According to the newly released construction cost data by the Australian Bureau of Statistics, house construction costs continued to rise at a strong annual rate of 5.7% in the September quarter of 2026 despite a downturn in overall market activity.   

Construction costs for other residential buildings also increased by a solid 4.1%, while non-residential building construction costs were up 4.8%.    

However, the magnitude of cost increase varied significantly by state and by building material. 

Highlights:  

  • Prices of copper pipes and fittings were up 37.6% from a year ago amid strong global demand for copper. 
  • Higher global oil prices have contributed to a 24.7% surge in the prices of plastic pipes and fittings which are petroleum-based products.  
  • The increase in house construction costs was the fastest in Tasmania (10.7%), followed by Western Australia and Queensland (both 7.8%).    

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