Construction costs easing but developer margins still stretched
In his first column for API Magazine, development expert Greg Devine says developers' margins are tight but 2024 represents an opportunity for progress as building cost pressures begin to ease.
Despite a gradual easing of material prices, margins are still under pressure. (Image source: Shutterstock.com)
Over the past 12 months development groups have faced three persistent challenges: interest rates, inflation, and supply/build costs.
Finally, we are observing each of these issues beginning to stabilise.
While inflation is gradually finding stability, there remains the possibility of another interest rate hike affecting mortgage payers. On a positive note, construction prices are now stabilising and, in some cases, even experiencing a decline …
