How much to build a house?

How much does it cost to build a house in Australia? The cost of building a house varies depending on location, materials, and design. On average, construction costs range between $1,900 and $5,000 per square metre, though high-end builds can exceed this.

The Australian Bureau of Statistics reports that the average cost to build a new home in Australia is approximately $473,000. However, this figure can fluctuate widely based on factors such as location, house size, and the chosen quality of finishes. Costs typically range from $347,200 to $1,463,200, depending on the specifics of the project. 

In this guide to house building costs, we explore:

• Cost to build a house per m2
• What factors affect the cost to build a house
• How long it takes to build a house
• Getting house building quotes, and more.

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

How much is it to build a house? Building costs per m2 in Australia currently range between $1,900 and $5,000, or more, per square metre.

According to Q4 2024 data from Rider Levett Bucknall, the cost to build a house in Sydney is at the higher end of the scale, with estimates of up to $7,600 per m2, while Adelaide, Darwin and Perth offer more affordable new house build prices. Perth house build prices start from $2,450 per m2.

Here’s the cost to build a house in various Australian cities:

The cost to build a new home will be much higher for an architecturally designed home than a basic build that starts from $1,900 per square metre. For a high-end home, you can expect costs ranging from $5,500 to over $7,600 per square metre.

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

The cost of building a 3-bedroom house in Australia varies widely based on factors such as location, design, and material choices. In regional areas, prices start at around $250,000, while in major cities, costs can exceed $900,000.

On a per-square-metre basis, standard home builds range from $1,872 to $2,976 per m², whereas architecturally designed homes can cost up to $5,382 per m². The final price depends on factors such as land preparation, construction complexity, and the level of finishes selected.

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

The cost of building a 4-bedroom house in Australia depends on factors such as location, design, and material quality—similar to a 3-bedroom home. However, since 4-bedroom houses are generally larger and may include extra features, they tend to be more expensive to build.

As a general guide, construction costs range from $2,628 to $3,926 per square metre. This means a smaller, more basic 4-bedroom home could start at around $260,000, while a larger, high-end home could exceed $1 million. Additional costs may apply for site preparation, custom architectural elements, and premium finishes.

What affects the cost of building a new house?

The cost of building a new home can vary significantly based on several key factors, including:

• Home size – Larger homes require more materials and labour, increasing costs.
• Construction type – The choice between timber frame, brick veneer, or other materials affects pricing.
• Number of storeys – Adding an extra level typically increases costs by 5–10%.
• Materials and finishes – High-end finishes, fixtures, and custom features can raise costs considerably.
• Site conditions – Sloping blocks or difficult site access can require additional excavation and preparation.
• Builder selection – Prices vary between custom home builders and large-scale volume builders.

For example, a single-storey, three-bedroom weatherboard home may cost $1,872 to $2,591 per square metre, whereas the same home built with brick could range from $2,072 to $2,878 per square metre.

In terms of cost breakdown, materials typically make up 40–45% of the total cost, while labour accounts for 35–40%. Additional expenses include taxes, insurance, overheads, and a builder’s profit margin of around 15–20%.

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Rising construction costs in 2025

Building a new home is a significant investment, and construction costs continue to be a key concern for homeowners. While the extreme price surges of recent years have eased, inflation, interest rates, and ongoing supply chain pressures are keeping costs elevated.

Key factors influencing the market in 2025 include persistent inflation, fluctuating material costs, and skilled labour shortages. While some materials like timber and steel have stabilised, others remain volatile due to global economic uncertainty and high demand.

Building costs are expected to rise between 4.5% and 6% across most cities in 2025, though at a more moderate pace than previous years. The good news is that cost increases are expected to be more predictable, offering builders better planning opportunities. However, strategic budgeting remains essential for navigating the evolving market conditions.

Impact of new building code changes on construction costs

New national building standards, introduced to improve energy efficiency and accessibility, have increased construction costs. The Master Builders Association estimated these changes added around $30,000 to the price of an average home.

Queensland implemented the updates on October 1, 2023, with other states, including New South Wales and Victoria, following on May 1, 2024. While these regulations aimed to enhance sustainability and livability, they also contributed to rising building expenses amid existing cost pressures.

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How long does it take to build a house in 2025?

The timeline for building a new home has extended in recent years due to ongoing market pressures. While a standard build once took around six to eight months, in 2025, most new homes are expected to take between 9 and 12 months to complete.

The actual construction timeline depends on several factors, including the size and complexity of the home, availability of materials, labour shortages, weather conditions, and local market demand. While some delays have eased, builders and homeowners should still plan for potential scheduling challenges to ensure a smooth construction process.

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How to choose a house builder

Selecting the right builder is crucial to ensuring a smooth home-building experience. With many options available, choosing a reputable and experienced professional can make all the difference.

Still wondering about the cost of building a house? When comparing quotes, ask key questions to ensure you find the best fit for your project:

• Are they licensed?
• Do they have public liability and professional indemnity insurance?
• Can they provide references?
• Will they offer a detailed written quote?
• Do they have experience with similar projects?
• How long will the build take?
• When can they start?

Preparing for builder quotes and contracts

Before requesting quotes from local builders, it’s important to have your house plans finalised and a clear understanding of material costs. Being well-prepared ensures you receive accurate and detailed quotes that reflect your project’s true expenses.

Getting Quotes

Platforms like Yellow Pages allow you to compare multiple free quotes from local builders. When you’ve selected a builder, you’ll need to sign a contract, as required by law, to protect both parties.

What Your Contract Should Cover:

• Scope of work – A detailed breakdown of the project.
• Total cost – The agreed contract price, including all expenses.
• Timeline – Estimated duration of the build.
• Payment schedule – When and how payments are made.
• Dispute resolution – The process for handling disagreements.

Choosing the Right Contract Type

Builders offer different contract types depending on your budget and project needs:

• Fixed/lump sum contract – A set price for the entire project.
• Cost-plus contract – You pay for materials and labour plus a builder’s margin.
• Standard contract – A mix of fixed and variable pricing elements.

Selecting the right contract ensures transparency and helps prevent unexpected costs during the construction process.

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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.