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Mind the gap: investors weighing up new build costs against existing dwellings

With many building developments becoming unviable, the need for property investors to weigh up the balance between buying new or established has never been more important.

Child on scooter near train track with Mind The Gap warning.
Examining the gap between purchase price and replacement price is a relatively easy exercise all real estate investors should be considering. (Image source: Shutterstock.com)

The eye watering increases in construction costs across the country are rendering many new projects unviable.

Since the pandemic, building input prices have increased 33.4 per cent while output prices have risen 40.1 per cent for houses and 23.2 per cent for apartments, according to PropTrack data released Friday (14 June).

Although price rises have stabilised in the past year for input costs, build costs remain at a now higher level and continue…

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