Building costs have skyrocketed in Tauranga. Photo / Getty Images
A "perfect storm" of pressures has seen the cost of building an average house in Tauranga skyrocket by about $130,000 in the past year, the head of a major building company estimates. Higher prices for land and building materials are among the leading contributors.
Talking about increased building
materials is a government smokescreen. Auckland council fees and charge-out rates have gone out of control, they are looking to charge $84k per section to developers to cover infrastructure costs, and the building dept fees are $195/hr.
- Graham M
In reply to Graham M: Auckland Council is not alone here, need to look into other councils as well including Hastings District Council. Section prices are exploding every time a new block is opened up.
-Allen S
The Government falsely persecuted property investors for being the reason house prices are so high. Construction inflation is close to 30 per cent so anyone with a working brain will understand that prices will have to increase substantially. First-home buyers will despair and head to Australia. Printing of money, the real reason for house price increases, has come at a huge cost to society.
-Mark I
Imagine if you had a shortage in supply of housing and one cost you could control as a Government is labour supply. Imagine then if your Government decided now was a good time for immigration reset - that sounds crazy right?
- Jan W
Parts of the world are in a massive economic boom, triggered by huge consumption of just about everything. That means factory capacity is very tight, especially as many of the main hubs are in various bad stages of the Covid battle. Vietnam, Malaysia, India, Indonesia, Cambodia, Thailand for example. China, where I am, is the stand-out on Covid and manufacturing capacity, but shipping costs from Asia are almost 5x those of last year and climbing. Trying to book containers and ships can be a bidding war these days. This is a huge global problem that tiny NZ can't fix, so be prepared for more pain in the foreseeable future.
-Marcus H
