UPDATE: Civil development costs in Brisbane have skyrocketed, with the average price for preparing a block of land now at a staggering $180,230. This figure has surged by 80% since the pandemic and is expected to rise further as the 2024 Olympics approach, intensifying pressure on already strained housing markets.
New data from Colliers reveals that the costs associated with essential pre-construction work—such as connecting utilities and laying roads—have surged dramatically. Authorities report that these expenses increased by 7.7% in just one year, up from $167,365 last year.
“It’s a supply and demand thing that we’re really seeing here,” said Dan Collins, a director at Colliers. He emphasized the significant impact of the COVID-19 pandemic, which led to a boom in infrastructure, coupled with a critical shortage of resources and labor. “The prices skyrocketed due to a shortfall in supply and skyrocketing demand for materials like concrete and asphalt,” he added.
The report indicates that across Brisbane, the average civil works cost ranges between $215,000 and $200,000, while specific areas such as Logan Reserve and Park Ridge see slightly lower figures at approximately $140,330.
This surge in civil development costs poses an urgent challenge for potential homebuyers and investors, raising fears that housing affordability may plummet even further. With the Olympics around the corner, demand for housing is expected to escalate, potentially exacerbating the situation.
As developers scramble to keep pace with the rising costs and housing demand, the implications for ordinary Australians are profound. The financial burden on families seeking to build their dream homes is increasing, causing many to reconsider their plans.
Residents and potential buyers are urged to stay informed as this situation develops. The implications for the housing market and local economy could be significant, affecting everything from rental prices to home values.
With these trends unfolding rapidly, stakeholders are keeping a close eye on how the upcoming Olympics will influence housing costs and availability in Brisbane. More updates will follow as authorities continue to monitor the evolving situation.
