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Building Material Price Index – December 2015

The index for the building materials price is compared to those of earlier periods to gauge the price movements of a representative list of Building Materials. The All Items Building
02 Apr 2016 09:35
Building Material Price Index – December 2015
Price

The index for the building materials price is compared to those of earlier periods to gauge the price movements of a representative list of Building Materials.

The All Items Building Material Price index for the December quarter of 2015 stood at 112.4, an increase when compared to the September quarter of 2015 which stood at 111.8.

 

Changes against the September quarter of 2015 are as follows:

  • Wood and Related Materials – increased by 0.4 per cent due to higher prices recorded for dressed hardwood framing grade and interior grade plywood.
  • Cement and Related Materials – increased by 0.1 per cent due to higher prices recorded for bond beam block.
  • Iron and Steel – increased by 0.2 per cent due to higher prices recorded for corrugated iron, roofing nail, galvanized louvre frame and joist hanger.
  • Plumbing ware – increased by 0.1 per cent due to higher prices recorded for standard gutter, pvc pipe, wash hand basin, washer, pvc glue and tap.
  • Paint and Glass – increased by 0.7 per cent due to higher prices recorded for metal primer, finishing coat, cemstik and multipurpose thinner.
  • Floor and Wall Tiles – increased by 0.4 per cent due to higher prices recorded for vinyl floor tiles, tile adhesives and lino plastic covering.
  • Door and Window Frames – no price changes was recorded for this group.
  • Electrical Products – increased by 0.5 per cent due to higher prices recorded for tube light, light bulb, lead wire, starter, 2 pin plug and 4 way power point.

 

ANNUAL 2015

The annual building material price index for 2015 stood at 111.3, an increase by 4.1 per cent when compared to 2014.

Increases were recorded in the price indices of wood & related materials (+1.5%), cement & related materials (+3.1%), iron & steel (+1.8%), plumbing-ware (+7.7%), paint & glass (+3.1%), door & window frame (+0.5%) and electrical products (+3.4%).

A decline was recorded in the price of floor and wall tiles (-2.2%).

The All Items Building Material Price Index as shown in graph 2 depict that there is a continuous increase in the price of building materials year after year.

In 2010 duty for building materials increased from 27 per cent to 32 per cent and this has remained unchanged.

This resulted in an increase in retail prices of building materials since it is the norm for these retailers to pass on costs to consumers.

In March 8th of 2016 the Attorney General Aiyaz Sayed-Khaiyum announced a reduction in duty on sawn timber and plywood including electrical cables and insulated electrical conductors.

Duty was reduced from 32 per cent to 5 per cent to enable those affected by TC Winston rebuild their homes, buildings and factories and this reduction will be enforced until the end of April which will be then be reviewed again.

The closing thoughts would be that the index is only headed higher.

Which means the cost to build a house has been continuously increasing, thus affecting rent and reducing the ability to purchase a comfortable home.

Is this imported inflation or increasing margins?  Will this affect rebuilding?

*This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at the HFC Bank, Peter Fuata.


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