New builds shelved as construction costs surge

Significantly higher input costs and a potentially lower return on investment are squeezing developers.

A 30 percent surge in residential construction costs over the last two years has prompted developers to shelve projects as property prices in Sydney and Melbourne flatline. According to new analysis by KPMG Australia, almost 16,400 dwellings in New South Wales were approved but not yet commenced by the end of March, up from 13,800 at the same time last year.  The last time construction levels stalled with a high number of approvals in New South Wales was in 2019, when developers were no...

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Authors: Terry Rawnsley, Will Colwell,

Published Date: 01 June 2023