New Zealand construction costs rise despite falling GIB prices

New Zealand construction costs increased by an average of 0.2% in September, according to the latest QV CostBuilder update. While some material prices declined, various other products saw price hikes, creating a mixed economic landscape for the industry.

Plasterboard linings saw a cost reduction of 0.4%, largely driven by a 1.9% average decrease in GIB products. However, these savings were offset by rising costs in other sectors. Plumbing and waterproofing costs increased by 0.8% and 1.6%, respectively.

Timber was a significant driver of upward price pressure. Structural timber rose by an average of 4.4% across six major centers, while timber joists increased by 5.2% and plywood cladding rose by 5.6%. Additionally, diesel prices saw a 2.3% increase during the month.