The average cost to build a house in Australia in 2025 ranges from $1,500 to $4,000 per square metre.
That means a typical 3-bedroom home (about 150 m²) might cost anywhere from $225,000 to $600,000, depending on location, design, and finishes.
Let’s answer the most common questions people ask about building costs in Australia, so you know exactly what to expect.
Why does the cost of building a house in Australia vary so much?
The price depends on several key factors:
- Location: Building in Sydney or Melbourne costs more than regional areas.
- Type of home: Custom builds and architect-designed homes cost more than project homes.
- Quality of finishes: Luxury kitchens, stone benchtops, and high-end fixtures increase costs.
- Site conditions: Sloping blocks, soil quality, and access can add to the budget.
- Size and design complexity: More floors, larger rooms, and unique features raise the cost.
For example, building in regional Queensland is often cheaper than in inner-city Melbourne because of lower labour and material costs.
How much does it cost to build per square metre in different states & cities?
Here’s a quick look at typical per m² costs across major cities (2025 figures):
| Location | Low Spec (from) | Mid Spec | High Spec (up to) |
| Sydney | $2,500 | $3,500–$4,000 | $4,500+ |
| Melbourne | $2,300 | $3,200–$3,800 | $4,500+ |
| Brisbane | $2,000 | $2,800–$3,500 | $4,000+ |
| Adelaide | $1,800 | $2,600–$3,200 | $3,800+ |
| Perth | $2,000 | $2,800–$3,500 | $4,000+ |
| Regional NSW / QLD | $1,500+ | $2,200–$3,000 | $3,500+ |
Tip: Working with local experts like builders Newcastle can help you get more accurate, fixed-price quotes in your area.
What about the cost of land in Australia?
Building costs are only half the story — you’ll also need to buy land.
- In major cities, small lots can cost $300,000–$800,000+.
- In outer suburbs or regional areas, land might cost $100,000–$300,000.
- Land price depends on location, size, and demand.
Before planning your build, research land prices in your chosen suburb — it can easily double your total budget.
What hidden costs should I expect when building a home in Australia?
Apart from the build itself, there are extra costs like:
- Site preparation and earthworks
- Council approvals and permit fees
- Utility connections (water, electricity, internet)
- Driveways, fencing, and landscaping
- Professional fees (architects, engineers, certifiers)
- Upgrades and variations during construction
Many people underestimate these costs, so it’s wise to budget an extra 10–20% as a buffer.
Where is it cheapest to build a house in Australia?
Generally, it’s cheaper in:
- Regional towns and rural areas
- Cities like Adelaide and Hobart, compared to Sydney or Melbourne
In 2025, average construction costs in Adelaide can be up to 20–25% lower than in Sydney.
When is the best time to build a house to save money?
The best time is usually when:
- Demand is lower (end of year or just after Christmas holidays)
- Interest rates are stable or dropping
- Builders are looking to fill gaps in their schedule
Planning well ahead and locking in quotes early can also protect you from sudden price rises.
Who can help estimate how much it will cost to build your house?
- Quantity surveyors: They give detailed cost estimates.
- Builders: Project home builders often provide fixed-price quotes.
- Architects: They can estimate based on design and materials.
For the most accurate figure, get quotes from at least three local builders.
What’s cheaper: buying an existing house or building a new one?
- Building: More control over design, energy efficiency, and fewer repairs at the start.
- Buying: Usually faster and sometimes cheaper, especially in built-up areas where land is expensive.
In some outer suburbs or regional areas, building can still be the better value.
FAQ
How long does it take to build a house in Australia?
Usually 6–12 months, depending on design complexity, weather, and builder schedules.
Do house prices include the cost of land?
No, the build price is just for construction. You’ll need to buy the land separately.
Can you build a house for under $300,000 in Australia?
Yes — if you choose a small project home, build in a regional area, and keep finishes basic.
How much deposit do you need to build a house?
Most lenders require 10–20% of the total land + construction cost.
What is a turnkey home?
A turnkey build is ready to move into, including floors, blinds, landscaping, and appliances — ideal if you want fewer surprise costs.