Freeze helping building

Press, 13 December 1982, Page 4

Freeze helping building

PA Wellington The price freeze is dampening building costs and percentage increases could ■ be back to single figures by next June, says the Building Industry Advisory Council. The council has just published comparative movements in prices and cost indices for building, for the year ended September 30. It expects average cost increases for building and construction in the 1982-83 financial year to be about 14

per cent. The council said the "core" 1 indices for building and con- ’ slruction showed signs of I slowing in the last quarter. < and the latest figures confirmed that. < The 8.1.A.C. building cost i index increased 13.8 per cent ; in the 12 months ended Sep- < tember 30. down from 16.5 per cent in the 12 months to ( June 30. I The Ministry of Works and ; Development ' construction i cost index was up 14.3 per cent, compared with 16.2 per cent in the June year.

The council said the figures showed that the wage-price freeze was now having an impact on building costs. , The Institute of Valuers cost index rose 18.3 per cent in the September year (June year. 23.4 per cent), said the council. The producers price index (construction) was up 15.5 per cent (June. 18.7 per cent), and the consumers price index rose 16.6 per cent (June. 17 per cent). 8.1.A.C. said that the valuers' cost index and the consumers price index usu-

ally lagged behind the other indices. "Rapid movements in housing prices late in 1981-82 are still affecting the consumer price index, and are tending to keep it higher than the underlying rate of inflation." the council said. It expects building costs and price indices to show a further significant drop in this. December-March, quarter, and the June quarter of 1983-84. The council said on present trends, rates of increase could be back in single figures by June. 1983.