23 Jun 2017

Spike in cost of building a home - QV

6:36 am on 23 June 2017

The cost of building a home has jumped 3.5 percent in the past year, according to the latest Quotable Value (QV) stats.

Rolleston house under construction

The cost of building in Christchurch is still the highest in the country, but is rising the least. Photo: RNZ / Rebecca O'Sullivan

The state valuer says the rise is more than double the previous year's increase.

Christchurch and Auckland are still the most expensive cities to build in. An average three-bedroom house in either city costs more than $270,000 for materials and labour.

However, costs have risen the most in Wellington, where house values have surged more than 20 percent in a year.

QV spokesperson Andrea Rush said the prices reflected regional demand for housing.

"It appears to be that where there is more building activity and demand, yes, then costs can rise a little faster than other places, that's what we're seeing here."

Ms Rush said costs had risen the least in Christchurch, as the house rebuilding after the 2011 earthquake tapered away.

The average cost of building a new home in New Zealand's four largest cities has risen a total of 25.5 percent since the previous peak of 2007.

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