Perth is the 10th most expensive city in the world in which to build and prices are set to rise the West Australian newspaper announced on August 25 2008.
A major factor in the rising prices is Western Australia's gas crisis.
Rider Levett Bucknall Director Mr Alastair McMichael's expertise in this area was sourced: "Next year [Rider Levett Bucknall] were forecasting 9.5 per cent growth in costs until the energy crisis and the jump in fuel prices, but now we would say more like 11 per cent growth."
Mr McMichael also commented on the affects of the resource boom in Western Australia on prices. He believes that the boom was preventing a predicted stabilisation of construction costs however unsustainable profit margins would eventually force a cooling in the construction cycle.
When construction costs in Western Australia finally stabilise Mr McMichael said that prices were still expected to remain high due to lucrative rental returns in the commercial, energy and retail sectors. He expects strong population growth to also keep costs high.
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