“How much does it cost to build a new house?” seems like a simple question, but with a wide range of variables, it’s far from an easy answer.

In 2021, the average price to build a home in Australia is $320,000, but a more accurate number will depend on factors like the size of your home, your location, the design, and extra finishes to name just a few.

To help you budget your next exciting construction project, we’ve rounded up every fact, figure and feature you’ll need to look out for. Let’s get budgeting!

How Much Does Home Building Cost In Perth

How Much Does Home Building Cost In Perth

Building a new home is an exciting step in your life, and it’s easy to get swept up thinking about your bathroom fixtures, where to pop the BBQ on your new deck, or how close the local coffee shop is.

But the biggest mistake new home builders make is to underestimate their build costs.

Saving up or taking out a loan leaves you with a lump sum to work with, but there are a range of costs related to a new home build that fall outside of the actual build. From fees to site surveys, consultants to optional finishes, building a new home is more like dozens of smaller transactions rolled into one.

To muddy the waters more, data from the Australian Bureau of Statistics shows close to half (44.3%) of homes cost more to build than they were approved for.

To help you budget effectively, this article will outline the factors that impact your new home’s cost, provide estimates on cost per m2, and offer simple tips to help you build your dream home without running into a budget nightmare.

Will you be building a custom home or a project home?

The cost of your home will, in large part, come down to your choice of project home or custom home.

The higher price of custom homes is generally due to their standing as being unique, as no two custom homes are ever the same. In contrast, a project home typically costs less because you’ll be choosing a standard plan from a brochure that helps keep the costs of extra materials and design choices down.

Use the table below to compare the advantages and disadvantages of each home type to decide what’s right for you.

Project Home Custom Home
Limited Design Options You control the design
Standard packages w/optional upgrades Customised to suit your needs
Typically cheaper Typically more expensive
May have multiple clients at once Client-focused

Has COVID-19 affected the price of a new home?

It’s tough to estimate whether COVID-19 will change the price of building a new home in Perth, or anywhere in Australia.

However, ongoing border closures (both domestically and internationally) may make it harder to import materials, and with potentially disrupted supply chains and volatile exchange rates, construction projects may take longer – which will add to your overall costs.

Home building costs per square metre

Once you’ve decided whether you’ll be building a custom home or going with a project builder, it’s helpful to know the average costs per metre squared (even if there are some limitations to these figures, which we’ll explain below).

The average cost of building a new home per square metre falls on a spectrum with a range of influencing factors affecting your price. The average cost of building a home is $1,393.55 per m2 – but this figure doesn’t cover design, permits, site preparation, or unexpected budget blow-outs.

As a rough guide, use the chart below for average costs per square metre for average brick projects when planning your next home building project. Keep in mind, knowing the cost per metre squared doesn’t tell the whole story.

It’s not much help to meet with your local bank and ask for “$2,000 per square metre”. So while the figures below will provide a ballpark for a basic 150m2 to 170m2 home, a custom home will typically cost more as you add unique features and your own ideas.

State Single Full Brick Home (Per m2) Two-Story Full Brick Home (Per m2)
WA $2,425 to $2,615 $2,075 to $2,240
NSW $2,585 to $2,785 $2,195 to $2,365
VIC $2,260 to $2,435 $2,080 to $2,245
SA $1,720 to $1,850 $1,645 to $1,775
QLD $2,625 to $2,830 $1,910 to $2,060
TAS $2,435 to $2,625 $2,445 to $2,635

PORTRAIT CUSTOM HOMES TIP: Be careful of budgeting based on cost per square metre (which is calculated by dividing the total cost of the build by the total floorspace of the home) as bathrooms and kitchens can cost more per square metre than other rooms.

Outside of the figures above, here are the average cost per square metres for different types of homes:

  • Basic Project Home: $620 to $780 per m2
  • Deluxe Project Home: $1,000 to $3,000 per m2
  • Basic Custom Built Home: $1,500 to $3,000 per m2
  • Deluxe Custom Built Home: $2,500 to $,4000 per m2

Don’t forget to factor in these possible construction costs

Service Estimated Cost
Soil and Contour Tests $1,400 to $2,000
Site Preparation $10,000 to $40,000
Concrete Driveway $65 to $85/metre
OH&S and Council Requirements $5,000
Landscaping $5,000

What factors affect the price of a new-home build?

Building a home can be an extremely complex process. Between the size and style of your home, not to mention the materials and the block you’re working with, landing on a ballpark figure is difficult.

Even a standard brick home without custom finishes can result in a range of quotes. With so many variables at play, it helps to know what factors affect the price of your new home build.

Cost of site preparation

Before you start adding up the cost of construction, you’ll need to factor in expenses related to preparing your land for construction.

