How much does it cost to build a house?
If you’re thinking about building your own home, a key element underpinning most of your construction decisions will revolve around the cost. Let's find out how much does it cost to build a house in Australia.
Building a home is a great way to create a space that suits your needs perfectly. But how much does constructing a home cost? The simplest answer is it depends on the type of property, materials, builder, and the like. There’s no singular number especially if you’re building a custom property.
To help new and experienced homebuyers, we put together this article that includes a breakdown of the costs of building a new home in Australia:
How much does building a house cost?
The average cost of a home in Australia could be around $432,000 to $926,000. Building home costs vary depending on the type of home and location, among other factors.
According to insights from Rider Levett Bucknall, building costs will increase in 2025. Below are estimates for the cost of building a house in the following cities per square metre:
- Sydney: $2,100 to $6,400
- Melbourne: $2,000 to $4,300
- Adelaide: $1,740 to $3,800
- Brisbane: $2,500 to $4,500
- Gold Coast: $1,600 to $4,400
- Canberra: $1,840 to $3,650
- Darwin: $1,900 to $2,950
- Perth: $2,200 to $4,100
Construction costs change depending on the level of finish and the number of bedrooms. The building cost can range from $2,000 per square metre for three-bedroom properties with low finish to upwards of $8,000 per square metre for four-bedroom homes with high-level finishes.
What affects the cost of building a home?
Understanding how each aspect of the home build affects the overall cost is essential. This will give you a better idea of what you can do with a certain budget. Of course, we all want to build an affordable home without skimping on the quality—but with limited funds, you need to know where to save and where to splurge.
Land and location
The first thing you need to consider when building a home is buying the land. You’ll often hear people say that the value of your home is all in the land, which is why for some, it’s the most expensive part of the whole house build.
The price of land will depend on its location and size. The land’s position and orientation can also affect the total cost of the build. For example, land that slopes will cost more to build on, and land that needs to be cleared of trees or rocks will also come with an added expense down the track.
The state or territory you’re building the house in will also affect the overall cost. Each state and territory has its own regulations and different amounts of taxes, insurance, fees, and other costs. States and territories differ when it comes to stamp duty and lax tax laws.
Materials used and appliances installed
Higher-end, luxury materials can increase your overall construction costs significantly. You can lower the cost of your build by choosing less expensive materials. Instead of using hardwood and marble finishes, you can opt for softwoods, tile or vinyl. Some construction materials like concrete can also change costs depending on the location.
If you’re on a tight budget and don’t want to overspend, it’s best to look at the type of materials you want to use and which parts of the home you want to use them in.
Also, consider the types of appliances and fixtures you want installed in your home. Using designer fixtures and appliances will up the cost of the build, as well as the installation if they have a more complicated set-up compared to the standard appliance or fixture.
Builder or architect and labour
The builder or architect you hire will also impact the cost of your home. Before hiring a builder or architect, it’s always best to see their rates and past work first. Evaluate their prices to see if they fit your budget.
You may also have to pay for labour costs for electricians, plumbers, carpenters, and other skilled professionals when building your home. The cost of labour can differ based on the level of skill and complexity of the build.
Size of the home
Last but not least, the size and type of home you’re planning on building will affect its cost. A simple two-bedroom bungalow will have a far different cost than a four-storey home with three baths and luxury fittings. The bigger the home and the more features it has the more experience it’s going to be because of the additional materials and longer build times.
When choosing a house design, keep your budget in mind. Make sure the house you’re building fits within your means while still providing you with all the comforts you need in a home.
Can you save money on home construction financing?
Another factor that impacts the overall cost of your home build is your home construction loan. Your loan’s interest rate plays a significant role in how much you pay over the life of your home construction finance. The lower the interest rate, the more you save on your home construction loan.
When shopping around for a home construction loan, it's best to look at the comparison rates as these tell you the true cost of the loan with fees included.
Find a low rate construction at loans.com.au!
If you’re looking for a home construction loan with competitive rates and useful loan features, get in touch with loans.com.au. We have a range of construction loans for you to choose from!
Speak with one of our friendly lending specialists by calling 13 10 90 to learn more. Or apply online today so you can start your home construction sooner!
Find out in under 2 minutes if you qualify for one of our low rate home loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
