Capacity constraints in construction sector driving 'massive' price escalation

Tue, 21 Mar 2017

By Jonathan Underhill March 21 (BusinessDesk) - Capacity constraints in Auckland's construction sector have been driving up building costs by more than four times the rate of inflation in recent years, eroding margins for companies locked into fixed-price contracts. John Dakin, chief executive of industrial and commercial property investor Goodman Property Trust, says the cost per square metre to build the average warehouse in Auckland is about 50 percent more expensive today than it was five years ago and his understanding is that constr...

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