Building a new home is the biggest financial commitment most Australians will ever make, and understanding the cost per square metre is the fastest way to set a realistic budget. The national average new build cost per square metre in Australia sits between $1,800 and $3,500 for most residential projects, but that figure swings dramatically depending on whether you choose a project home or a custom design, where you build, and the quality of finishes you select. This guide breaks down every cost component so you can plan accurately before signing a building contract with a licensed builder.
How Much Does a New Build Cost Per Square Metre? The Short Answer
The total new build cost per square metre in Australia ranges from roughly $1,500 for a basic project home in a regional area to $5,000 or more for a premium custom home in a capital city. Here is how the three main budget tiers compare for a single-storey home.
| Budget Tier | Cost Per m² | Total for 200m² Home | What You Get |
|---|---|---|---|
| Budget (project home) | $1,500–$2,200 | $300,000–$440,000 | Volume builder design, standard inclusions, laminate benchtops, builder-grade carpet and tiles, single garage. Limited design changes. |
| Mid-range | $2,200–$3,200 | $440,000–$640,000 | Semi-custom or boutique builder design, stone benchtops, quality flooring, double garage, ducted air conditioning, upgraded fixtures and fittings. |
| Premium (custom/architect) | $3,200–$5,000+ | $640,000–$1,000,000+ | Architect-designed, high-end fixtures, engineered timber floors, custom cabinetry, integrated smart home systems, premium landscaping included. |
These figures represent construction cost only. Land, site works, council fees, and utility connections sit outside these ranges and can add 20 to 30 percent to your total spend.
Project Home vs Custom Build
Understanding the difference between these two approaches is essential because it drives the single biggest variation in construction cost.
Project homes are pre-designed floor plans built by volume builders such as Metricon, Henley, Simonds, and McDonald Jones. The builder purchases materials in bulk and uses standardised construction methods, keeping costs between $1,500 and $2,500 per square metre. You choose from a set menu of inclusions with limited structural changes. Most house and land packages in growth corridors use project home builders.
Custom builds involve an architect or building designer creating a one-off design for your block. The cost per square metre for a custom home starts around $2,800 and runs to $5,000 or beyond for high-end architectural projects. You pay a premium for design fees (typically 8 to 15 percent of build cost), bespoke detailing, and the fact that your builder cannot leverage bulk purchasing. Custom builds suit difficult blocks (steep, narrow, or irregular) and homeowners who want a home tailored to their lifestyle.
The cost gap. Project homes are typically 30 to 50 percent cheaper per square metre than custom designs. A 200-square-metre project home at $2,000/m² costs $400,000 to build. The same floor area as a custom build at $3,500/m² costs $700,000. That $300,000 difference buys significant design freedom, but most first-home buyers find project homes deliver excellent value.
New Build Cost Per Square Metre by State
Construction costs vary across Australia due to differences in labour rates, material availability, land conditions, and regulatory requirements. Sydney and Melbourne consistently sit 10 to 20 percent above the national average, while Adelaide and regional areas offer the best value.
| City / Region | Budget (Project) | Mid-Range | Premium (Custom) | Compared to National Average |
|---|---|---|---|---|
| Sydney | $2,100–$2,700 | $2,700–$3,800 | $3,800–$5,500+ | 15–20% higher |
| Melbourne | $1,900–$2,500 | $2,500–$3,500 | $3,500–$5,000+ | 10–15% higher |
| Brisbane | $1,700–$2,200 | $2,200–$3,000 | $3,000–$4,500 | Close to average |
| Perth | $1,700–$2,300 | $2,300–$3,200 | $3,200–$4,500 | 5–10% higher |
| Adelaide | $1,500–$2,000 | $2,000–$2,800 | $2,800–$4,000 | 5–10% lower |
| Hobart | $1,600–$2,100 | $2,100–$2,900 | $2,900–$4,200 | Close to average |
| Canberra | $1,900–$2,400 | $2,400–$3,300 | $3,300–$4,800 | 10–15% higher |
| Darwin | $2,000–$2,600 | $2,600–$3,400 | $3,400–$4,800 | 10–15% higher |
Sydney’s premium reflects the highest labour rates in the country ($55 to $75 per hour for labourers, $75 to $120 for licensed trades) and stringent council requirements, particularly in inner-city and heritage zones. Darwin’s elevated costs come from freight on materials (everything ships in from interstate) and a smaller pool of licensed builders. Adelaide and Hobart offer the most competitive pricing, with strong builder competition and lower overheads.
