What’s the Cost of Building a Home in Australia?

Guest Post by Alex Chapman

Building a home in Australia is a dream for many people, allowing them to create their dream living space.

Some people may have other ambitions like selling their house for a profit later, but the one thing that most people are worried about is how much does building a house in Australia cost for the average person?

Building a home in Australia is an exciting project, and even though it gives you the chance to bring your dream home to life, many factors affect the cost of home building or construction.

There are affordable options for people who want to build a home on a budget in Australia.

You need to keep in mind that the larger the property is, the more expensive it will be to build, so if you want to save money, it’s best to stay small.

If you’re looking for an inexpensive option, you can build a three-bedroom house with 150 meters squared of floor space.

It has a dining room, a lounge, and a master bedroom, along with an entertaining area outside.

The total building cost of that home rounded off to $120,000. However, you need to account for the property’s associated costs. These include:

  • Site costs ($10,000 to $70,000) – average is around $20,000
  • BASIX ($10,000 for driveways and $10,000 for flooring)
  • Extra building costs ($40,000)

When you add in all the additional costs of building a home in Australia, you can expect to pay somewhere between $155,000 to $160,000.

Cost of Building a Home Per Square Meter

Homeowners and a home builder like Porter Davis discuss the cost of building a home in terms of dollars per square meter.

They calculate by taking the total build cost and divide it by the home’s total floor space.

It’s not an accurate depiction of the total cost of a home build project because a bathroom or kitchen’s cost per square foot will be higher than an empty room’s cost per square foot.

Therefore, your estimated calculations can be inaccurate if you’re building a larger bathroom or kitchen space in your home.

However, it is still an essential measurement, and we will share the average cost per square meter of different homes in Australia to give you an example:

    • Project Homes (basic) – $620 to $780/square meter
    • Project Home (Deluxe) – $1,000 to $3,000/square meter
    • Custom Built Homes – $1,500 to $3,000/square meter
    • Deluxe Custom Built Homes – $2,500 to $4,000/square meter

Having a basic understanding of the overall costs of building a home in Australia per square meter allows you to budget for the home build project properly.

Additional Costs to Consider for Building a Home in Australia

You must also account for the additional costs of building a home in Australia so that you’re not short of money during the build.

It’s tough to calculate the exact costs if you don’t know anything about your build or the land, but our guide will help you.

1. Quality of the Soil

All the estimations made above were based on the fact that you have M classification soil on your plot of land.

It’s the best soil classification. Your total costs can exceed thousands of dollars if the soil has boulders, stones, clay, etc., as it will require more work for the builder.

2. Slope of the Block

It’s ideal if your block is perfectly flat as that means you won’t have extra costs, but your estimate costs can exceed significantly if you have a sloping block.

For instance, a front-to-back slope may cost $6,000/meter, while a side-by-side slope will cost $9,000/meter.

You must also note that project builders don’t like building on blocks with a slope greater than 3 meters.

3. Testing the Contour and Soil

It’s a necessary test that may cost between $1,500 to $2,000 and will be done for testing the block’s contour and soil quality.

4. Areas Prone to Bushfires

If your property has a Bushfire Attack Level (BAL), there will be additional costs to protect your property from damage caused by bushfires.

5. Areas Prone to Flooding

Properties located in flood-prone areas will require measures to protect them during flooding, which will mean a rise in the extra costs of your home build project.

Additional Costs When Choosing a Home Builder Like Porter Davis

Most people prefer hiring a custom design and home builder like Porter Davis instead of building their project home themselves.

It could be due to necessity or wanting a professional design of a custom home.

However, you must note that additional costs will be associated when you hire professional home builders to construct your dream home.

These costs are as follows:

Home Design

You will have to pay for home designing, which means hiring an architect and isn’t cheap.


Building a project home in Australia will mean buying materials in bulk and working with cheap materials.

However, if you want a custom home build, it will have additional material costs.

Project Manager

Your home build will need to be managed, and a project manager must be hired for that.


Homebuilders and building companies make money by charging markups on labour.

You may have to pay higher labour costs if your home builder hires expensive subcontractors.


You must consider plumbing costs when building a home in Australia.

The costs will depend on your property’s size and the number of fixtures needing plumbing in the home.

You will need to contact a reputable plumber to estimate the total plumbing cost for your home.

They will assess your home’s building plans and give you an accurate quote for the plumbing costs of your home build.

Final Words

Building a home in Australia isn’t a decision you should take lightly because numerous things can go wrong, and several factors can increase your final bill.

It’s difficult to give you an exact figure for the costs of a new home build, but you need to have a budget before beginning the process.

Working with a home builder like Porter Davis can help you give you a precise estimate before starting the construction process.