Friday, 11 January 2008
Building Costs Going through the Roof
"Construction costs in December rose by 5.6 percent compared with a year earlier."
"Labour costs rose by 4.3 percent while prices for materials shot up by 6.3 percent. Other costs rose by six percent, Statistics Finland reported on Friday."
"However there were some signs of slowing growth in expenses. The month-on-month increase from November to December last year was just one tenth of a percentage point. "
"Labour costs edged up by 0.1 percent and other costs by 0.8 percent, but building material expenses actually declined by 0.1 percent."
My opinion is that office real estate bubble is draining all resources and pushes capacity to its limit.
The construction industry has learned the wrong lesson from the 90's . The money has now been redirected to the commercial real estate, and far too much money has gone there...