Itemised Cost Breakdown
Understanding where your money goes helps you evaluate builder quotes and negotiate upgrades. Here is a typical new build cost breakdown for a mid-range single-storey 200-square-metre home.
| Component | % of Build Cost | Cost Range (AUD) | Notes |
|---|---|---|---|
| Slab or foundations | 10–15% | $20,000–$50,000 | Concrete slab (most common). Stumps or piers for sloping sites cost 20–40% more. Waffle pod slabs standard in most states. |
| Frame and roof structure | 15–20% | $40,000–$80,000 | Timber or steel frame. Roof trusses, fascia, and guttering. Steel frame adds 10–15% but suits termite-prone areas. |
| External cladding and brickwork | 8–12% | $25,000–$60,000 | Brick veneer is standard. Rendered panel, weatherboard, or mixed cladding available. |
| Roofing | 5–8% | $15,000–$35,000 | Colorbond steel (most common and cost-effective) or concrete tiles. Hire a licensed roofer for specialist work. |
| Plumbing | 6–8% | $18,000–$40,000 | Rough-in and fit-off. Hot water system, bathroom fixtures, kitchen plumbing. Always use a licensed plumber. |
| Electrical | 6–8% | $18,000–$40,000 | Wiring, switchboard, power points, lighting, smoke alarms, and TV/data cabling. Your licensed electrician handles all connections. |
| Internal linings and plasterboard | 5–7% | $15,000–$30,000 | Plasterboard walls and ceilings, cornices, and plastering. |
| Cabinetry and joinery | 8–12% | $25,000–$55,000 | Kitchen, bathroom vanities, laundry, wardrobe fit-outs. Biggest variable by tier. |
| Flooring | 4–6% | $12,000–$30,000 | Carpet, tiles, vinyl plank, or engineered timber. A licensed tiler is needed for wet-area tiling. |
| Painting | 3–5% | $8,000–$20,000 | Interior and exterior. Three coats standard. Hire a licensed painter for quality results. |
| Windows and glazing | 4–6% | $12,000–$30,000 | Aluminium frames standard. Timber or thermally broken aluminium for premium builds. Double glazing now required in most climate zones under NCC 2025. |
| Fixtures and fittings | 3–5% | $8,000–$25,000 | Tapware, door handles, towel rails, showerheads, light fittings. Biggest lifestyle impact per dollar. |
| Air conditioning | 2–4% | $6,000–$18,000 | Ducted reverse cycle is the most popular choice for new builds. A licensed air conditioning technician installs and commissions the system. |
Total mid-range estimate (200m² single-storey): $440,000–$640,000 (excluding land, site works, and council fees)
Factors That Affect New Build Cost Per Square Metre
Every building project is different. These eight factors drive the biggest price variations.
1. Build Type: Project Home vs Custom
This is the single largest cost driver. Project homes from volume builders cost $1,500 to $2,500 per square metre. Custom architect-designed homes cost $2,800 to $5,000 or more. The 30 to 50 percent premium on custom builds reflects design fees, bespoke materials, and loss of bulk purchasing efficiencies.
2. Number of Storeys
A double-storey home costs 20 to 40 percent more per square metre than a single-storey home. Structural steel, scaffolding, crane hire, upper-floor plumbing, and working at height all add cost. However, a double-storey home uses less roof area and less slab per square metre of living space, so the total per-square-metre difference is less dramatic than it first appears.
3. Site Conditions
Flat, cleared blocks with good soil (Class A or S) are the cheapest to build on. Reactive clay soils (Class H, E, or P) require engineered slab designs that add $5,000 to $30,000 to foundation costs. Sloping blocks need cut-and-fill or pier foundations, adding 15 to 40 percent to the slab cost. Rock removal, high water tables, and bushfire-prone land (BAL ratings) all push the overall building cost higher.
4. Material Selections
The difference between standard and premium materials in a 200-square-metre home is $50,000 to $200,000. Laminate benchtops ($2,000) versus natural stone ($8,000 to $15,000), builder-grade carpet ($3,000) versus engineered timber flooring ($15,000 to $25,000), and basic tapware ($1,500) versus designer tapware ($5,000 to $10,000) are the biggest swing items.
5. Location
As shown in the regional comparison above, Sydney and Melbourne are 10 to 20 percent above the national average. Regional areas are typically 10 to 15 percent below capital city pricing for labour, but material freight costs partly offset this, particularly in remote locations.
