Friday, 2 March 2007

House construction costs skyrocket - house prices spiral

Carter Holt Harvey, one of the countries two biggest timber producers, are to hike timber prices by around 15%-20% to the Carters, ITM and Fletchers owned Placemakers outlets according to industry insiders. This rise will fuel an already overheated housing market and could see existing property prices rise by as much as 5%. Price rises are to be announced by CHH in the next two weeks.

Carter Holt Harvey, after purchasing the ITM builders supplies chain recently have effectively doubled their market share to 40%. CHH also supply 50% of their timber to Placemakers, giving CHH a very large footprint in the New Zealand market place. Any price increase by CHH is likely to be mirrored by Fletchers seeing flow on house price inflation hit an already overheated and increasingly toppy market.

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