One of the most common questions Australians ask before they begin their building journey is, “How much does it cost to build a house?” Whether you’re a first home buyer, an upgrader, or an investor, understanding the financial outlay involved in building a new home is essential. The truth is, there’s no one-size-fits-all answer. The cost depends on several important variables, including your location, design choices, and the current market conditions. This guide aims to break down the key factors that influence the cost of building a house in Australia so you can budget with confidence.
Understanding the cost to build a house involves breaking down several important questions that affect the total budget. From the location and size of the home to the level of finish and environmental restrictions, each factor contributes significantly to the final cost. In this section, we cover the top five follow-up questions that people commonly ask after learning the average cost to build a home in Australia. These insights will help you make more informed decisions about your new home build.
1. Where is the House Being Built?
Location is a major factor when building a home in Australia. Construction costs can vary significantly depending on the region, city, or suburb you choose. Urban centres like Sydney and Melbourne generally have higher labour and permit costs, while regional and outer-suburban areas offer more affordable options and easier access to land.
2. What Size and Type of Home Are You Planning?
The size and type of your home greatly influence the overall cost. Single storey homes typically cost less than double storey homes or duplex designs. A larger floor plan means more materials, labour, and time to complete. Planning for a 3-bedroom new home will differ considerably from designing a custom-built double storey residence.
3. What Level of Finish or Inclusions Do You Want?
Your choice of finishes from flooring to cabinetry to appliances can significantly affect your budget. Basic inclusions help keep costs down, while premium selections for kitchen and bathroom fittings or luxury flooring will increase your build cost. Many home builders offer house and land packages with tiered inclusion levels to suit different budgets.
4. Is the Land Ready to Build On?
The condition of your land impacts build preparation costs. Sloping blocks, rocky soil, or the need to demolish existing structures will add expenses. Land that is flat, clear, and connected to essential services will reduce site costs and make it easier for builders to start the construction process quickly.
5. Are There Council or Environmental Restrictions?
Some blocks are located in zones with special council or environmental regulations. In bushfire or flood-prone areas, for example, additional building requirements can increase construction costs and approvals may take longer. It’s crucial to check local building regulations before starting your project.
Building Costs by State
Understanding the cost to build a house across Australia’s states is essential for setting realistic expectations and budgets. Each state has its own pricing trends, demand for land, and popular growth suburbs where new housing developments are booming. Here’s a snapshot of the average construction costs and key suburbs for new homes in each state.
New South Wales (NSW)
NSW remains the most expensive state for building new homes, particularly in Sydney. Construction costs here range from $2,300 to $4,200 per sqm. Growth corridors such as Marsden Park, Oran Park, and Leppington are popular due to ongoing land developments and infrastructure projects.
Victoria (VIC)
In Victoria, especially Melbourne, average build costs sit between $2,000 and $3,800 per sqm. Suburbs like Clyde North, Tarneit, and Mickleham attract home buyers thanks to their affordability and master-planned communities.
Queensland (QLD)
Queensland offers more cost-effective options with building costs ranging from $1,800 to $3,400 per sqm. Areas like Springfield, Ripley Valley, and Coomera are seeing an increase in new builds due to population growth and lifestyle appeal.
South Australia (SA)
South Australia is among the most affordable states for building, with costs starting from $1,700 per sqm. Popular new home locations include Mount Barker and Munno Para, where land and house packages are readily available.
Tasmania
Building in Tasmania has gained traction due to affordability and natural beauty. In Hobart, average costs are around $2,200 per sqm. Kingston and Sorell are emerging as desirable spots for constructing new homes.
Northern Territory (NT)
In the Northern Territory, average building costs range from $2,200 to $3,500 per sqm. Darwin suburbs such as Palmerston and Zuccoli are popular due to government building incentives and land availability.
Australian Capital Territory (ACT)
Canberra’s building costs typically fall between $2,500 and $3,800 per sqm. Suburbs like Gungahlin, Taylor, and Moncrieff are seeing rapid development, especially for families seeking house and land packages.
Western Australia (WA)
WA, particularly Perth, offers competitive build prices between $1,900 and $3,200 per sqm. Ellenbrook, Baldivis, and Piara Waters are key growth areas with a mix of single and double storey homes being built.
In recent years, there’s been a noticeable migration trend of Sydney residents relocating to more affordable states like Queensland. Driven by skyrocketing property prices in NSW, many Australians are looking north for better value, larger blocks, and a more relaxed lifestyle. Queensland suburbs such as Logan, Ipswich, and the Sunshine Coast have become popular destinations for these interstate movers, as they offer attractive house and land packages that are often significantly cheaper than similar properties in Sydney’s outer suburbs. This shift is also influencing local housing demand and contributing to construction growth in regional hubs.
Top 5 Quality & Affordable Home Builders in Australia
Choosing the right home builder is one of the most important decisions in your construction journey. Reputable builders not only offer high-quality workmanship but also help guide you through the entire process from choosing designs and securing approvals to managing inclusions and handover. Here are five highly regarded home builders known for their affordability and consistency across Australia.
1. Metricon Homes
Metricon is one of Australia’s largest and most trusted home builders. They offer modern designs, excellent value, and flexible house and land packages across the country.
2. Simonds Homes
Simonds is known for affordability and personalisation. Their wide range of single storey homes makes them a top pick for first-time buyers and growing families.
3. Coral Homes
Operating mainly in QLD and NSW, Coral Homes provides stylish and affordable home options with transparent pricing and generous inclusions.
4. G.J. Gardner Homes
G.J. Gardner offers fully customisable designs including duplex builds, appealing to buyers seeking unique layouts and site-specific solutions.
5. Burbank Homes
Burbank combines quality construction with affordability, making them a preferred builder in VIC, SA, and QLD. Their display homes showcase excellent use of space and inclusions.
Building a home in Australia in 2025 involves careful consideration of many factors location, design, finishes, and land condition. Whether you choose single storey homes, double storey homes, or a custom duplex, working with reputable home builders and considering flexible house and land packages can help control your budget and bring your dream to life. With costs continuing to rise, planning early and engaging professionals can ensure you get the best value for your new home.