Keep in mind, these site prep costs will typically be absorbed into your build price, rather than be added as additional expenses. Some of the most common site costs to watch out for include:

  • Site surveys
  • Soil tests
  • Site clearance
  • Fencing
  • Retaining walls
  • Service connections

Site cost pricing: Site costs for an average sized block of land can be between $15,000 to $25,000, though the size and topography of your block can impact this figure.

Cost of site topography

What type of land are you building on?

Sloping blocks can add to your cost, and it’s not uncommon to see a construction project on a sloping block deliver a 30% increase in overall costs. This is because steeper sites typically need extensive excavation and filling to level the soil safely.

Outside of topography, the quality and type of soil will impact the price of your new home. This could be hitting rock during excavation, or running into clay or silt soil that isn’t known for providing a sturdy foundation. In both cases, you’ll need an experienced builder with more advanced skills to safely get your house standing.

Cost of materials

Naturally, different building materials used in your new home build will come with their own price points. For example, you could opt for full brick, brick veneer, or a timber frame – and each choice will affect your quote.

Or, why not consider lightweight cladding as an equally beautiful option, but one that will help bring your costs down?

We’re not suggesting one material is better than another (as the right choice for you will come down to taste, budget and environmental factors), but these myriad choices do show how each choice of construction material will raise or lower your costs.

Outside of big ticket resources, you’ll also have control over seemingly endless choices inside your home, from fixtures to doorknobs and cabinets, that can impact your price. You’ll be able to go through the budget, line-by-line, with your contractor to make sure you’re on the same page. This is crucial because your building company will have relationships to source materials, or you can request that you be in charge of sourcing certain materials.

Cost of specs

Finally, you’ll need to account for the cost of your home’s specifications, or specs. These are broken into three categories, including:

  • Structural (the size and quality of materials needed to build your home)
  • Systems (e.g. heating, cooling, ventilation, security, home technology, etc.)
  • Finishes (e.g. cabinetry, appliances, plumbing, lighting fixtures, etc.)

As these three categories show, it’s next to impossible to find an “average” price for a new home in Western Australia, New South Wales, or anywhere in between.

Even if you find your estimated cost per metre squared, your number of finishes, or the complexity of your systems can significantly impact your overall costs.

Feeling overwhelmed? We get it. Building a home is exciting, but that doesn’t mean it’s not without obstacles. Thankfully, we’ve rounded up some simple cost-cutting tips to help you keep more money in your pocket.

Tips to save money on a new home construction project

No one considers building a new home to be cheap, but that doesn’t mean you can’t find ways to reduce your cost without cutting corners on quality.

Here are a few of our recommendations to help you slash unnecessary costs along your home building journey.

Compare multiple home builders

You can help skip high construction costs by comparing home builders and finding a company with a clear plan, timeline, budget breakdown and history of building stunning homes on budget.

Aim to source between 3 and 5 quotes from local construction companies to ensure you get a range of insights and opinions. At Portrait Custom Homes we understand the choice of home builder is one you can never rush, which is why we offer FREE site visits to learn more about your land, your goals, and your vision.

Click here to schedule your FREE site visit and get a competitive quote on your next single, double, multi, or custom build.

Build to the block

Every block of land in Australia will come with its own challenges and obstacles. You can help lower your cost of a new home build by working with those features, not against them. For example, incorporating a large wrap-around deck to accomodate for sloping land, or keeping mature trees instead of starting your landscaping from scratch.

Be smart with design

The size and style of your home will have a major impact on your build cost, so help reduce your overall expenditure by keeping the perimeter of the home as rectangular as you can. This allows you to be flexible with the rooms inside, but limits the costs associated with numerous angle changes and indentations.

PORTRAIT CUSTOM HOMES TIP: You can also save by choosing a simpler roof shape. As an example, complicated hip-and-valley roofs will cost more than a standard roof pitch between 15 to 22.5 degrees.

Looking to build a Perth home that’s the envy of your street?

At Custom Homes Perth we’ve got over 20 years of experience creating unique, stunning homes that stand out and turn heads.

We understand the hard work that’s required to build a bespoke home, and offer a customer-first service that’s tailored to your needs, lifestyle and budget.

We’re committed to a service that’s honest and transparent, with no hidden costs or surprise charges along the way. And with a hands-on process from project design through completion, you’ll always be heard and understood until it’s time to hand over the keys.

Although putting a dollar figure on a custom new home is challenging, we’re excited to learn about your goals and offer a competitive quote to help you continue your research and find the Perth custom home builder who’s right for you.

Contact us today to discuss your building plans and budget or to organise your FREE site visit