Residential and commercial builders are reporting the first sustained easing in construction input costs since the pandemic-era supply shocks, with steel, timber and concrete prices all softening over the past two quarters.
Industry data shows overall construction cost inflation has slowed to its lowest annual rate in four years, giving developers more confidence to greenlight projects that had been shelved on feasibility grounds.
“We're finally seeing daylight on costs after years of nothing but bad news on that front,” one Sydney builder said.
Labour remains the sticking point, with skilled trade shortages continuing to add months to project timelines in several states.