Road closure fees will add 'thousands' to Canberra building costs, warns Master Builders

Builders developing homes and commercial projects across Canberra are facing fresh cost pressures from new ACT road and pathway closure fees, with the Master Builders ACT warning the charges could add thousands of dollars to individual projects. The fees cover the cost of closing roads and pathways during construction, a necessary step for many building works but one that now carries a direct cost to developers.

At a time when Canberra's construction sector is already navigating elevated material costs and labour rates, the new fee structure presents a particular challenge for residential building. Master Builders ACT has raised concerns that these additional expenses will be passed on through higher home prices, potentially affecting affordability in a market where first-time buyers are already stretched.

The timing of the fee introduction may also influence the pace of development approvals and project starts, as builders factor the new costs into feasibility assessments. For the ACT Government's housing supply objectives, the fees represent a competing pressure against its goal of increasing residential construction and improving housing accessibility for Canberra residents.

Sources: citynews.com.au.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.