Estimated building costs January 2005 update

Here is the latest 6-monthly overview of estimated building costs, to January 2005.

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 BRANZ 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.

The cost of the speculative house can be used as a base cost on which to establish the cost of group and architecturally designed homes. For example, cost per square metre of small group houses in the Auckland region at July 2000:

• = Auckland base cost less 21%
• = $1,023 - [$1,023 x 21%]
• = $1,023 - $215
• = $808/m2

Using the tables

The tables on pages 10–12 also show building indices from July 1999 to January 2005. The indices can be used to establish the likely cost of a building compared with the actual cost of a similar building constructed at an earlier date.

For example, if the actual cost of a large house in Auckland completed in July 2000was $995 per square metre, to establish the probable cost of that building in July 2002, the calculation would be:

$995 x 1050 = $1,089/m²
959

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.

Building descriptions

For detailed plans of the following buildings, please refer back to BIA News March 2004 no. 139.

House 145 m²

Single-storey house on a flat site including internal double garage, three bedrooms, open-plan kitchen, dining and lounge, bathroom, separate toilet, en suite, and separate laundry.

Constructed of reinforced concrete slab, timber-framed walls and prefabricated timber-trussed roof, brick veneer external cladding, aluminium external joinery, pre-finished steel roof and plasterboard linings.

House 202 m²

Single-storey house on a flat site including internal double garage, four bedrooms, open-plan kitchen and family room, open-plan dining and lounge, bathroom, separate toilet, en suite, separate dressing room, separate laundry.

Constructed of reinforced concrete slab, timber-framed walls and pre-fabricated timber-trussed roof, brick veneer external cladding, aluminium external joinery, concrete tiled roof, plasterboard linings, and intruder alarm in addition to standard services.

Retirement home 394 m²

Single-storey building on a flat site, including 12 residential bedrooms with washbasins, separate sanitary facilities, dining and lounge, commercial kitchen and laundry, staff accommodation, and office.

Constructed of reinforced concrete slab, timber-framed walls and prefabricated timber-trussed roof, external cladding of fibre-cement with textured coating, aluminium external joinery, pre-finished steel roof, and plasterboard linings.

Light commercial 414 m²

Single-storey warehouse, with mezzanine on a flat site accommodating warehouse, office accommodation, reception and display area, staff lunchroom, kitchen, and toilet facilities.

Constructed of reinforced slab, reinforced concrete columns, tilt-up precast concrete external walls, powder-coated external aluminium joinery, roller shutter doors, factory-painted steel roof, timber-framed internal partitions with painted plasterboard linings.

Commercial (bulk retail) 896 m²

Single-storey building on a flat site with two retail units: one comprising retail area, two offices, kitchen, and toilet facilities; the other containing retail and toilet facilities.

Constructed of reinforced slab, driven timber piles, steel columns, tilt-up precast concrete external walls, powder-coated external aluminium joinery, automatic sliding doors, factory-painted steel roof, timber-framed internal partitions with painted plasterboard linings, suspended ceiling to all but warehouse areas, and steel-framed fire wall between retail units.

Costs and indices of building construction - current January 2005

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 99	$969	916	$868	899	$710	935	$749	975	$1,282	959
Jan 00	$984	930	$885	917	$729	960	$759	988	$1,292	966
Jul 00	$1,021	967	$926	959	$745	981	$766	997	$1,305	976
Jan 01	$1,041	1000	$966	1000	$759	999	$768	999	$1,337	1000
Jul 01	$1,038	996	$965	999	$776	1022	$771	1003	$1,323	990
Jan 02	$1,061	121	$987	1022	$778	1025	$771	1003	$1,344	1006
Jul 02	$1,086	1045	$1,014	1050	$808	1065	$791	1089	$1,372	1027
Jan 03	$1,136	1074	$1,040	1077	$820	1081	$807	1050	$1,399	1047
Jul 03	$1,178	1113	$1,069	1107	$858	1129	$849	1105	$1,454	1088
Jan 04	$1,261	1191	$1,145	1186	$914	1203	$915	1190	$1,534	1147
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

