Western Australia has experienced the highest rise in building trade prices around the nation, with costs rising 15.3 per cent in the past year.
The latest Housing Industry Association's (HIA) trade report shows that while quarterly costs rose by just 1.6 per cent, WA's building costs over the year soared in comparison to other states, with second place Brisbane rising by 9.7 per cent.
HIA Chief Executive, Mr Chris Lamont said that skilled labour shortages contributed to the nation wide hike.
"Shortages pose a real concern for new house prices as trades prices combined with rises in the cost of materials such as steel would increase the cost of new houses and add to housing affordability woes," he said.
While trade shortages were most apparent in Western Australia, Queensland and Adelaide, Mr Lamont says that Government funding to establish trade centres in schools is an encouraging move.
"The Government's commitment of funding to skills and training commencing with $2.5 Billion to establish trade centres in schools is a positive start. We now need to look at practical short courses for the industry that will fast-track skills delivery. There is also a need to better promote the opportunities that exist within the industry," he said.
