Podcast | Creating Resilience
What’s Driving the Cost of Construction?
18 Minute Listen
Costs in construction have spiked in recent months, driven by inflation, economic stimulus and supply chain challenges, impacting on material availability. The increase in construction costs is putting pressure on the development pipeline, margins and timelines. So how high will they go, how are developers managing these increases and what is the outlook for the Australian economy?
In this episode of Talking Property we look at the sharp rise in construction costs and the impact they’re having on the industry. Hosted by Kate Bailey, Director of Research, Pacific with special guests Carlos Cacho, Chief Economist at Jarden Australia and Richard Hume, Victoria State Director of Project Management at CBRE Pacific.
Director, Research, Australia
Kate is passionate about driving thought leadership around innovation and transformation in the retail sector. She has worked in property economics for 13 years including time working inhouse with a major retailer.
Victoria State Director, Project Management
Richard leads the Victorian Project Management and Principal Contracting business with over 30 years’ industry experience. He leads a team of 50+ professionals, delivering projects ranging from $1m to $400m across all sectors including commercial (investor and occupier), government, education, residential, retail, industrial, health, hotels, infrastructure and life sciences.
Richard’s connections with CBRE’s broader business provides insights beyond direct project management in the areas of capital markets, office occupier and investor, valuations, property and facility management, residential projects, building depreciation and cost consultancy.
Chief Economist at Jarden Australia
Carlos Cacho is Chief Economist for Jarden in Australia. Prior to joining Jarden, Carlos spent three years as Australian Economist at UBS Australia, and previously five years at Colonial First State Global Asset Management. Carlos holds a Bachelor of Economics, as well as a First Class Honours in Economics from the University of New South Wales.
Inflation, supply chain disruptions, labour shortages, rising energy prices and stricter regulations are changing the game for the construction industry.
Australian construction costs have spiked in recent months, driven by inflation, economic stimulus and supply chain challenges.
Construction cost price escalations in Australia are expected to peak in 2022 before moderating in 2023. Our latest report explores what’s driving the sharp rise and state-by-state outlook.