Melbourne Residential Outlook Report 2024

8 Builders and construction costs 60% of developers strongly believe that there are not enough viable builders tendering for their projects. This aligns with the underlying sentiment that construction costs will continue to rise, albeit at smaller percentages than recent years. Builders are expected to price in a larger gross profit to compensate for years of losses and substandard returns. This marks a shift in the supply/demand equation from the past 24 months when price increases were driven by the supply chain or subcontractors (labour).