The Costs of Build of Building a New House in Australia

So, you want to build a new home for your family in Australia? Before you start sketching your dream home, let’s talk about the most crucial factor: the cost. Without knowing how much money you’re going to need, you could be dreaming up a place that you can’t actually afford, regardless of which builder you choose. If you’re planning on taking out a loan, it’s even more essential to have a solid grasp of what you’re in for.

We’re going to break down all the factors that’ll impact the total cost of your new home. But before we dive too deep into the nitty-gritty, let’s start with a quick rundown and some rough figures to give you an idea of what kind of cash you’ll need to make your dream home a reality.

At the time of writing, the average cost of building a home in Australia in 2025 ranges from $1,800 – $4,500 per square metre, depending on your design, location, and the builder you choose. If you’re in a rush and need a ballpark estimate of the total cost, simply multiply both of these figures by the total square metres of your future property. This will give you a rough high and low estimate, which you can use to gauge whether you’re able to build your new home with the budget you have available now.

When it comes to building your new home, the cost of land plays a significant role in determining your overall budget. As of the September quarter in 2024, the median price of residential land in Australia hit a record high of $366,510, marking a substantial increase. Over the past year, land prices rose by 7.6%, a rate that outpaces both inflation and construction cost growth.

Nationally, capital cities experienced the most significant price jumps, with the median price in capital cities reaching $408,160, a 9.2% increase. In comparison, regional areas saw more modest growth of 2%, with the median price sitting at $281,910 (HIA Report).

Notably, Perth and Brisbane recorded the strongest growth among capital cities. In Perth, land prices surged by 38.6%, while Brisbane saw a 21.2% increase over the past year. Even though Sydney experienced a weaker building activity compared to other capitals, land prices still rose by 7.2%.

The rise in land prices has a direct impact on the cost of building a home. As land becomes more expensive, overall building costs increase, making it harder for some Australians to afford new homes. Regional markets such as the Illawarra and Geelong have also seen a significant uptick in land sales, as buyers look for more affordable options outside the capital cities.

HIA Economist Maurice Tapang pointed out that land prices have risen three times faster than inflation and five times faster than the growth in building materials costs. As affordability remains a challenge, it is crucial to factor land prices into your overall building budget. In addition, the continuing rise in land costs, coupled with higher construction costs and interest rates, makes it harder for new homeownership to remain within reach for many Australians.

The cost of building a home in Australia is often estimated based on the square metre (m²) of the home. Understanding this can help you plan your budget more effectively and understand how different factors, such as builder type, design complexity, and materials, affect the overall cost.

In 2025, building costs per square metre typically break down as follows:

The size of the home directly influences the overall cost, as larger homes will naturally require more materials, labor, and time to build. However, the cost per square metre tends to decrease as the size of the home increases. This means that a larger home may cost more overall but could have a lower cost per m² when compared to a smaller home.

For example, a 100m² home may cost more per square metre than a 300m² home due to economies of scale. While the overall price of a 300m² home is higher, the cost per m² may be lower because certain costs (like site preparation and labor) are spread over a larger area.

For a quick breakdown of average costs by state/territory, here are the latest figures from the Australian Bureau of Statistics (ABS). As of the 2022-2023 financial year, the national average cost of building a new home in Australia was around $394,981.

For a state-by-state breakdown, the ABS data for the 2022–2023 financial year is as follows:

These figures represent the average cost of building a home in each state or territory, though they don’t account for variations in home size or type. The national average of $394,981 shows the trend, but these numbers give a clearer idea of how location can impact the cost of building your new home in Australia.

For a 3-bedroom, single-storey home using cost-effective materials on a level block, the estimated cost is around $1,300 per square metre in 2025. This estimate falls on the lower end of the spectrum compared to other building materials and designs.

For those looking to build a single-storey full brick home using good quality materials and construction on a level block, the cost per square metre is likely to range between $1,600 and $1,900. Keep in mind that building on an unlevel block or opting for the highest quality materials will drive costs up significantly.