6. Energy Efficiency and NCC Compliance
The National Construction Code (NCC) 2025 requires higher energy performance standards, including improved insulation, double glazing in many climate zones, and better thermal bridging solutions. Meeting NCC 2025 adds roughly $5,000 to $15,000 to the total construction cost compared to pre-2024 requirements, but delivers long-term savings on heating and cooling bills.
7. Inclusions vs Exclusions
Two builders quoting $2,200 per square metre may include vastly different items. One quote may include landscaping, driveways, and fencing while the other excludes them. Always compare quotes on a like-for-like basis by requesting a full inclusion list.
8. Timeframe and Market Conditions
Construction timelines currently run 8 to 14 months for project homes and 12 to 24 months for custom builds. Labour shortages and material supply disruptions have pushed costs up by 20 to 30 percent since 2020. Building during quieter periods (autumn and winter) may yield better pricing from builders seeking to fill their pipeline.
House and Land Packages
House and land packages combine a block of land with a project home build in a single contract or pair of contracts. They are the most popular path to home ownership for first-home buyers in growth corridors around Brisbane, Melbourne, Perth, and Adelaide.
Typical package prices (2025–2026):
- Adelaide: $340,000–$640,000
- Brisbane: $420,000–$750,000
- Perth: $400,000–$700,000
- Melbourne (outer suburbs): $480,000–$850,000
- Sydney (outer suburbs): $550,000–$950,000
Watch out for the gap. The advertised package price rarely includes everything you need to move in. Site costs ($10,000 to $70,000), utility connections ($5,000 to $15,000), landscaping ($10,000 to $30,000), driveway ($3,000 to $8,000), and fencing ($4,000 to $10,000) are commonly excluded. Budget an additional 20 to 30 percent above the advertised price for a realistic total.
Hidden Costs and Exclusions
Budget blowouts happen when unexpected or excluded costs surface during the build. Watch for these items that sit outside the standard building contract price.
Site costs. Soil testing ($1,500 to $3,000), site clearing ($2,000 to $10,000), retaining walls ($5,000 to $30,000 for sloping blocks), and engineered slab upgrades for reactive soils ($5,000 to $25,000). Site costs alone can add $10,000 to $70,000, with an average of $18,000 nationally.
Council fees and permits. Development application or complying development certificate ($3,000 to $15,000), BASIX certificate in NSW ($500 to $2,000), building permit ($1,500 to $5,000), and any required engineering or surveying reports ($2,000 to $5,000).
Utility connections. Sewer ($3,000 to $8,000), water ($2,000 to $5,000), electricity ($2,500 to $12,000), gas ($1,500 to $4,000), and telecommunications ($500 to $2,000). Costs increase significantly for blocks more than 20 metres from the street.
Provisional sum and prime cost items. Builders use provisional sums for work they cannot price accurately until the job starts (soil conditions, rock removal). Prime cost items cover fixtures you have not yet selected (tapware, tiles). Both commonly blow out if not actively managed.
Landscaping, driveways, and fencing. Rarely included in the per-square-metre build cost. Budget $15,000 to $50,000 for a finished exterior.
Tips to Save Money on a New Build
Reducing your new build cost per square metre does not mean accepting a poor-quality home. These strategies deliver genuine savings.
Go single storey. A single-storey home is 20 to 40 percent cheaper per square metre than a double-storey of the same floor area. If your block allows it, building out saves more than building up.
Choose a project home. Volume builders leverage bulk purchasing and standardised designs to deliver savings of 30 to 50 percent compared to custom builds. Many project home designs are now architecturally appealing and highly functional.
Build smaller, finish better. A well-finished 180-square-metre home often feels larger and lives better than a cheaply finished 250-square-metre home. Reducing floor area by 20 percent saves $80,000 to $120,000 at mid-range pricing.
Lock in a fixed-price contract. Fixed-price contracts protect you from cost escalation during the 8 to 14-month build. Ensure the contract clearly defines inclusions and uses realistic provisional sums.
Choose standard lot shapes. Irregular, narrow, or sloping blocks cost more to build on. A flat, rectangular block with Class A or S soil classification minimises foundation costs and keeps the per-square-metre cost predictable.
Time your build. Builders are busiest from September to February. Signing a contract in autumn for a winter start can secure better pricing and faster timelines.
State-Specific Considerations
Each Australian state has different licensing requirements, building codes, and processes for new home construction.
