How Much Per Square Metre Does it Cost to Build a House?

How Much Per Square Metre Does It Cost To Build A House?

Building a dream house is a big and important decision that anyone makes in their life. And if you’re planning to build a house, you must be aware of the cost. You have to set a realistic budget for constructing the house in Australia.

Thinking about the cost involved in constructing a house? Then this cost guide is for you. In this, we will help you better understand the cost of building a house in Australia and the factors that affect it.

Costs per Square Metre for Different Home Types

By taking into consideration some important factors that might have an impact on the final price of the house construction, you can determine the building cost per square metre of a house. The estimated expenses per square metre for various types of homes are compiled as follows:

• 3 Bedroom Weatherboard House (Budget Materials): $1,300 per square metre


• 3 Bedroom Full Brick Single-Level Project Home (Mid-Range Materials): $1,900 per square metre


• 4 Bedroom Brick Veneer Single-Level Project Home (Mid-Range Finishes): $2,400 per square metre


• Architect-Designed 4 Bedroom Full Brick, Two-Level Home (Top-Quality Finishes): $3,900+ per square metre

These figures provided above are just rough estimates that can vary depending on numerous factors, such as the material’s quality, regional differences, and design complexity.

Factors Affecting the Cost of Building a House

When building a house per square metre, costs are based on certain factors. Here, we will discuss those factors below.

• Size and complexity of the house: The size and complexity of a house significantly affect the cost of building per square metre. If you want to build a larger and more complex design with multiple storeys, it will cost more because it requires more labour and materials per square metre.



• Materials and finishes: If you choose high-quality materials for your house and want it to be durable, the overall cost per square metre will be influenced by the market prices of building materials such as steel, concrete, timber, etc. These costs can vary depending on market conditions.



• Location: Labour and material costs can impact construction costs because there may be regional variations. If you want to build a house in an urban area, labour and material costs are often higher compared to rural areas due to factors such as career opportunities, job availability, and access to healthcare facilities in urban settings.



• Availability of the resources: If the resources are unavailable in your locality, then you have to bring them from areas where they are available, and ultimately, it will result in a higher cost. That’s why the cost of constructing a home is affected by the availability of skilled builders, building materials, and construction equipment in your locality (where you want to build your home).



• Condition of the site: The condition of the site (such as accessibility, terrain, and soil quality) can have a big impact on the cost of building a home.

How Much Building A New Home Will Cost

You can consider the information below to determine how much building a new home will cost:

• The building costs typically include materials such as building materials, flooring, tiles, fittings, and fixtures, which usually makeup 40–45% of the total cost.
• Labour costs, which include construction workers, architects, engineers, and consultants, typically make up 35–40% of the overall budget when building a house.
• Additional expenses to consider include taxes, insurance, and overheads that contribute to the final house building cost.
• The profit margin of a builder is typically between 15-20% of the overall project cost, which impacts the final cost to build a new home.
• It's recommended to include a 10% contingency for unforeseen costs, helping to adjust your spending if needed during building a house.
• Depending on the level of involvement, you should allocate between 8% and 15% of the budget for architect costs if you require architectural services for the design of your new home.
• Obtaining the necessary permits and approvals is a critical part of building a home and can vary widely in cost and time, so be sure to factor in these potential costs when planning your budget.
• The average cost to build a 3 bedroom house varies depending on the location and complexity of the build. The same applies to the price to build a 4 bedroom house or cost to build a 2 story house.
• When assessing the cost per square metre, the average m2 of a house can range greatly depending on the design, materials, and location.
• In addition, the average house size m2 can affect the final price, as larger homes typically cost more to build. On average, the cost of construction will be calculated based on square metre rates that fluctuate due to various factors, including the building costs per m2 in your area.
• It's also helpful to know that building house prices can vary from $1,000 to $3,500+ per square metre depending on the quality of materials, location, and the complexity of your design.

How Long Does It Take to Build a Home?

• The average time for renovations has increased from 4 months to 6–8 months.


• New buildings now take 12–18 months to finish, compared to 6–8 months in earlier times.


• These two factors—cash flow and housing expenditures—put additional pressure on consumers and builders.


• Certain things can cause delays, such as soil conditions, severe weather, and permit issues.


• Nowadays, it takes roughly 8–12 months on average to build a two-storey house in Australia.

Cost-Saving Tips for Home Building

• You can choose a simple and functional design to avoid complex architectural elements.


• Get quotes from multiple builders and suppliers to find the best price. Don’t forget to negotiate with them.


• When choosing a builder, prioritize transparency with clear communication, detailed cost breakdowns, and realistic timelines to ensure a smooth process.


• You can collaborate with your builder to find cost-effective alternatives for materials.


• You can save on labour costs by completing certain tasks yourself.


• You should invest in energy-efficient features like insulation and solar panels.


• You can also save money by reusing materials from demolitions or using recycled materials in construction.

Conclusion

When building a house in Australia, you should prioritize cost-effective design choices and seek multiple quotes from builders. You can save by negotiating prices, completing tasks yourself, and investing in energy-efficient features. Collaborating closely with your builder and reusing materials can also help manage expenses effectively.