Road closure fees to push up building costs and housing prices, builders warn

New ACT road and pathway closure fees could add thousands of dollars to building projects and push up housing costs, according to Master Builders ACT, as reported by Canberra CityNews. The fees cover the cost of temporary access management, traffic control and site management during construction, but builders argue the pricing structure is disproportionate and will ultimately be passed to consumers.

For the residential construction sector, the fees represent an emerging cost pressure on top of existing challenges: land costs, labour rates, material inflation and compliance burdens have already compressed margins. If fees add materially to per-dwelling costs, they will flow into purchase prices at a time when first-time buyers are already struggling with affordability. The timing is particularly fraught given predictions that Canberra's property market may soften further in the new financial year.

The industry's formal warning suggests negotiations between builders and the ACT Government may continue, but the fee structure is in place. For prospective buyers and investors, the timing of new approvals will become even more critical: projects approved and commenced before fees take full effect may offer price advantages. For the government, the fees address a real cost (managing construction site traffic), but the amount and structure will shape investment decisions and housing availability for the next several years.

Sources: citynews.com.au.

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