There is no doubt that the building costs of a new custom home has gone up in the last year.

This is a result of supply chain problems, supply and demand constraints, availability of materials, construction boom and the stimulus by the government.  We now have the recent floods to add to the building demand.

However, we are not able to say you can half your building costs but what we will be discussing is that there may be some positives you can gain from the price hikes.  This may be a chance to get some features you have always wanted.

Timber in building costs

A key issue putting pressure on building costs is the cost of framing timber, a fundamental building material.

In January 2021, framing timber started from $3.20 per metre. By November 2021, it was $8 per metre – up 150 per cent in eight months.  Much of this was due to fires destroying pine plantations across Australia, the US and South America.

Here are a few design features you should now look at with the price of timber so high –

Suspended concrete slab.

People love suspended concrete but the high costs have been quite prohibitive for many clients.  We ask you to revisit this as the high cost of timber means that timber floor joists have risen in cost.

A suspended concrete slab is a floor slab (can be either ground floor or an upper floor) that are not in direct contact with the ground and can form the roof or the floor of another level. They usually form the upper stories house floors but can also be laid on top of a pre-built wall to form a floor.  This is a popular option but often because of its cost, has been prohibitive.

A suspended timber floor is a beam and joist construction which forms a supporting frame for a floor.  It is usually supported on brick piers.

Suspended concrete slab vs suspended timber floor cost

A suspended concrete slab costs more than suspended timber floor – and this hasn’t changed.  What has changed is the price differential between the two.

Say a year ago, a suspended concrete slab cost 15-20% more when compared to a timber floor with joists.

Today, with the substantial price hike in timber in general, this price differential is now about 10%.

So, if you would love a suspended concrete slab as part of your build, it may be time to revisit the costs and get your builder to quote.

Metal Framing

Timber has been the traditional framing material for a custom home because it was less expensive and easy to install.  However, with timber price increases, this means that the cost of timber framing is gone up in price.  It may be worthwhile to examine metal framing for your new custom home.

Metal framing is light-weight, durable and better resistant to flexing and warping.  It has the best strength to weight ratio, to withstand environmental impacts such as high winds and storms, cyclones.  It is fire-resistant and termite resistant as well as being environmentally friendly.

However, there are a few conditions to look out for.  Metal framing may not be suitable in coastal locations and the labour to install may be more expensive.

We think it is worthwhile to consider, given the cost of timber today.

Tip: Look into pre-fabricated materials as they can save you big bucks not just on the materials themselves but on labour costs as well.  Pre-fabricated materials are produced and formed off-site in bulk and delivered to your building site ready to be installed.  Technology has completely changed their look to a more natural and stylish ways to use around your new custom home.

Look at your builder

When choosing a builder when building costs have risen, it is important to look for one who is well established in the marketplace.  This is a builder who has the capacity to forward purchase materials and pass these savings on to you.

A builder who has been in business for a long time will have good connections with suppliers to secure better prices for their materials and supplies.  A builder with excellent long-term purchase history and accounts with major suppliers will be able to purchase materials at a better rate based on their volumes.

A good builder will buy in bulk to get better prices and pass these savings onto you.

For example, SBR Group has a well-established relationship with our timber supplier and was able to secure a large quantity of timber for its clients before the price hike.  These savings were passed on to our very grateful clients.

Read more about how to compare builder quotes here.

There’s no doubt building costs have increased and will add to your costs however, there are many ways you can minimise these price increases.

We would love to show where you can cut costs and still get the beautiful new custom home you always wanted.  SBR Group can help you not only in choosing materials that better fit your budget. But also help you in a more efficient and cost-effective build.  Call our team of designers today on 1300 676 166 or contact us here.