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 $5,300+ 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 $492,410. However, this figure can fluctuate widely based on factors such as location, house size, and the chosen quality of finishes.

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 $5,300, or more, per square metre.

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.

Cost to build a house per m2 by Australian city

The table below outlines typical house building costs per square metre across major Australian cities. 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 $3,100 per m2.

Note: Cost ranges are based on Q4 2025 data from Rider Levett Bucknall and may vary depending on design, materials, and site conditions.

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Average new home build costs by Australian state

Before planning your build, it’s useful to see the average total cost of constructing a new home across Australia’s states. According to ABS building approvals data from August 2025, the national average new home build cost was approximately $492,410 (up more than $22,500 compared to the previous financial year). These figures exclude land purchase, siteworks, and landscaping.

These costs vary significantly depending on your location, the size and type of home, and the materials chosen. NSW and Victoria have the highest average build costs, while South Australia remains the most affordable. Year-on-year increases are driven by rising material prices, labour shortages, and regulatory compliance.

Average Total Home Cost by State (Including Land, 2026)

• New South Wales (NSW): $1,233,600
• Victoria (VIC): $890,300
• Queensland (QLD): $915,700
• South Australia (SA): $815,500
• Western Australia (WA): $863,900
• Australian Capital Territory (ACT): $951,800
• Northern Territory (NT): $531,100

Note: These figures include both land and construction costs, providing a realistic guide to total expenditure when buying and building a new home.

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What affects the cost of building a new house?

The total cost of constructing a new home depends on several factors. Key considerations include:

• Home size: Larger floor plans require more materials and labour, naturally increasing costs.
• Construction type: Choosing between timber frame, brick veneer, or other structural systems impacts pricing.
• Number of storeys: Adding a second level generally increases the cost by 5–10% due to extra materials and engineering requirements.
• Materials and finishes: Premium fixtures, custom cabinetry, and high-end finishes can significantly raise costs.
• Site conditions: Sloping blocks, poor soil, or limited access can increase excavation and preparation expenses.
• Builder selection: Costs vary between large-scale volume builders and smaller custom home builders.

Example per-square-metre costs (approximate):

• Single-storey, three-bedroom weatherboard home: $1,300 – $2,500/m²
• Same home in brick veneer: $1,900 – $3,000/m²

Typical cost breakdown:

• Materials: 40–45% of total cost
• Labour: 35–40%
• Other expenses (taxes, insurance, overheads, builder profit margin): 15–20%

Site costs to consider

Your land can influence your total build cost as much as the design itself. Each site is unique, so allow for:

• Soil testing and classification: Determines foundation requirements ($1,500–$3,000)
• Excavation and retaining walls: Especially on sloped or uneven blocks ($10,000–$50,000+)
• Site preparation: Tree removal, demolition, or clearing vegetation
• Service connections: Water, sewer, electricity, gas, and NBN access (typically $5,000–$20,000)
• Difficult access: Narrow streets or tight blocks may require specialised equipment, adding extra labour and machinery costs

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Construction cost trends in 2026

Building a new home in Australia remains costly in 2026, though the extreme price surges of recent years have eased. Industry forecasts indicate costs will continue to rise, but at a more moderate pace of 4–6% across most cities.

Key factors affecting costs this year include:

• Labour shortages: Skilled trades remain limited, driving up wage rates.
• Materials: Prices for timber, concrete, and energy-intensive products remain higher than pre-pandemic levels, though they’ve stabilised compared to 2021–2023.
• Supply pressures: Global and domestic supply chain issues continue to impact availability and pricing.

Despite these pressures, cost increases are now more predictable, helping builders and homeowners plan more effectively. Strategic budgeting and careful planning remain essential for navigating the 2026 building market.

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How long does it take to build a house in 2026?

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 2026, most new homes are expected to take between 9 and 14 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?

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Preparing for builder quotes and contracts

Before requesting quotes, it’s important to have your plans finalised and a clear idea of your materials and finishes. The more detail you can provide upfront, the more accurate and comparable your quotes will be.

When gathering quotes, aim to compare several builders to understand market rates and inclusions. Once you’ve chosen a builder, a written contract is required to formalise the agreement and protect both parties.

What your contract should include

• Scope of work: A clear outline of what’s included in the build
• Total cost: The agreed price, including allowances and exclusions
• Timeline: Estimated start and completion dates
• Payment schedule: When payments are due throughout the build
• Dispute resolution: How any issues will be handled

Common contract types

• Fixed-price (lump sum): A set total cost for the project
• Cost-plus: Actual costs plus the builder’s margin
• Hybrid/standard: A combination of fixed and variable pricing

Choosing the right contract and understanding exactly what’s included helps avoid unexpected costs and keeps your project on track from start to finish.

Check out builders in Sydney, Melbourne, Brisbane, Perth or Adelaide to compare quotes.

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

Frequently Asked Questions: Cost To Build a House