NHBB is always up to date with price changes in the Perth Home Building Industry. Changing rates will affect you and your build costs, so it is important to be aware that this change is happening now in 2021.

Tristan Kirkham, our Managing Director, was recently interviewed by Nine News about Builder price increases in Perth. Click here to find out what he said on The Age. 

What our research tells us

Our research tells us that in 2021, Perth home builders have had between 7%-10% in price increases from suppliers and also trades.

Brick layer rates have moves from $1.10 - $1.80 (63%) for internal and $1.70 - $2.30 (35%) for face blocks, and this is just one example of a trade rate increases.

Supplier rates are moving between 8%-15%, from what we have seen from builders in writing from the suppliers themselves.

Why the rates have changed

Now we understand that some rates have had to move due to how low some have been over the past few years, the challenge to is to fine tune the balancing act for home builders, suppliers and trades.

We have to work together for the best outcome for our industry and consumers.

Some suppliers pricing is effective on delivery date, on all orders regardless of any quotes issued to builders.

The suppliers are doing this is because builders have thrown large numbers of orders into the suppliers, with the hope of the supplier holding the price.

Some suppliers are dealing with freight issues and record ocean freight prices. Supply chains are under stress due to the delays. Home building contracts under $500K allows the builders to look at items 6 in the contract and 22 to go back to clients with price increases. Home building contracts over $500K is a little different and the builder may have this in the special notes section.

Why are rate changes important to you and your new home build?

What’s important for people building, is to understand how each builder is pricing and scheduling builds. Be careful just getting any information from a sales rep in a display home, as the only person that really knows is the purchasing officer / scheduling manager of any building company.

New home builders who are exposed financially, highly geared and have limited indemnity insurance, are at high risk in these times.

So, in this market do the homework, seek independent advice and understand the industry is in unprecedented times.

Many home builders are in good shape, but if you have signed up with a builder and are stuck with shire delays or finance delays or making variations, understand the builders will now come back to you.

Now that you’re ready to get independent cost advice, click here to book a FREE discovery session with us.

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