There isn't going to be a better time to build.
Global pressure on timber supply means that timber prices are set to climb by as much as 20%. Demand is especially high from Asia - China currently take 50% of our exported timber - and production and export infrastructure are already working at capacity. Domestic timber stocks are at a record low.
The expected increased building activity from the rebuild in Christchurch is set to put pressure on domestic timber prices. Added to this are other other local pressures including an under supply of housing in Auckland, and construction following the settlement of the leaky home deal. Timber prices have already risen 7% in recent months according to Placemakers Chief Executive John Beveridge.
Timber accounts for about 10 per cent of the cost of a medium sized, new single-storey house. A 20 per cent increase in the price of timber could add $6000 to the cost of a new home.
With interest rates low, and house prices set to rise, there isn't going to be a better time to build.
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When is that all likely to happen?
ReplyDeleteTimber prices have already started to rise - so far they've risen 7% in recent months, and are set to continue to rise. So consumers can expect to start feeling the impact anytime.
ReplyDelete