2022 Building Costs Per Square Metre in New Zealand

Before jumping into the property market, knowing the going rate for building costs will help you plan more effectively so you can get the home you need while staying within your budget. This article will go over the pricing landscape for building a house in New Zealand in 2022 and the best way to ensure you get fair market value.

The state of the building industry

The most important point you should know is that New Zealand is experiencing steep increases in building costs that are attributable to a range of market forces. Global inflation, wars, trade wars, and COVID-19-related supply chain issues have all had a significant impact on dramatically increasing New Zealand building costs per square metre.

The list below shows the 2022 data for building costs per square meter in New Zealand. Keep in mind that these figures are averages based on building a single-story dwelling in Auckland and a number of other factors [source] :

  • Standard home: $2,395 per square metre
  • Quality home using quality fixtures throughout: $2,820 per square metre
  • Prestige, architecturally designed home: $3,536 per square metre

Rising housing costs tend to hit major cities the hardest. Land prices close to large population centres always fetch a premium. The closer you get to the CBD, the more you can expect to pay for the same size block of land.

The Auckland council slapping a $69,000 fee for building consent costs in 2018 wasn’t a welcome addition, as it put affordable housing further out of reach for many potential homeowners living and working in the area.

Steel prices are a key factor in many home building plans. Australia sells iron ore to China at a higher price than China believes they should pay. In response, China jacks up the price of steel, and everybody has to bear the inflated cost.

Despite the rising prices, the housing market is still going through a boom the likes of which hasn’t been seen since after World War II. As a result, skilled labour is in short supply. Operators—if you can get them—are able to charge premium labour prices because of that.

Knowing what’s causing the steep price hikes might take some of the sting out of the equation, but the trending charts reveal that costs started ballooning upward some time before the current global crisis.

Between December 2009 and June 2018, house prices went up an average of 57%, while labour and material costs experienced a much smaller increase. For example, cement and plasterboard rose by 17% in the same period, while concrete saw a 13% increase.

 

How to control your building costs per square metre in New Zealand

The average building cost per square meter should be considered as a general estimate, not a fixed price on what it will cost to build your home. Square footage prices can vary quite a lot between builds depending on the quality of fixtures, material choices, and architecturally designed features you decide to include. The good news is that these same variables give you a good deal of control over your budget if you have the experience to manage them.

 

How to get the most value out of a new home build in New Zealand

With so much uncertainty in the building industry, and no sign of it improving any time soon, getting the most value out of a new home build will continue to be a challenge for home owners.

Construction cost estimators like Newin Building Estimating Services are a professional service with extensive experience in the building industry and associated trades. If you are looking to understand the latest building costs in Auckland, reduce your building construction costs and streamline your building project, a building cost estimator can help.

 

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