THE COST OF BUILDING.

Taranaki Daily News, 22 February 1922, Page 7

THE COST OF BUILDING.

COMING DOWN A GOOD DEAL. CONDITIONS IN WELLINGTON. “There has been a fall in the cost of building during the past twelve months, but it is still a long way off pre-war values,” stated a Wellington building contractor to a New Zealand Tirus representative. ‘‘At the present time there is a fair amount of building work in progress for residential purposes, but the work under construction is mainly completion work, and there is practically no new work in sight.” ‘‘Prior to the war a five-roomed cottage cost approximately £6OO to erect, and to-day the cost is £l4OO, while a year ago it was £l5OO. The class of timber used is heart covering and weather-boarding and 75 per cent, heart for frames and other materials. The price of bricks is still £4 10s per thousand, while in 1914 it ranged from £1 I6s to £2 8s per thousand. There is, however, every indication of values dropping shortly. In timber there has not been any appreciable reduction in price, and there does not appear to be any likelihood of it coming down. The reason for this is that millers have to go further back for timber, pay increased royalties, and the expense incurred in transit is high. The list prices are about the same as they were twelve months ago, but a slight reduction may be obtained f.o.r. at the mill. “There has been a decided fall in patent covering material, such as slates, beaver, and Upson boards during the past six months. Beaver and Upson boards show a reduction of 5s per 100, and. slating, which cost £4 10s a square twelve months ago, can now be purchased at £3 10s. Building asbestos has declined from £45 to £3O per 1000, and Continental manufacture may be secured for £3 less, but the high duty prevents its importation. Iron is £45 per ton. There is a pool in iron, and the price is fixed. One New Zealand firm is reported to have lost £27,000 in iron. Large quantities were purchased at £72 per ton, and is now being sold at £45. Very little iron is being imported, and there is little likelihood of shipments coming forward until present stocks are depleted and the trade in Great Britain becomes more stable.

“Compared with pre-war. wages have risen to a very high standard. In 1913 a carpenter’s wage was £3 6s per week, and to-day it is in the vicinity of £6 12s. There are many carpenters who are receiving 2s 9d per hour, and some are receiving 3s per hour. There is no question but that they must come down, and the reduction will probably be in the same ratio to the cut that is being' made by the Government. This will take place at an early date, and at the present time some builders, when engaging new men, are offering 2s 6d per hour. In April, the bonus will be considered by the Arbitration Court, and it is fully expected, now that the cost of foodstuffs has declined, the bonus will be eliminated. It is noticeable that there are more apprentices offering, and skilled tradesmen can now’ be secured in larger numbers than was the case tw’elve months ago. The coming winter will probably be a liard one from the point of obtaining employment, but 1 do not believe the set-back will be of long duration, but it is only reasonable to anticipate that the fall in the market values of the country’s products will reflect upon trade generally. ‘‘Wages play an important part in the constructional cost of a house, as does painting and plumbing. Take a £l5OO dwelling as an example. Labor costs approximately £3OO, painting £lOO, plumbing £lOO, and joinery work £lOO. Tn pre-war days labor for the building under review would amount approximately to £l5O, plumbing to £6O, painting £UO and joinery worl; a like amount, so it will be seen that timber does not play such an important part as far as cost is concerned as is generally supposed.”