QV statistics showed that prospective homeowners and developers would need more than $275,000 and $279,000 for building a 140-square-metre, three-bedroom house in Auckland and Christchurch, respectively.
These figures led the two markets to be the most expensive place for home construction, including expenses such as equipment or building stairs. Auckland homes may cost a lot, but rising prices in certain areas indicate that your investment may pay off in the future.
National Home Prices
QV National spokesperson Andrea Rush said that home prices are rebounding in several regions across Auckland. Property values fell 0.5 percent to a total of $1,045,741 in November year over year, but it increased 0.4 percent in the three months to November. Nationwide, home prices have increased 6.4 percent to $664,485 in the 12 months to November. This nearly doubled the annual growth of 3.9 percent in October.
Rush attributed the higher home prices partly to buyers that set out once again to purchase properties. If you think that Auckland and Christchurch are expensive markets either for home construction or purchase, take note that Wellington and Hamilton posted the highest increase in building costs in the October year over year, according to QV.
A three-bedroom house in Wellington and Hamilton will require you to spend more than $261,000, up 2.1 percent. The statistics cited higher construction worker salaries as one factor for the more expensive building expenses.
Those who plan to build larger houses between 200 and 600 square metres will notice the biggest spike in costs at 3.2 percent, according to QV cost builder spokesman Greg Thompson.
Consider all options when building a house from location to the kind of materials. While it can be tempting to skimp on certain expenses, you should resist the urge since it can affect the property’s value if you plan to sell it in the future.