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flag New Zealand’s building costs rose 0.5% in Q4 2025, driven by higher material prices, despite some declines in others.

flag Building costs in New Zealand rose 0.5% in the final quarter of 2025 and 1.1% over the past year, driven by higher prices for timber, cladding, concrete, diesel, and painting finishes, according to QV CostBuilder data. flag While some materials like plumbing supplies declined, overall construction costs remain stable, with a patchwork of increases and decreases across six major cities. flag Regulatory changes may add compliance costs, but low inflation and a reduced official cash rate of 2.25% are expected to keep 2026 favorable for construction. flag Non-residential building costs also rose slightly.

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