Malcolm Fleming: Certified Builders Chief Executive on good signals in the construction sector

Good signals in the construction sector with costs much lower than the industry expected. 

The latest Cordell Construction Cost Index shows a 1.1% rise in the three months to June. 

Annual growth is at 3.5% - below the long-term average of around 4%. 

Certified Builders Chief Executive Malcolm Fleming told Ryan Bridge with the backdrop of the Iran war, they're surprised by the minimal rise. 

He says there is enthusiasm from industry we're at the bottom of a cycle and on the way up. 

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Episode Transcript

Speaker 1 (00:00):
Cost a building house up one point one percent in
the three months to June. This is from cotality. Annual
cost growth up three and a half percent. Actually not
bad given the war price of oil. Building activity starting
to gain traction as well. Malcolm Fleming, New Zealand certified
build as CEO of me this morning, Malcol, get a
good morning, right, So not as bad as it could
have been. You thought it might be.

Speaker 2 (00:21):
A surprisingly low number. I'd have to say one point
one percent, as you said in your intro for two
to two, well below what expectations were given the backdrop
of their are war and the cost escalation we saw
in building project products. Soon after it has sort of

(00:42):
calmed down the building cost escalations we're seeing. So a
pretty good number and I think it's important also in
the note that the overall number of the twelve months
is below what Cotality are talking about is usual number
of four percent manually.

Speaker 1 (01:00):
So yeah, who's coming, When are we going to developer
is going to come back? Because it looks like they've
all kind of pulled back. They're all a bit nervous,
which is more to do with the market than the
cost of building. But what are you seeing hearing out there.

Speaker 2 (01:11):
I'm sting to hear that the market is slowly changing,
there is some enthusiasm for motion industry, that we are
at the bottom of the cycle coming suddenly come out
of it. We started to see some good signs, and
I've been on your show earlier this year talking about
but those were and then of course we had their
own war, so that then eroded some of those gains
and that positivity was starting to see that and back

(01:36):
in the twenty eighth of February when there are war
started and the month afterwards, we were very concerned about
cost escalations and that has played out, that is it
and slowed things down a little bit. That the actual
cost escalation has been less than we were thinking it
would be is a good sign when you marry that up.
It was only a week or two we were talking

(01:57):
about building consent numbers or year two end of May
being above where they were the corresponding time last year.
You're starting to be some good signals returning.

Speaker 1 (02:08):
Yeah, absolutely, Malcolm, good to see you, are good to
hear you, I should say, Malcolm Fleming news it on
Certified Builders CEO.

Speaker 2 (02:15):
For more from Early edition with Ryan Bridge, listen live
to News Talks. It'd be from five am weekdays, or
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