How much to build a house?

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In Australia, how much does it cost to build a house? Depending on where you live, the average cost to build will generally range between $1,400 and $5,900 per square metre.

While living costs continue to rise due to inflation and the effects of the pandemic trickle down through the economy, many Aussies are wondering if the average cost of building a house has changed. Unfortunately, building costs are actually rising faster than inflation across all major Australian markets for a few different reasons.

According to ABS data, pre-pandemic the average cost to build a house was roughly $320,000. In April 2022, updated data revealed that building a new house cost on average $473,000. This inflation is related to increased construction costs, spurred on by supply chain issues.

A range of other factors will affect the cost to build a house. In this guide, we explore the cost to build a house per m2, what affects construction prices, the effects of the pandemic on building new homes, how long it takes to build a house in 2022, and more.

Read more: Should I build or buy a house?

How much does it cost to build a house per square metre?

How much is it to build a house? According to quantity surveyors Rider Levett Bucknall (RLB), building costs per m2 in Australia currently range between $1,400 and $5,900 per square metre. The report has revealed the cost to build a new home across all major Australian cities for the first quarter of 2022, including single and double-storey dwellings.

Naturally, the cost to build a house in Sydney is at the higher end of the scale, with estimates of up to $5,900 per m2, while Adelaide, Darwin and Perth offer more affordable new house build prices. Perth house build prices start from $1,400 per m2.

Cost to build a house Sydney: $1,960 to $5,900 per m2

Cost to build a house Melbourne: $1,860 to $4,000 per m2

Cost to build a house Brisbane: $1,800 to $4,000 per m2

Cost to build a house Adelaide: $1,580 to $3,450 per m2

Cost to build a house Darwin: $1,800 to $2,800 per m2

Cost to build a house Perth: $1,400 to $2,700 per m2

The cost to build a new home will be much higher for an architecturally designed home than a basic build that starts from $1,400 per square metre. For a high-end home, you can expect to pay more along the lines of $3,000 to upwards of $5,000 per square metre.

How much does it cost to build a 3 bedroom house in Australia?

New house pricing to build a 3 bedroom house on a standard home build of around 150 to 170m2 will usually start from $200,000. This will be for a basic, budget-style home. A standard home build will see prices starting from $250,000, while a higher end home starts from $300,000.

For a turnkey package, you can expect to pay an additional $18,000 to $22,000, depending on the style of your home. Another storey can add an extra $100,000 to $120,000 to your total build cost.

How much does it cost to build a 4 bedroom house in Australia?

The average cost to build a 4 bedroom house starts from $230,000 for a basic build, from $285,000 for a standard build, and from $350,000 for a premium build. A turnkey package is usually an additional $20,000 to $25,000 to the build home price.

Factors affecting the cost of building a new house

The cost to build a new home will depend on a range of different factors. This includes:

• The size of the home your building
• The construction type (timber frame, brick veneer, etc)
• The number of storeys
• Materials, finishes and accessories you choose
• Ease of access to the property
• Whether construction is on a slope
• The builder you choose
• If the home is a custom build project or volume-built.

For instance, a three-bedroom single-storey weatherboard home could cost between $1,440 and $1,993 per square metre, but the same home built with brick instead could cost between $1,528 and $2,116 per square metre. An additional storey on the home could add a further 5 to 10 per cent to the estimate.

When it comes to building a new home and the cost, you can expect 40 to 45% of the total cost to build to be reserved for materials alone. The cost of labour is usually 35 to 40% of the total amount, but you will also need to factor in taxes and charges, overheads, insurance and the builders profit margin of about 15 to 20%.

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COVID-19 and rising house building costs

Building a new home costs a lot of money, but since the pandemic these costs have been rising exponentially. Experts have said that the cost to build has risen faster than inflation. Builders face longer waits for materials to arrive and higher prices than when contracts were signed.

Due to the pandemic, a range of factors such as exchange rate volatility, supply chain issues and worker shortages have seen construction costs increasing and caused project timeline extensions.

Over recent months, timber prices have seen a 30 to 40 per cent rise, while reinforced steel has increased by 40 per cent in the last year. Plastic piping has also risen 26 per cent. All these price increases means that the average cost of building a house is about $76,000 more than a year ago.

Adding further pressure, government grants that were a lifeline for both builders and consumers at the start of the pandemic have now mostly come to an end. Make sure you speak with your builder to see how this might affect your build.

How long does it take to build a house?

Pre-pandemic, a new house build could be complete within as little as six months. In 2022, a new build that might have taken six to eight months, will likely take up to 12 to 18 months for completion. These delays are taking a heavy toll on both construction companies and homeowners.

How to choose a house builder and get quotes

Hiring a builder is an important task for your house building project. There are many builders to choose from but having a reputable and reliable builder makes a massive difference to your experience.

When searching for building quotes, make sure you ask a lot of questions. This will help you choose the right builder for your home. Remember to ask these questions:

• Are they licensed?
• Do they have public liability insurance and professional indemnity?
• Can they provide a list of references for you to check?
• Will they offer a written quote?
• Do they have experience with your type of project?
• How long will the house build take?
• When will they be available to start?

It’s best to have a good indication of the costs for materials and have your house plans ready before you seek quotes from local builders. Being prepared with the information they need will ensure you receive accurate quotes.

With Yellow Pages, you can compare multiple free quotes from top local builders. Once settled on your builder, it’s required by law to sign a contract in order to protect both parties.

Ensure your contract covers:

• The full scope of works
• Total contract price and costs of the project
• How long the build will take
• When payments are due, and
• The process for if there is a dispute.

Different contract types suit different personal circumstances. You will be able to opt for either a standard, cost plus or fixed/lump sum contract.

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*All costs and prices quoted were sourced at the time this building cost guide was written and should only be used as an estimate.