Property research firm Core Logic's Cordell Construction Cost Index (CCCI), which measures the cost of building a 'standard' three-bedroom brick and tile house, rose by a record 3.4 percent in the three months ended September, compared with a 2.6 percent increase in the prior quarter.
The annual growth rate also hit an all-time high of 9.6 percent, eclipsing the previous record set in the second three months of the year.
"Overall dwelling consents are now declining year-on-year; however, costs are still a problem," CoreLogic chief property economist Kelvin Davidson said.
He said demand for a range of materials continued to outstrip supply within the construction sector.
Rising timber and metal prices, which were affecting framing and reinforcing, were some of the key drivers of cost pressures, he said.
Labour costs, which represent about 40 percent of the CCCI, have also jumped, he said.
Davidson said increasing building costs also affected existing home owners.
"If you had an unfortunate event happen to your house and you had to rebuild, [it is] very, very important to make sure that you keep your home insurance right up to date with the latest rebuild costs."
