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May 18, 2022

How Much Is The Average Cost To Build A House In Australia?

As one of the safest countries in the world, Australia is a great place to live in. There are certain things you must consider if you wish to build your house in Australia. For example, the first mandatory question you will ask your building contractor is: ‘how much does it cost to build a house in Australia? For any building project, whether residential or commercial, monetary costs are the most vital element.

According to the latest data, the average cost of building a house in Australia in 2021 is $320000. However, this figure also depends on several factors and may vary from one state to another. This blog discusses how different factors impact Australia’s building costs and the average costs in every state and territory.

The Average House Construction Cost In Australia

In early 2021, the average cost reported by the ABS (Australian Bureau of Statistics) was $1393.55 per square metre. But, this figure did not include costs related to planning permits, site works, design, or any sudden increase in the costs. As per the Buildings Approvals data given by the ABS, the average dwelling in Australia covers 229.8 square metres. From this figure, we can calculate the total build portion cost to be $320238. This figure was $313800 in 2018.

According to the statistics by the Australian Bureau of Statistics, the average building cost in Australia has increased by 74% from 2003 to 2018.

On the other hand, according to leading architects, if someone wants to build an architecturally designed house, the minimum cost will start from $3000 per square metre. The maximum value can be $5382 per square metre, which equals $50000 per Australian house square. Relative to an architecturally designed house, the cost of a home constructed by a volume builder can be as low as $1600 per square metre.

Custom homes Perth are highly-priced because architects have to come up with unique designs for every site, client and requirement. Construction of architecturally designed homes combines technical and creative art, and so it takes time. The price is not related to the quality of materials used. However, some custom home builders indeed offer some flexible design ideas at much lower costs.

Read More: 7 Things To Consider When Designing A Modern Home In 2022

The Average Cost Of Building A Home In Every State

This section discusses the average building cost in each state and territory in Australia. All these figures are according to the latest data by ABS.

  • $349,000 in New South Wales
  • $327,000 in Victoria
  • $289,000 in Queensland
  • $275,000 in South Australia
  • $298,000 in Western Australia
  • $285,000 in Tasmania
  • $365,000 in Northern Territory
  • $440,000 in the Australian Capital Territory

What Are The Factors Impacting The Price Of Building A House In Australia?

Five key factors influence the cost of building a home.


If you wish to have a large house with more rooms, it will naturally require more materials. It means more specialised equipment and labour, which will increase your home building costs.

Quality of materials used

Whenever higher quality materials are used in constructing a home, it demands better craftsmanship and finishing. Another factor you should consider here is the condition of the land and the terrain.

Site considerations

According to many top bespoke home builders in the country, a crucial consideration is the various expenses related to the site. The main reason behind this consideration is that site costs involve much-limited control because of several site-specific requirements. Thus, even if you have to lower costs in certain areas, you cannot compromise the quality of the foundations.

The site’s location will also be an important factor to consider as it involves planning overlays and specific requirements of the local council.

Read More: 5 Reasons To Consider Full House Renovation Over Relocating!

Desired timeframe

Timeframes also affect the price and resources. For example, it will naturally cost you higher if it takes a considerably large amount of time.


Architects will always aim to use the most available space. To give a unique look, they may think of building more complex structures, increasing the cost. Whenever you make changes to the original designs, it leads to a significant budget blowout. Most companies provide their clients with plans that include standard inclusions. The costs will naturally rise if you want to have optional extras like swimming pools, custom fencing, landscaping, reverse-air cycle air-conditioning, carpentry Perth, and stone benchtops in your compound.

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How Does The Cost Of The Land Affect The Calculations Of The Total Building Cost?

While calculating the total building cost of your house in Australia, you have first to consider the price of the land. This figure also significantly varies from state to state.

As per the 2021 State of Land report of the Urban Development Institute of Australia, while the median lot price in Sydney was $49500 in 2020, that was $319000 and $183460 in Melbourne and Adelaide, respectively.

The average land cost in Sydney was $1285 per square metre, and that in Melbourne and Adelaide were $819 per square metre and $400 per square metre, respectively.

What Are The Effects Of The Recent Covid-19 Pandemic?

Because of the recent COVID-19 pandemic, the global economy suffered a lot. Australia is also not an exception. But the good thing is that Australia is one of the countries that has recovered from its economic downfall much faster.

It is not so easy to determine exactly how much impact was made by the COVID-19 pandemic on the house building costs. However, we can fairly say that changes like border restrictions and frequent border closures at the rise in COVID cases have changed the scenario.

Due to a reduction in productivity, the supply chain has been badly impacted. Many projects have taken longer to get completed. It means a rise in construction costs is no less inevitable.

Read, Also: Single Storey Vs. Double Storey: Which One Is Good For You?

Final words

The cost figures may seem discouraging, but you will be happy to know that building costs are much lower than house-buying costs. Another beneficial feature of building a new house is ordering the features and floor plans you want. Contact Boda Builders to clear any doubts about your home planning and construction.

Reviews What Customers Say About Us

Boda Builders provide the one-stop solution for your dream construction-related project. They renovated my house with the best interior. They have the best experience, I recommend them for all sorts of construction projects.


Great company that sticks to their commitment at the time of assigning the project. They have good knowledge and the best experience to hand over your construction projects. I assigned them to renovate my office but with my limited time and budget. They did a great job. You can trust their process and can completely rely on their decisions. They will not disappoint you with their work.


Boda builders are the best facility management service providers in the town. Being under stress and the burden of not maintaining premises security with limited manpower, they became my backbone and helped me completely in doing these activities. They are experts in helping you with all your facility management-related problems. They also helped me in managing the contractual tasks and daily inspections.

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