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Private construction is reactivated and costs increased at a slower pace in July - Infobae
Source:
August 21, 2024
In this context, a slowdown in the increase in material prices is noted. However, some inputs registered significant increases. Among those that increased the most were round iron and the installation of water pipes.
By Jose Luis Cieri
The year-on-year cost climbed to 240.29%, slowing down compared to June, when it reached 260.73%.
In July, private construction showed signs of recovery, accompanied by a slowdown in the increase in material costs. According to the Apymeco index, which is surveyed by the Association of Construction SMEs of the Province of Buenos Aires, in the seventh month of the year the price per square meter of construction registered an increase of 1.32%, reaching 1,414,306.66 pesos.
This is the lowest figure recorded since June 2022, according to the aforementioned index.
The year-on-year cost climbed to 240.29%, slowing down compared to June, when it reached 260.73%, and May, when it was 264.97%. For the year, the cumulative increase is 46.97 percent.
Gustavo Serafín Marín , president of Apymeco, explained to Infobae the factors behind the construction index for the last month surveyed, which registered a slight increase of 1.32%: “The variations in the prices of materials downwards in several cases, labor and third-party provision in July compared to June were decisive. These components, together, represent 82.33% of the total construction cost.”
July 2024
Source: Association of Construction SMEs of the Province of Buenos Aires (APYMECO)
Since the increase in the cost of construction in pesos is not in line with the variations of the informal dollar, the cost in dollars may increase or decrease depending on its behavior, the institution reported.
Businessmen in the sector emphasized the recovery of construction. In this regard, they indicated that cement shipments showed an increase of 25.9% compared to the previous month and a decrease of 14.4% compared to 2023.
In another sector analysis, the Construya Index recorded a seasonally adjusted monthly recovery of 12.09% ; however, sales remained 16.50% below the July 2023 level.
Source: Association of Construction SMEs of the Province of Buenos Aires (APYMECO)
In contrast, the products that saw the greatest decrease in value when comparing one month with the previous were porcelain tiles (0.75%), bathtubs (4.59%) and water heaters (6.67%).
“The impact of materials on the total cost of construction is currently 41.76%; this means that the ratio of expenses that make up the cost of construction is relative and their impact may vary. The evolution of the cost of products, as of December 2023, showed a continuous decline, going from 35.39% to 2.06% in July of this year, which shows stability,” said Marín.
The cost of a bathroom or kitchen remodel depends on the interior fixtures, square footage, finishes, quality of furniture, location, and contractor experience.
“In annual terms, the construction cost accumulated through July is 239.21%, and it was reduced compared to June, which had registered 263.05%,” said Emilio Racic , from a construction company that operates between CABA and Greater Buenos Aires.
Although remodeling a complete kitchen today costs no less than $6,500,000, little by little, those who are committed to improving their home are beginning to become more active.
Racic clarified that “several factors influence the total cost of a bathroom or kitchen remodel: the internal installations, the square meters of the space, the chosen finishes, the quality of the furniture, the geographic location of the home and the experience of the contractor.”
Compared to last December, several products fell by up to 20% due to excessive prices, especially those indexed to the dollar. A set of black bathroom faucets currently starts at $180,000, when last January it was around 200,000 pesos.
Some registered reductions of 15%, with additional discounts of 5% to 10% for specific purchases, such as paint (for example, a 20-liter bucket of interior latex that two months ago cost $41,000 now costs $35,000), a strategy that seeks to maintain competitiveness without directly reducing list prices, according to industry sources.
Several materials still have room to continue falling due to various market factors, such as paints
Pablo Gaytan , from Ciudadela, said that the price decrease is largely due to a 40% drop in demand, accompanied by a strong loss of margins in industry and commerce. “We are working with subsistence margins and trying to exhaust the stock,” he said.
Most of the current purchases are intended to continue work already started, although at a slower pace. Construction companies are still active and acquiring materials.
“Employees look for deals and price, but not for quality. End consumers look for the cheapest options and often ask for 'the cheapest kitchen ceramics you have',” Gaytan added.
To encourage purchases, financing is offered in 3 interest-free installments, and in 6 and 12 installments with a card with a monthly interest rate of 5%. There are also discounts of up to 20% for cash payments, stockpiles up to 180 days, and for construction companies, checks at 30 and 45 days.
www.buyselba.com
Source:
August 21, 2024
In this context, a slowdown in the increase in material prices is noted. However, some inputs registered significant increases. Among those that increased the most were round iron and the installation of water pipes.
By Jose Luis Cieri
The year-on-year cost climbed to 240.29%, slowing down compared to June, when it reached 260.73%.
