This report analyses the factors influencing house prices in recent years, including a discussion on land, materials, labour costs, profits and other cost impacts.
A spreadsheet model was produced enabling the effect of price changes in any input to be assessed as a change in the final $/sqm rate.
Productivity in the industry was examined and reasons for a declining trend are discussed.
A comparative analysis is undertaken of big and small builders and it is concluded that the large volume builders can produce houses significantly cheaper than smaller builders.