Are you aware – The current market conditions make this an outstanding time to build?

April 2016:
Are you aware that current market conditions represent an outstanding time to build a commercial building, either as an investment or as an alternative to leasing premises for your business?

The reason for this is that a number of favorable factors are lined up to create an absolute ‘stand-out’ period in which to build.

  • The tempo of non-residential building in W.A has slowed dramatically
  • The cost of building is actually lower than what it has been for several years
  • Property prices have declined over the last 12- 18 months
  • Low interest rates make borrowing very affordable

At present the tempo of non-residential construction in Western Australia is at one of its slowest periods for a considerable number of years.

According to Australian Construction Insights, the publication of the Australia Housing Industry Association, activity in Western Australia’s non-residential construction sector is in decline as a result of contraction in mining- related work.

This state of play is likely to continue until a recovery occurs in other sectors of the economy and this slowdown across the economy is having a flow on affect to other construction sectors particularly buildings for businesses such as factories, offices, warehouses, retail and recreation buildings. The net result of this is the current state of construction pricing

It has to be said that the ideal time to build is when the tempo of construction is slow. This is because competition is fiercest and labour is cheap compared to when the market is booming.

Furthermore, there are comparatively few delays in obtaining supplies and in getting your building finished. However you must also be careful in selecting contractors as tight market conditions and the resulting low margins and workflow often lead to contracting companies becoming unviable.

The next factor contributing to this remarkable scenario is beingthat property market in both residential and commercial property has been slow it has served to create an excellent buyer’s market for land.

When you couple this with low construction costs low interest rates you have exceptional affordability.

Some years ago when interest rates were high and yields were poor, it was cheaper to lease your business premises than build your own.

With today’s much lower interest rates that seem likely to stay where they are for some time to come, having your own building has become a far better option for investors and business owners.

Make an assessment of your project viability before you commit.

At Mapel Building we like to give you the certainty of knowing what you’re in for.

That is why at the outset we will supply concept drawings and firm pricing on your development options.

We are also able to refer you to our network of finance brokers, which have demonstrated that they are able to get developments financed for a greater range of projects even in tougher lending conditions.

Mapel Building can assist with initial concepts and budgets through to full development proposals, including 3D perspective drawings and walkthroughs to outline the various features of the building. We also undertake full council approvals and construction of client projects all together under one fixed price contract.
Our experience covers the construction of large and small scale factories, workshops, warehouses, offices, showrooms and retail and commercial unit developments.
If new premises are an attractive option for you why not speak with us?

Co-Owner, Director and Registered Builder, Andrew Roberts can be contacted on

9456 1955 or by email: andrew@mapel.com.au to discuss your project requirements.


 

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