New research by Compare the Market Australia has revealed that between 2020 and 2023, Toronto, Prague, and Singapore saw the highest increase in building costs.
According to the report, the cities with the lowest price increases were Amsterdam, Copenhagen and Birmingham.
Research conducted by Compare the Market Australia examined various different metrics such as construction costs and market activity in different cities from 2020 to 2023.
The research revealed that Toronto had an increase at 40.5 per cent which was mostly due to labour shortages and higher lending costs seeing a drop in the number of borrowers building homes.
While Singapore has long been an expensive location for home building, it had the third highest increase at 32.8 per cent with global events exacerbating the issue.
Compare the Market’s General Manager of General Insurance, Adrian Taylor, said homeowners need to factor in these rising building prices to their insurance to avoid becoming underinsured.
“If the price to build escalates beyond what your insurance would cover and owners need to rebuild their home after an incident, they could be left greatly underinsured,” said Taylor.“In these instances, owners won’t get enough of a payout to cover the expenses of rebuilding, meaning they will have to cover the difference out of pocket. This can be a serious expense that would come at the worst possible time.”
“Owners must regularly check and update their sum insured if needed so they have adequate cover,” he concluded.