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Building in Perth right now: what it costs and what’s moving
What is the market actually doing, and can we trust the numbers?
It’s a question every developer and asset owner is asking right now.
This is a clear read on the Perth construction market, based on what we’re seeing across live projects this quarter — where pressure is building, and what it means for feasibility, timing and delivery.
Tier 1 Capacity is tightening
At the top end of the market, capacity is becoming increasingly constrained. Major contractors are carrying full pipelines, with demand expected to tighten further into the second half of the year. Projects requiring Tier 1 builders are already competing for limited start dates.
Below the ~$80M mark, the field remains more competitive. At the upper end, however, the pool is thinner and timing is playing a much greater role in securing delivery.
Long-lead items are driving programme risk
Procurement timelines continue to shape delivery.
Structural steel, switchboards and façade systems are typically sitting at 12+ weeks, often extending well beyond that. Steel in particular is sitting firmly on the critical path, with WA lead times consistently longer than the eastern states.
The implication is clear: delays here don’t just impact cost — they directly affect programme. Addressing this at feasibility stage, rather than at tender, is becoming increasingly important.
Trade pressure remains across key disciplines
Trade availability is still under pressure across the board.
Electrical, mechanical, formwork and fit-out trades are all stretched, with labour shortages continuing to influence pricing. Current projections indicate WA requires approximately 55,000 additional construction workers, and day rates have already shifted upwards since last quarter.
Where the pressure is building
Demand is being driven in part by the scale of projects currently underway.
Student accommodation is a key contributor, with more than 4,200 beds under construction across Perth. This sits alongside a growing pipeline of build-to-rent and residential developments, adding further pressure to contractor capacity and trade availability.
What this means for cost planning
The reality is simple: A cost plan is only as strong as the market conditions behind it.
Understanding contractor appetite, procurement timelines and trade capacity is critical to getting an accurate read.
Working independently between client and contractor gives us visibility of real project conditions — not just headline pricing — and allows for more informed decision-making from the outset.
Looking ahead
Conditions in the Perth construction market remain active, but constrained.
Projects that are well-timed, well-scoped and grounded in current market realities will continue to move forward with greater certainty. Those that aren’t, will feel the pressure in time, cost, or both.
We publish these insights quarterly to reflect what’s happening on the ground across WA.
To stay across what’s happening on the ground in WA construction as the market evolves, follow Cygnet West on LinkedIn or subscribe to our quarterly updates.
