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. And 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 abode. 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.
COST OF BUILDING A HOUSE IN AUSTRALIA 2023
At the time of writing, the average cost of building a home in Australia may range from $1,300 – $3,900 per square metre. If you are in a rush and need a ballpark estimate of the total cost, just multiply both of these figures by the total square metres in 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.
For a quick and dirty average costs by state/territory, you can refer to the latest figures from the Australian Bureau of Statistics. According to ABS, as of April 2022, the average cost of a new house build in Australia is roughly $473,000. But if you want a breakdown by state or territory, we’ll have to rewind their 15-year study, published in April 2020. These figures are based on all kinds of new home builds and don’t account for size or type of property. Here’s a cheat sheet in order from the cheapest to the priciest territory/state:
- South Australia $275,000
- Tasmania $285,000
- Queensland $289,000
- Western Australia $298,000
- Victoria $327,000
- New South Wales $349,000
- Northern Territory $365,000
- ACT $440,000
The latest national average cost of $473,000 would seem to suggest that the above figures are no longer reliable for the purposes of an accurate estimate. However, they do at least give some indication of the effect that location may have on the cost of building your new home in Australia.
CALCULATING AN ESTIMATE FOR A NEW BUILD
If you want to calculate the estimate of the final cost of your new home build, there are several factors you should take into account. By considering these factors, you can get a better idea of what to expect and prepare accordingly. So, lets dive in and explore the main elements that can impact the final cost of your new build.
HOW MUCH DOES IT COST TO BUILD A HOUSE WITH 3 BEDROOMS?
For a 3-bedroom, single-storey weatherboard home using cost-effective materials on a level block, the estimated cost is around $1,300 per square metre. 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 available will drive costs up significantly.
HOW MUCH DOES IT COST TO BUILD A HOUSE WITH 4 BEDROOMS?
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.
HOW MUCH DOES IT COST TO BUILD A HOUSE WITH 5 BEDROOMS?
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.
CAN YOU REDUCE THE COST OF BUILDING A HOUSE WITHOUT COMPROMISING ON QUALITY?
Building a house can be expensive, but that doesn’t mean you have to sacrifice quality to keep the costs down. But how exactly can you go about achieving this?
- Choose the location carefully – 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.
- Hire a Building Company That Uses Its Own House Designs – 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 builder 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 home builder 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.
- Focus on Your Core Requirements – 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!
- Choose Simple Garden and Backyard Designs – 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.
FACTORS OUTSIDE OF YOUR CONTROL THAT MAY INCREASE THE COST OF YOUR NEW HOME
When it comes to the question “How much does it cost to build a house?” most builders typically focus on factors like design, size, location and material quality. But there are a few other considerations to bear in mind – ones that are beyond your control yet have the potential to impact your building costs.
- Supply Chain Costs – the recent global pandemic and the uncertainties in Eastern Europe have had a huge impact on the cost of materials, not just in the construction world, but other industries too
- Government Grants – 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.