte