How much, on average, does it cost to build a house in 2025?

The cost of building a new house in Australia has surged over the past few years as supply and trade shortages continue to weigh on the market.

And at the same time, the construction industry has seen a raft of insolvencies as rising labour costs, extreme weather, high material costs and shortages and global supply chain issues forced many builders to close their doors.

And that means that surviving builders are placing hefty margins on new contracts to ensure they remain solvent.

So how much can you expect to spend when building a house in Australia today?

The answer to this could be summed up with that frustrating yet often accurate phrase:

How long is a piece of string?

There are a number of different factors that can affect the cost of building a house, including but not limited to:

1. The size of the dwelling - especially the number of bedrooms. In fact smaller homes can cost more per square metre to build, even if they have a lower overall cost
2. The complexity of the design
3. The location and the slope of the land
4. The quality of the materials used and the fixtures and fittings
5. Any construction delays

But with this in mind, there are some “ballpark figures” I can come up with, to give you a guide as to how much it may cost you to build a property.

But it’s worth keeping in mind that, when building a new home, the final cost of construction can differ vastly from the expectations set out at the building approval stage, and even at the start of construction.

Why?

There are numerous reasons for cost variation prior to and during construction - for example, costs and contracts may be finalised after council approval is sought or there may be unexpected delays and complications during construction.

To guestimate the cost of building a new home, consider the following:

• 40-45% of costs of the total cost to build is the cost of materials
• 35-40% of the total cost is labour
• There are many taxes and charges, insurance, and overheads
• And the builder would like to make a profit margin of around 15-20%

Why have building costs skyrocketed?

It all started a few years ago with COVID-related restrictions.

Thanks to volatile exchange rates, supply chains being impacted, and reduced productivity due to COVID-19 restrictions, floods and rains, costs have risen and the time to complete projects has dragged out pushing up the cost of construction.

Then there are the supply chain issues around the world due to the Russian-Ukraine war and things are getting worse.

The shortage of materials and labour is likely to significantly increase housing construction costs over the next couple of years.

Currently, the rate of increase in building costs is slowing and the supply chain is stabilising, but the critical shortage of skilled labour, compounded by the collapse of a number of building companies, is still keeping costs elevated.

Let's a look at how building costs have changed around Australia...

The latest CoreLogic - Cordell Construction Cost Index

National

The Cordell Construction Cost Index (CCCI) shows the growth in construction costs has risen 0.5% over the June quarter, after the three months to March (0.4%) recorded the lowest quarterly increase since March 2010 (also 0.4%).

The 12 months ending June 2025 saw the annual change in construction costs increase by 2.9%, up from 2.6% over the 12 months to June 2024.

The annual change in home building costs has been tracking at or below the pre-COVID decade average of 4.0% since the September quarter of 2023.

Cotality’s Research Director, Tim Lawless, commented:

“Growth in residential construction costs has increased a little compared to the previous quarter; however, when compared to the long-term average, the increase is tracking at half the pre-pandemic decade average of 1.0%.

That being said, the reacceleration is likely to weigh on inflation outcomes with the cost of new dwellings comprising the largest weight in the CPI calculation.”

He pointed to the annual rate of growth (ending June 2025), which saw construction costs increase by 2.9%, up from 2.6% over the 12 months to June 2024.

Source: Cotality

The Cordell costings team notes that costs have increased more compared to the relatively flat profile in the previous quarter, however when compared to long term average, the increase for this quarter remains low.

How much does it cost to build a house in Sydney?

Across NSW, the CCCI rose 0.5% over the June quarter, up slightly from the 0.4% rise seen over the March quarter and in line with the national growth rate.

This is the second lowest quarterly increase New South Wales has seen since March 2016 and is 40 basis points lower than the pre-COVID decade average of 0.9%.

Annually, NSW saw construction costs up 2.9% over the 12 months to June 2025 compared to a 3.1% rise over the 12 months to June 2024.

Source: Cotality

Cotality’s home value index showed dwelling values were up 1.1% over the three months to June across both Sydney and regional NSW.

As of June 2025, Sydney's median house value was $1,496,985, while the median unit value was $863,257.

Across regional NSW, the median house value was $802,895, while the median unit value was $637,733.

How much does it cost to build a house in Melbourne?

Victoria saw a 0.6% increase in construction costs over the three months to June, up from the 0.3% rise seen over the three months to March.

