New home builders across Australia charge an average of $50 to $80 per hour, however, the cost to build a new home may vary depending on several factors.
The estimated cost to build a high standard full brick house may range between $1,720 to $2,830 per square metre.
This article gives an overview of the cost to build different types of houses from single units to two-storey townhouses per square metre and the labour cost charged by new home builders.
This guide will identify the factors that determine the cost to build a new home and highlight simple tips on how to save money when building a new house.
Cost of Labour for Building a New House
New home builders charge an average cost of $50 to $80 per hour. The labour cost to build a new home differs per state and prices may change depending on other factors.
The rates of professional home builders may also depend on their qualifications and experience. For high-quality service, hire licensed builders who are efficient in building a new home.
The labour cost to build a new house is the lowest in Queensland, South Australia, and Australian Capital Territory, followed by Victoria and New South Wales. Western Australian home builders charge a bit more.
Average Labour Cost
|States||Costs (per hour)|
|Australian Capital Territory||$50|
|New South Wales||$60|
Note: Clarify overheads and profits on top of the builder’s hourly rates.
Cost of Building a New House per Square Metre
The average cost to build a standard full brick house ranges between $1,720 to $2,830 per m², while a two-storey high standard townhouse will cost $1,645 to $2,635 per m².
The table below outlines data from Rawlinsons’ Australian Construction Handbook 2018, Edition 36. It shows estimated elemental costs of building a house per city across Australia.
|City||Single High Standard Full Brick House (per m²)||Two-Storey High Standard Town House (per m²)|
|Adelaide||$1,720 to $1,850||$1,645 to $1,775|
|Brisbane||$2,625 to $2,830||$1,910 to $2,060|
|Canberra||$2,280 to $2,455||$1,950 to $2,100|
|Darwin||$2,440 to $2,630||$2,180 to $2,350|
|Hobart||$2,435 to $2,625||$2,445 to $2,635|
|Melbourne||$2,260 to $2,435||$2,080 to $2,245|
|Perth||$2,425 to $2,615||$2,075 to $2,240|
|Sydney||$2,585 to $2,785||$2,195 to $2,365|
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Factors Affecting the Cost To Build a New Home
The cost to build a new home is influenced by the following factors:
1. Labour costs
The cost of labour varies per state. The difference in labour prices affects the costs of building a house.
Expect home builders across Western Australia to charge more for building a new home as compared to their fellow builders in Queensland, South Australia, and the Australian Capital Territory.
2. Cost of materials
Materials such as full brick, brick veneer, and timber frame, will have an impact on the total cost to build a new home. Building materials used in the construction of your home differ in prices.
3. Size of the home
More rooms will require more labour, more materials, and the use of specialised equipment, which means higher construction costs.
There will be an additional cost to build a multi-storey home as there are other items needed to build a larger home, including an additional floor system, stairs, suspended concrete slabs, and more.
4. Timeframe of completion
A two-storey house may take longer to finish than a simple bungalow home. The longer it takes for new home builders to complete your house, the more money you have to spend on labour.
5. Design of the home
The design is a determining factor in the overall cost to build a new home. A custom home that is built using high-quality materials will cost more than a simple home project.
Tips on How to Save Money When Building a New Home
The cost to build a new home can be costly, especially when you are planning to build a large custom home with a complex design.
To keep your overall house building prices less expensive, here are some helpful tips:
Tip#1 – Select a new home builder wisely
To avoid high construction costs, find a reliable and affordable home builder who can be trusted and will follow a promised timeline of completion.
Tip#2 – Opt for an open floor plan
One of the most efficient ways to cut the cost to build a new house is by choosing to have an open floor plan. Keep the design and construction of your home simple.
You can maximise an open floor plan without adding extra costs of building a house.
Tip#3 – Source your own materials
Minimise the cost to build a new home by sourcing your own building materials. By selecting and purchasing your own materials, you can have high-quality items at a better price or at a major discount.
Always consider your pros, cons, and long term benefits of increasing your budget for building a new home.
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