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6 Jun 2022

Australian Residential Property: Input Costs

The ABS (Australian Bureau of Statistics) and HIA (Housing Industry Association) have confirmed what you have all suspected.

That the labour and material costs of building residential property have increased.

The shock however is the number, 40% on average for the past 12 months.

Click for chart.

That is an absurd increase in input costs, cannot be sustained and will likely support residential property prices given the increase in replacement cost.

As input cost shocks such as this work through the economy it becomes even more important to remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.

 

At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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