BUILDING COSTS

Evening Star, Issue 22687, 29 June 1937, Page 2

BUILDING COSTS

ENORMOUS INCREASE RECORDED SOME INTERESTING COMPARISONS ABNORMAL FRIGES FOR TIMBER During the 12 months it is roughly estimated that building costs have risen 33 1-3 per cent. It would also appear that prices in Dunedin to-day are higher than they have ever been in the history of the trade. Despite these abnormally high prices, however, exceptional activity prevails in practically all types of buildings, although in some cases building schemes have been amended in order to curtail expenditure. Whilst increased labour costs are an important factor in to-day’s high prices, there are several other factors which have contributed substantially to existing conditions. That the building trade generally is concerned over the question of prices is no secret. In some quarters there are fears of a reaction to the present conditions, with a result that a certain amount of building work has been postponed. In several instances there have been instructions that plans for larger buildings should be revised by the architects so that fresh tenders may be called) in the hope that the building cost would be reduced to what the owners considered the price that should be paid to make the building proposal satisfactory from the commercial standpoint. Commenting on the question of trade prices, a Dunedin timber merchant said that there were several factors to be taken into consideration. “ Everyone knows,”, he said, “ that wo have passed through one of the greatest depressions' the building trade has , ever known. During this time prices of building material were cut to bedrock, and were in some instances below cost. The re- | suit of this price-cutting was evident when one remembered that_ several timber merchants and sawmills were threatened with closing down.” FREIGHTS INCREASE 100 PER CENT. Dealing with the prices for imported timbers, he said these had certainly increased during the past six months. “ Th>s.” he added. “ was brought about jn the first place by the extra duty imposed on logs from the United States of America by the New Zealand Government. Another _ contributing factor was the waterside workers’ strike in America. It tied up more than 200 ships for several months, thus curtailing freight space. When the strike ended there were enough orders in America to fill 500 ships. This gave the shioowners the opportunity to increase freights, which are now 100 per cent, above normal. It will take many months to bring them down again.” COMPARISON OF COSTS. The following table giving comparative costs of_ imported and New Zea-land-grown timbers provides a striking illustration of how prices have risen:— Oregon. 1929-30. 1937. Select, ex wharf 31s 6d 68s Od Merchantable, ex wharf 25s 6d 48s Od I Select, ex yard 56s Gd 33s 6d Merchantable, ex yard 40s 6d 63s Od In 1929-30, the ex-yard prices were subject to 15 per cent, discount. Redwood. Ex yard (2in basis) ... 65s Od 105 s Od Red pine. Ex mill. Ex yd. Ex mill. Ex yd. 1931. 1957. Scantlings 20s 6d 27s Od 28s Od 28s Od Flooring (4in x lin) * 32s Od 41s Od 49s 6d 51s 6d Lining (4iu x Ain) 24s Od 29s 6d 37s 6d 39s 6d Wallboards (Sin) 34s Od 43s 6d 50s 6d 52s 6d The ex-mill prices in 1931 were also subject to substantial discounts—scantlings from 15 per cent, to 25 per cent.; other lines quoted, 10 per cent. To-day’s Oregon prices are compared with those ruling just at the beginning of the depression, while to-day’s red pine prices compare with those in 1931 when cut-throat competition prevailed, with the result that in the case of scantlings merchants were selling below cost. About two years ago, prices and discounts were stabilised by the Timber Merchants’ Association and today’s prices have been fixed on that

basis, tho trade discount being 5 per cent. To-day’s prices also include tho sales tax. PRE-WAR COSTS, f Discussing to-day’s building costs with a city architect, some illuminating figures wero produced, showing the cost of building before and during the Great War. Ho brought out plans ot houses and the tenders received for their erection, and it was apparent that building costs have increased since those days by a staggering degree. One house built in 1915 for £663 provided a floor space of 1,900 square feet. It was erected on a sloping section, necessitating extra foundations; it was built of wood, had a tile roof, and the interior plastered throughout. On to-day’s price of about 17s 6d a square foot, the same house would cost about £1,660. In 1914 a wooden house with a tile roof —providing two bedrooms, a drawing room. a dining room, kitchen, scullery, largo hall, and closed-in verandah, was _ erected 10 miles out of tho city for £SBO. Today’s price would bo nearer £1,300. _ Likewise, a two-story double brick house, with internal brick and plaster partitions and tile roof, would cost £9OO in 1916. but to-day the same house would cost £1,850.