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WA building costs up 40 per cent

According to BIS Shrapnel, the WA housing industry should expect a 4 per cent drop in starts, following a 40 per cent rise in building costs over three years and deteriorating affordability. The firm expects national building commencements to fall for a third straight year, dropping 5 per cent to 142,500 new homes in 2006-07, following a 4 per cent drop in 2005-06.

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