Blog How much it costs to build a home in 2021

How much it costs to build a home in 2021

09 March 2021
How much it costs to build a home in 2021

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If you’re thinking about building your own home, you’ll need to know what it’s going to cost.

Unless you have an unlimited budget, a key element underpinning most of your construction decisions will revolve around the cost. Of course, we all want to build an affordable home without skimping on the quality - but your budget will determine whether you can afford custom finishes like marble benchtops, real timber floorboards and soft close drawers, or whether you’ll have to make do with quartz countertops and vinyl flooring.

There are a number of different factors that impact the cost of building a house, including:

  • Land (land that slopes will cost more to build on)

  • Location - each state and territory has its own regulations and different amounts of taxes, insurance, fees, etc

  • Materials used

  • Builder/architect

  • Size of house

  • Number of floors

According to the Housing Industry Association, the average house size in Australia is 243 sqm and the estimated price of building a house is under $300,000, or an average of $1,183 per sqm (excluding design, planning and permit costs).

If you want an architecturally-designed home, you’ll have to fork out around $2,152 per sqm.

This is how much it will cost to build a house in a capital city according to data from Rider’s Digest 2020 Brisbane, Australia Edition:

Capital city

Cost range per floor area ($/m 2) - Low

Cost range per floor area ($/m2) - High

Sydney

$1,780

$5,100

Melbourne

$1,720

$3,300

Brisbane

$1,800

$4,000

Adelaide

$1,580

$3,450

Perth

$1,400

$2,700

Canberra

$1,700

$3,400

Darwin

$1,800

$2,800

If you’re ready to make your home construction dreams a reality, you’ll need a construction loan. Construction loans are drawn down as the builder completes each stage of the home.

Check out some of our construction loans, or book an appointment with one of our friendly lending specialists to find out your borrowing power

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