Construction Cost Pressures Delay Projects in Western Australia

Construction cost pressures delay projects in Western Australia

Australia: Perth developments are facing delays as construction cost pressures continue to rise, according to Western Australia’s peak property industry body. Expectations that cost increases might stabilise have eased following new data indicating that pressures may intensify, contributing to a growing number of major projects being placed on hold. Industry representatives note that elevated input prices and labour constraints continue to affect project viability across the state.

Data from the Australian Bureau of Statistics showed that Western Australia recorded the highest quarterly increase in construction costs in the country in August at 5.4 percent, even as residential construction costs moderated at the national level. The divergence highlights the ongoing challenges facing developers and builders in the state, with implications for project timelines and investment decisions.

Source: Financial Review