In July, private construction showed signs of recovery, accompanied by a slowdown in the increase in material costs. According to the Apymeco index, which is surveyed by the Association of Construction SMEs of the Province of Buenos Aires, in the seventh month of the year the price per square meter of construction registered an increase of 1.32%, reaching 1,414,306.66 pesos.
This is the lowest figure recorded since June 2022, according to the aforementioned index.
The year-on-year cost climbed to 240.29%, slowing down compared to June, when it reached 260.73%, and May, when it was 264.97%. For the year, the cumulative increase is 46.97 percent.
Gustavo Serafín Marín , president of Apymeco, explained to Infobae the factors behind the construction index for the last month surveyed, which registered a slight increase of 1.32%: “The variations in the prices of materials downwards in several cases, labor and third-party provision in July compared to June were decisive. These components, together, represent 82.33% of the total construction cost.”
July 2024
Source: Association of Construction SMEs of the Province of Buenos Aires (APYMECO)
Since the increase in the cost of construction in pesos is not in line with the variations of the informal dollar, the cost in dollars may increase or decrease depending on its behavior, the institution reported.
Businessmen in the sector emphasized the recovery of construction. In this regard, they indicated that cement shipments showed an increase of 25.9% compared to the previous month and a decrease of 14.4% compared to 2023.
In another sector analysis, the Construya Index recorded a seasonally adjusted monthly recovery of 12.09% ; however, sales remained 16.50% below the July 2023 level.
Source: Association of Construction SMEs of the Province of Buenos Aires (APYMECO)
Ups and downs
Among the materials that increased the most month-on-month were round iron (2.15%) and the installation of water pipes, mainly because they require earthworks, and steel-derived products, which also increased sharply in the last 12 months, with a rise of 33.39% between June and July.In contrast, the products that saw the greatest decrease in value when comparing one month with the previous were porcelain tiles (0.75%), bathtubs (4.59%) and water heaters (6.67%).
“The impact of materials on the total cost of construction is currently 41.76%; this means that the ratio of expenses that make up the cost of construction is relative and their impact may vary. The evolution of the cost of products, as of December 2023, showed a continuous decline, going from 35.39% to 2.06% in July of this year, which shows stability,” said Marín.
Another measurement with a slight increase
The index of the Argentine Chamber of Construction (Camarco) also showed that the cost of construction increased by 2.10% in July. This measurement, which is published monthly, expresses the variation in the cost of a typical building in the city of Buenos Aires.
The cost of a bathroom or kitchen remodel depends on the interior fixtures, square footage, finishes, quality of furniture, location, and contractor experience.
“In annual terms, the construction cost accumulated through July is 239.21%, and it was reduced compared to June, which had registered 263.05%,” said Emilio Racic , from a construction company that operates between CABA and Greater Buenos Aires.
Although remodeling a complete kitchen today costs no less than $6,500,000, little by little, those who are committed to improving their home are beginning to become more active.
Racic clarified that “several factors influence the total cost of a bathroom or kitchen remodel: the internal installations, the square meters of the space, the chosen finishes, the quality of the furniture, the geographic location of the home and the experience of the contractor.”
Opportunities
The materials that have recently seen the biggest price reductions are those related to finishes, such as taps, sanitary ware, ceramics and porcelain.Compared to last December, several products fell by up to 20% due to excessive prices, especially those indexed to the dollar. A set of black bathroom faucets currently starts at $180,000, when last January it was around 200,000 pesos.
Some registered reductions of 15%, with additional discounts of 5% to 10% for specific purchases, such as paint (for example, a 20-liter bucket of interior latex that two months ago cost $41,000 now costs $35,000), a strategy that seeks to maintain competitiveness without directly reducing list prices, according to industry sources.
Several materials still have room to continue falling due to various market factors, such as paints
Pablo Gaytan , from Ciudadela, said that the price decrease is largely due to a 40% drop in demand, accompanied by a strong loss of margins in industry and commerce. “We are working with subsistence margins and trying to exhaust the stock,” he said.
Most of the current purchases are intended to continue work already started, although at a slower pace. Construction companies are still active and acquiring materials.
“Employees look for deals and price, but not for quality. End consumers look for the cheapest options and often ask for 'the cheapest kitchen ceramics you have',” Gaytan added.
To encourage purchases, financing is offered in 3 interest-free installments, and in 6 and 12 installments with a card with a monthly interest rate of 5%. There are also discounts of up to 20% for cash payments, stockpiles up to 180 days, and for construction companies, checks at 30 and 45 days.
www.buyselba.com