New South Wales. Licensed building contractor required (NSW Fair Trading). BASIX (Building Sustainability Index) certificate mandatory. Home building compensation fund (HBCF) insurance required for projects over $20,000. Verify your builder’s NSW licence.
Victoria. Registered domestic builder required (VBA). Domestic building insurance mandatory for work over $16,000. Energy efficiency requirements under 6-star rating system. Cladding restrictions following Grenfell-related reforms.
Queensland. QBCC licensed builder required. Home warranty insurance mandatory for projects over $3,300. Cyclone-rated construction required north of the Tropic of Capricorn. Check your builder on TradieVerify.
Western Australia. Registered building contractor required (DMIRS). Home indemnity insurance mandatory for work over $20,000. Construction in cyclone regions requires specific engineering. BAL (Bushfire Attack Level) ratings affect design and cost in many Perth-metro fringe areas.
South Australia. Building work contractor licence required (Consumer and Business Services). Professional indemnity and warranty insurance mandatory. Adelaide’s competitive builder market keeps pricing favourable.
Tasmania. Licensed builder required (Consumer, Building and Occupational Services). Building permits issued by local councils. Smaller market means fewer volume builder options but strong boutique builder quality.
ACT. Licensed builder required (Access Canberra). A/B/C/D licence classes determine the scope of work permitted. EER (Energy Efficiency Rating) of 6 stars minimum required for all new homes. Check your builder on TradieVerify.
Northern Territory. Licensed building contractor required (NT Building Practitioners Board). Cyclone-rated construction mandatory in Darwin and northern regions. Limited builder availability increases costs and timelines.
Frequently Asked Questions
How long does it take to build a new house in Australia?
A standard project home takes 8 to 14 months from slab pour to handover. Custom builds typically take 12 to 24 months. Two-storey homes add 2 to 4 months compared to single-storey designs. These timelines do not include the 4 to 12 weeks for council approvals before construction begins.
Is it cheaper to build or buy an existing home?
Building is usually 10 to 20 percent cheaper than buying an equivalent established home in the same suburb, particularly in growth corridors with house and land packages. However, building requires patience (12 months minimum) and the hidden costs of site preparation and connections can close the gap. In established inner-city suburbs, buying is almost always cheaper because land values are the dominant cost component.
What is included in the per-square-metre cost?
The per-square-metre figure typically covers the building structure itself: slab, frame, roof, cladding, internal linings, plumbing, electrical, cabinetry, flooring, painting, and standard fixtures. It usually excludes land, site works, council fees, utility connections, landscaping, driveways, fencing, and upgrade selections beyond the standard inclusion list.
How do I compare builder quotes accurately?
Request itemised quotes from at least three licensed builders and compare them line by line. Check that each quote includes the same scope: number of power points, type of air conditioning, tapware brand, flooring specification, and whether site costs are included or excluded. A quote that looks $30,000 cheaper may simply be excluding items the other builders have included.
What is the cheapest way to build a new home?
Choose a project home from a volume builder on a flat block with good soil classification. A single-storey, 3-bedroom home of 140 to 160 square metres with standard inclusions can be built for $250,000 to $350,000 (construction only) in Adelaide, Brisbane, or Perth. Minimise variations during the build, as changes after contract signing attract premium pricing.
Does a double-storey home cost more per square metre?
Yes. A double-storey home costs 20 to 40 percent more per square metre than a single-storey home due to structural requirements, scaffolding, upper-floor plumbing and electrical, and additional engineering. However, the total build cost for a double-storey home is often lower than a single-storey home of the same floor area because the slab and roof are smaller.
Related Guides
- How to Hire a Licensed Builder — Our builder hiring guide
- Australian Builder Licensing Explained — Our builder licensing guide
- Home Warranty Insurance — Our home warranty insurance guide
Sources
- BMT Tax Depreciation. Construction Cost Table 2026. bmtqs.com.au
- Housing Industry Association (HIA). New Home Sales Report 2025. hia.com.au
- Rawson Homes. Cost of Building in Sydney 2025. rawsonhomes.com.au
- Australian Bureau of Statistics. Building Approvals Australia. abs.gov.au
- Master Builders Australia. National Construction Industry Survey 2025. masterbuilders.com.au
- QBCC. Queensland Licensing Requirements. qbcc.qld.gov.au
- National Construction Code (NCC). 2025 Building Standards. ncc.abcb.gov.au
- CoreLogic. Residential Construction Cost Index 2025. corelogic.com.au