Construction costs to climb as builders face new road closure charges

Canberra's building sector is bracing for higher project costs after the ACT government introduced new fees for road and pathway closures, with Master Builders ACT warning that the charges could add thousands of dollars to residential developments.

The timing compounds existing pressures on construction costs, which have already strained the local housing market and deterred first-home buyers from entering the property market. Master Builders ACT flagged that these additional closure fees will be passed directly to developers and, ultimately, to homebuyers seeking new dwellings.

The warning comes as Canberra continues to grapple with housing affordability challenges. Any cost increases introduced by government regulation risk making new homes even less accessible for locals, potentially widening the gap between supply and demand that has characterised the local market in recent years.

Sources: citynews.com.au.

Compiled with AI assistance by The Daily Canberra from the linked public reports, and reviewed against the source facts.