Construction costs have peaked, but it’s not all good news

Building inflation peaked at the end of last year and price growth is stabilising, largely due to supply chain and material costs, quantity surveying firm RLB’s latest national forecasts show.

Rampant increases of the past two years have abated – tender price growth will drop in Sydney from 6.9 per cent in 2022 to 3.9 per cent this year and in Melbourne from 8 per cent to 5 per cent – but even so, price growth remains above recent decade averages, the consultancy says.