Estimated building costs 2006 update

Here is the latest 6-monthly overview of estimated building costs, to July 2006.

Applying for a building consent requires that the estimated value, including GST, be provided for the building work for which the consent is being sought.

Estimated values are used by territorial authorities as a basis for the assessment of the Building Levy. Statistics New Zealand, Quotable Value New Zealand and Building Research also use them. The estimated values are therefore an important indicator of the level of economic activity.

Using the estimated costs

The Department provides building costs to help territorial authorities arrive at realistic estimated values when they have questioned the job value provided with a consent application.

The application of a realistic cost per square metre for a range of common building types appears to be the soundest method.

This approach can be used to establish the estimated cost where there is no better basis, as is likely to occur where no quantity surveyor or similar consultant has been employed. Obviously, if a list or contract price is available, this should be used as the cost of the proposed work.

Costing information

Maltby and Partners Ltd, a firm of construction cost consultants, has provided costing information for a series of building types. Maltby has priced from a set of authentic construction documents in order to establish a unit cost that is as accurate as possible.

The costs for houses are provided for one-off speculative houses. These costs do not reflect the economies that may be gained by builders of group houses, or reflect the additional costs normally associated with architecturally designed houses.

To differentiate, group houses have been assessed as being on average 21 percent cheaper than speculative houses, while architecturally designed houses are assessed as being 20 percent more expensive.

For all buildings described here, costs include all necessary internal and external finishes to achieve compliance with the Building Code, all services and provision of standard appliances, and site works.

Disclaimer: The unit construction costs are built up from current commercial prices of materials and labour along with current allowances for contractors’ overheads and margins. Pricing is based on a model building for the region and consequently allowances will need to be made where recognition is deemed necessary for particular and specific conditions. The rates per square metre of gross floor area for each building type include an allowance for GST that is applied as a percentage to the final calculated
total. Unit construction costs are provided as a guide to territorial authorities in assessing building consent fees. They are not intended as a definitive cost for actual buildings and are not to be used for such a purpose.

Costs and indices of building construction

Region 1 - Auckland

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,308	1236	$1,174	1216	$967	1273	$981	1276	$1,595	1193
Jan-05	$1,359	1284	$1,204	1247	$1,004	1322	$1,014	1319	$1,632	1221
Jul-05	$1,449	1369	$1,274	1319	$1,074	1414	$1,087	1414	$1,717	1284
Jan-06	$1,493	1411	$1,305	1352	$1,085	1428	$1,095	1425	$1,738	1300
Jul-06	$1,601	1513	$1,388	1438	$1,149	1513	$1,179	1534	$1,874	1402

Region 2 - Waikato BOP

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,288	1231	$1,157	1214	$924	1230	$962	1271	$1,570	1200
Jan-05	$1,332	1273	$1,186	1244	$951	1266	$982	1297	$1,607	1229
Jul-05	$1,426	1363	$1,257	1319	$1,007	1341	$1,050	1387	$1,697	1297
Jan-06	$1,476	1411	$1,292	1356	$1,032	1374	$1,073	1417	$1,718	1313
Jul-06	$1,577	1508	$1,372	1440	$1,107	1474	$1,147	1515	$1,846	1411

 Region 3 - Wellington

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,291	1240	$1,164	1224	$937	1258	$967	1302	$1,577	1208
Jan-05	$1,342	1289	$1,197	1259	$980	1316	$1,004	1352	$1,618	1240
Jul-05	$1,432	1375	$1,264	1330	$1,037	1393	$1,068	1438	$1,702	1304
Jan-06	$1,486	1427	$1,300	1368	$1,043	1401	$1,082	1457	$1,733	1328
Jul-06	$1,595	1532	$1,386	1458	$1,121	1505	$1,162	1564	$1,863	1427

Region 4 - Remainder of North Island

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,278	1241	$1,153	1218	$902	1234	$940	1284	$1,562	1200
Jan-05	$1,327	1288	$1,183	1249	$945	1293	$966	1320	$1,603	1231
Jul-05	$1,427	1385	$1,261	1332	$1,005	1375	$1,046	1429	$1,696	1303
Jan-06	$1,489	1446	$1,299	1372	$1,021	1397	$1,056	1443	$1,722	1323
Jul-06	$1,595	1549	$1,384	1461	$1,099	1503	$1,147	1567	$1,858	1427

Region 5 - Canterbury

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,287	1255	$1,154	1234	$932	1282	$958	1317	$1,569	1211
Jan-05	$1,344	1310	$1,187	1269	$972	1337	$995	1368	$1,612	1244
Jul-05	$1,449	1412	$1,269	1357	$1,030	1416	$1,068	1468	$1,716	1324
Jan-06	$1,483	1446	$1,300	1390	$1,043	1434	$1,080	1485	$1,732	1336
Jul-06	$1,581	1541	$1,383	1479	$1,110	1526	$1,160	1595	$1,846	1424

Region 6 - Remainder of South Island

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul-04	$1,286	1231	$1,162	1216	$926	1243	$950	1272	$1,568	1198
Jan-05	$1,335	1277	$1,191	1246	$960	1289	$982	1315	$1,605	1226
Jul-05	$1,425	1364	$1,262	1320	$1,027	1379	$1,048	1404	$1,691	1292
Jan-06	$1,481	1417	$1,293	1353	$1,040	1396	$1,066	1428	$1,719	1313
Jul-06	$1,577	1509	$1,376	1440	$1,106	1485	$1,152	1543	$1,842	1407