Consumer price index (CPI) figures released this month show that the cost of building a new house was 7.6 per cent higher for the March 2014 quarter than the same quarter last year. However, in the December quarter last year the cost was 9.5 per cent higher than the year before. Further, the new build inflation peaked at 12 per cent in March 2013.
So although the cost of new builds in Christchurch is still on the rise, it is not increasing as sharply as the previous year. This plateau in the growth rate of the industry in Christchurch may just be temporary. With many more residential and commercial builds and repairs on the horizon in the region, it is possible that we have not yet seen the peak of construction costs in Canterbury.