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For a 4-bedroom, single-storey home with low-cost materials, a veneer, and built on a level block, the cost could be around $1,900 per square metre. If you opt for mid-range materials, the price is likely to increase to around $2,400 per square metre.

If you have your heart set on a 4-bedroom, 2-storey home with high-quality finishes and materials, the cost per square metre can rise to approximately $2,900 per square metre. But if you want to go all out and hire an architect to design a custom home with premium materials and finishes, the cost per square metre can climb to $3,900 or more.

It’s important to note that building on a block that isn’t level or opting for premium materials can also significantly increase the cost per square metre. So, be prepared to account for these factors when calculating an accurate estimate for your new home build.

If you are looking to build a 5-bedroom home in Australia, be prepared to spend at least $4,300 per square metre, and the cost can go up significantly if you want higher quality materials or if the land is uneven.

When choosing a location to build your new home, it’s important to consider more than just the type of block you’re building on. Keep in mind that if you opt for a remote area, you might be faced with higher shipping costs for materials and scarcity of labour – leading to increased expenses.

Don’t forget to take into accessibility into account. If its hard for construction vehicles to enter the construction site, it can end up increasing the cost per square metre significantly. Plus, the ease of connecting to local services such as water, sewage, gas, and electricity also plays a role in determining the final site costs charged by your builder. The harder it is to make these connections, the higher the costs will be. If you want to stick to your original cost estimate, its best to choose an easily accessible, level block that’s located to a large town or city.

Hiring an architect to create a custom house design comes at a cost. The fees charged by an architect can add up quickly, and that’s just the beginning. When working with a custom design, your home builder in Perth will also have to charge more to cover the additional time and effort required to bring the design to life.

If you’re trying to keep costs of building down, consider working with a Perth building company that offers a range of standard designs to choose from. While hiring an architect to produce a custom home can be appealing, it can also significantly increase the overall cost of your build. But don’t worry, you can still have the option to customise aspects of your home when opting a standard design home. 

Ever heard of the term ‘feature creep’? Or in other words, adding more and more features to a product until it becomes bloated and expensive. You start off with a simple plan but as you refine the design, you keep adding new features and before you know it, your budget is blown out of the water.

The best way to avoid feature creep is to write down your must-haves before you speak to a builder and stick to them throughout the whole process. That way, you’ll end up with a house that has everything you need and nothing you don’t. Trust us, skipping unnecessary features can save you a lot of money in the long run!

Creating a complex backyard and garden design may seem like a great idea, but it can also increase the cost of building significantly. Extensive landscaping, water features, swimming pools, fencing and other features can easily set you back tens of thousands in expenses. So, if you have your heart set on an Olympic sized pool or a lavish garden, maybe hold off for while so they’re not included in the initial building costs.

Covid and instability in Eastern Europe have had a huge impact on the cost of materials, not just in the construction world, but other industries too. If you’re unsure on material costs, talking to a local home builder in Perth can provide an in-depth understanding of the cost of WA materials.

While less common than in previous years, you could still quality for government grants, depending on the type and location of your new build

Estimating the cost of a new build can be a real challenge, especially when you consider these unpredictable factors that are beyond your control. Things like fluctuating material costs or unexpected delays can really throw off your calculations. However, there’s a simple solution: always leave some extra room in your budget.

When it comes to budgeting for your new home, it’s wise to plan for the unexpected. By having a buffer in your budget, you’ll be better prepared to handle additional costs that may arise.

Now you should have a better grasp of the costs involved with bringing your dream home to life. However, its important to keep in mind that the figures may need adjustments as you delve into the finer details. Every decision you make, whether it’s the flooring materials or the bathroom fixtures, will have an impact on the overall cost.

If you need more information about the cost of building a house in Australia, don’t be shy – reach out to Residential Attitudes, one of Perth’s most reputable home builders. We’re seasoned pros, and one of the go-to home builders in Perth, with a passion for transforming dreams into reality.