How Much Does It Cost to Build a House? Understanding Construction Costs
Ever dream of having your own home, then stop and think, how much does it cost to build a house? You’re not the only one. Lots of people in the country and around the world ask the same thing when they have dreams and plans to build a home.
Now, building a home in Australia, just like anywhere in the world, is a significant financial commitment. Understanding the various costs involved in such an endeavour can help you budget effectively and secure the right financing. Fluctuating material prices, labour costs and government regulations are just some of the things you need to consider before having an architect draw up your blueprints.
To ensure project completion without the risk of running out of funds, it’s essential to be well-informed before breaking ground. This guide will strive to show you the key factors influencing construction costs, giving you an overview of average costs and financing options to help you achieve your dream home.
Average Construction Costs in Australia
The construction cost to build a house in Australia varies significantly based on location. On average, the national cost per square metre ranges between $1,500 and $3,000. Here’s a rough breakdown of average construction costs across different states:
- New South Wales: $1,900 – $4,000 per sqm
- Victoria: $1,800 – $3,800 per sqm
- Queensland: $1,700 – $3,500 per sqm
- South Australia: $1,500 – $3,200 per sqm
- Western Australia: $1,600 – $3,400 per sqm
- Tasmania: $1,500 – $3,000 per sqm
While these are general estimates, the final price of a home build depends on individual choices and circumstances
How Much Does It Cost to Build a House: Other Factors That Matter
The answer to the question of “How much does it cost to build a house?” isn’t as straightforward as some people want to think. This is because the cost of building a home varies due to several key factors. Here are some of them:
Your Location
The cost of building a house varies depending on where you plan to build. Urban areas, particularly in capital cities like Brisbane and Sydney, tend to have higher construction costs due to increased demand for labour and materials. Regional areas may be more affordable. Note, however, that access to skilled trades and transportation of materials can sometimes offset savings.
Design and Size
The size and complexity of your home design can also impact construction costs. A larger home will naturally require more materials and labour. Complex architectural features, custom layouts and multi-story designs can also increase expenses. Choose the right home that suits not only your lifestyle and your preferences but also your budget.
Materials and Finishes
Another factor that plays a role in your overall construction costs is your choice of materials and finishes. When you pick high-end materials like natural stone, timber flooring and custom cabinetry, expect such choices to push up your build expenses. Budget-friendly alternatives such as laminate, engineered wood and prefabricated components can help reduce costs but note that these may not be as durable as the premium options.
Sustainable and energy-efficient materials may also have higher upfront costs but these can lead to long-term savings through lower energy bills. This is why many Australian homeowners are opting for eco-friendly building materials, solar panels and smart home technology – to enhance efficiency.
Builder and Labour Costs
Choosing between a custom builder and a project home builder can also impact pricing. Custom builders offer flexibility but typically charge higher rates. Project builders, on the other hand, provide set designs at a more affordable price. Labour shortages and market demand can also drive up construction costs. This is why it’s essential to get multiple quotes and choose a reputable builder before moving forward.
Additional Expenses to Consider When Building a House
Apart from construction costs, there are other expenses to factor into your budget when you plan on building a house. These include the following::
- Site Preparation & Land Costs: Clearing, levelling and preparing the land can add significant expenses, particularly if the site requires extensive work.
- Council Approvals & Permits: Homeowners must account for fees associated with council approvals, building inspections and compliance checks. These are necessary to ensure the project meets regulations.
- Utility Connections: The cost of connecting essential services such as water, electricity, gas and sewage should also be worked into the budget.
- Landscaping & Exterior Works: Features like driveways, fencing and gardens are often overlooked. These play a crucial role in completing a home’s exterior and enhancing its functionality and will also add to the cost of building a house.
Finance Your Home Construction with the Help of North Brisbane Home Loans
So, now that you know what to do to find out how much to build a house in Australia, the next step is to find the right financing for this plan. This move requires careful financial planning and an understanding of the many factors that influence costs. From selecting the right builder to exploring construction loan options, being well-prepared can make the process smoother and more cost-effective.
Consulting with a mortgage broker here at NBHL may not necessarily help you answer the “How much does it cost to build a house” question but we can help you identify the right funding options for your project. If you want to know what the options are when it comes to construction loans for your home build, contact us and we will be happy to help.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