Region 2 - Waikato - Bay of Plently

	Small House		Large House		Industrial Building		Bulk Retail		Retirement Home
Date	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index	$/m2	Index
Jul 99	$969	926	$868	911	$695	926	$735	971	$1,260	963
Jan 00	$977	934	$877	920	$708	943	$736	972	$1,265	967
Ju1 00	$1,006	961	$909	953	$722	962	$740	977	$1,275	975
Jan 01	$1,046	1000	$953	1000	$751	1000	$757	1000	$1,308	1000
Jul 01	$1,043	997	$946	9993	$737	981	$748	988	$1,291	987
Jan 02	$1,080	1032	$977	1026	$758	1009	$764	1009	$1,331	1018
Jul 02	$1,085	1037	$999	1049	$751	1000	$764	1009	$1,343	1027
Jan-03	$1,123	1073	$1,028	1079	$762	1015	$780	1030	$1,373	1050
Jul 03	$1,164	1113	$1,055	1107	$797	1061	$819	1082	$1,417	1083
Jan 04	$1,244	1189	$1,129	1185	$859	1144	$886	1170	$1,513	1157
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

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 99	$972	934	$872	917	693	930	$733	987	$1,260	966
Jan 00	$987	948	$889	935	715	960	$738	994	$1,280	981
Jul 00	$1,021	981	$927	976	733	984	$741	998	$1,295	992
Jan 01	$1,041	1000	$951	1000	745	1000	$743	1000	$1,305	1000
Jul 01	$1,061	997	$955	1005	758	1018	$756	1018	$1,289	988
Jan 02	$1,086	1019	$978	1029	759	1019	$757	1019	$1,310	1004
Jul 02	$1,038	1043	$1,004	1056	777	1043	$778	1047	$1,346	1032
Jan 03	$1,111	1074	$1,029	1082	$786	1055	$790	1063	$1,368	1049
Jul 03	$1,164	1118	$1,062	1117	$818	1099	$832	1120	$1,417	1086
Jan 04	$1,245	1196	$1,136	1195	$882	1184	$899	1210	$1,516	1162
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

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 99	$944	916	856	904	$689	942	$730	997	$1,264	971
Jan 00	$960	932	$871	920	$706	965	$729	996	$1,272	977
Jul 00	$995	966	$909	960	$719	983	$729	996	$1,281	984
Jan 01	$1,030	1000	$947	1000	$731	1000	$732	1000	$1,302	1000
Jul 01	$1,025	995	$945	998	$737	10008	$744	1016	$1,287	988
Jan 02	$1,041	1011	$970	1024	$748	1023	$750	1024	$1,036	1003
Jul 02	$1,080	1049	$995	1050	$762	1042	$763	1042	$1,337	1027
Jan 03	$1,113	1081	$1,923	1080	$774	1058	$778	1062	$1,360	1045
Jul 03	$1,149	1116	$1,047	1106	$794	1086	$803	1097	$1,402	1077
Jan 04	$1,236	1200	$1,125	1188	$849	1161	$871	1190	$1,504	1155
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

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 99	$946	922	$869	930	$666	915	$707	971	$1,249	964
Jan 00	$958	934	$883	944	$686	942	$710	975	$1,259	972
Jul 00	$991	966	$914	977	$704	967	$715	982	$1,271	981
Jan 01	$1,026	1000	$935	1000	$727	1000	$727	1000	$1,296	1000
Jul 01	$1,027	1001	$950	1016	$732	1007	$729	1002	$1,281	988
Jan 02	$1,076	1049	$973	1041	$750	1032	$735	1010	$1,327	1023
Jul 02	$1,083	1056	$1,000	1070	$750	1043	$748	1028	$1,337	1031
Jan 03	$1,113	1085	$1,024	1096	$769	1058	$767	1054	$1,362	1050
Jul 03	$1,157	1128	$1,054	1127	$810	1114	$814	1122	$1,413	1090
Jan 04	$1,239	1208	$1,130	1208	$874	1202	$887	1219	$1,504	1160
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

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 99	$969	928	$878	918	$703	944	$739	990	$1,266	967
Jan 00	$978	935	$886	927	$715	960	$737	987	$1,272	972
Jul 00	$1,005	962	$915	957	$727	976	$737	987	$1,281	979
Jan 01	$1,045	1000	$956	100	$745	1000	$747	1000	$1,309	1000
Jul 01	$1,045	1000	$963	1008	$752	1010	$762	1021	$1,288	984
Jan 02	$1,072	1026	$984	1030	$755	1014	$760	1018	$1,322	1010
Jul 02	$1,094	1047	$1,009	1056	$768	1031	$772	1034	$1,348	1303
Jan-03	$1,122	1074	$1,033	1081	$782	1050	$786	1053	$1,364	1042
Jul 03	$1,155	1105	$1,053	1102	$804	1079	$814	1090	$1,411	1078
Jan 04	$1,240	1187	$1,131	1183	$870	1168	$882	1181	$1,509	1153
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

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.