The Victorian CCCI increased by 2.7% over the year to June 2025, down from 3.0% over the 12 months to June 2024.

According to Cotality’s latest home value index, Melbourne dwelling values were up 1.1% over the June quarter, while Regional Vic saw dwelling values up 1.4% over the same period.

Melbourne's median house value came in at $947,611 in June, while the city's median unit value was $617,395.

Across regional Vic, the median house and unit value was $617,770 and $419,345, respectively.

Source: Cotality

How much does it cost to build a house in Brisbane?

At 0.4%, Queensland recorded the lowest quarterly rise in construction costs across the states, down from 0.6% over the previous quarter.

This is below the national growth rate of 0.5% and the lowest quarterly increase since the three months to June 2024 (0.3%).

Queensland's construction costs rose 3.4% over the year to June 2025, up from 1.9% over the 12 months to June 2024.

Source: Cotality

The Cotality Home Value Index saw dwelling values increase by 2.0% over the three months to June across both Brisbane and regional Qld.

As at June 2025, Brisbane's median house value was $1,010,566, while the median unit value was $718,196.

Across regional Qld, the median house value was $740,201, while the median unit value was $717,188.

How much does it cost to build a house in Perth?

In Western Australia, the latest CCCI showed a further 0.7% rise in construction costs over the June 2025 quarter, following a 0.5% rise over the three months to March.

WA's latest result is 20 basis points higher than the national quarterly increase (0.5%).

Annually, Western Australia's CCCI increased by 3.2% over the year to June, up from 2.0% over the 12 months to June 2024.

Source: Cotality

Cotality figures show Perth dwelling values were up 2.1% over the three months to June, while regional WA dwelling values increased by 2.7%.

As at June 2025, Perth’s median house value was $855,395, while the median unit value was $611,755.

Across regional WA, the median house value was $598,309, while the median unit value was $376,469.

How much does it cost to build a house in Adelaide?

South Australia saw the CCCI rise by 0.5% over the June quarter, following a 0.3% increase over the previous quarter.

The increase in construction costs across South Australia is in line with the national quarterly increase.

South Australia's 2.6% rise in construction costs over the year to June was up from a 2.3% rise over the 12 months to June last year.

Cotality figures show Adelaide dwelling values were up 1.1% over the June quarter, while regional SA dwelling values increased by 3.3% over the same period.

Adelaide’s median house value came in at $888,869 in June, while the city’s median unit value was $606,995.

Across regional SA, the median house and unit value was $503,052 and $332,429, respectively.

New code changes pushed up building costs even more

All residential construction must adhere to comprehensive building codes and standards governed by local and state laws which were introduced in 2023 and 2024 .

These updated home building codes were designed to ensure more liveable housing and energy efficiency but drove up the price of an average home by a further $30,000, according to the Master Builders Association.

Queensland MBA chief executive Paul Bidwell said the increases come on the back of a sharp increase in the cost to build a new home in the past three years.

“We have supported inclusive, sustainable and affordable housing and been in discussions with government and stakeholders for years – however, in the face of a housing crisis and rising costs, do not believe now is the right time to introduce these changes.”

Average house building costs in Australia

 

BMT Quantity Surveyors' latest report shows the average cost to build a house per square metre of new single and double-storey dwellings throughout Australia in 2024.

The costs in the table below are for Sydney, but you can still use them as a guide by applying one of the following regional variation percentages.

This will give you an approximate cost for the construction type per square metre in your area.

• Cairns - 110% - 130%
• Brisbane - 95% - 115%
• Sydney - 100% - 100%
• Canberra - 92% - 120%
• Melbourne - 95% - 105%
• Hobart - 95% - 120%
• Adelaide - 95% - 108%
• Perth - 98% - 120%
• Darwin - 110% - 135%

Average costs to build a house

Construction type	Level of finish
	Low	Medium	High
3BR weatherboard project home	$1,921	$2,150	$2260
3BR brick veneer project home	$2,047	$2,280	$2,723
3BR full brick project home	$2,127	$2,363	$2,954
4BR weatherboard home	$2,697	$2,882	$3,597
4BR brick veneer home	$2,866	$3,001	$3,777
4BR full brick home	$3,205	$3,662	$4,035
3BR brick veneer project home	$2,134	$2,359	$2,909
3BR full brick project home	$2,214	$2,490	$3,054
4BR brick veneer home	$2,909	$3,288	$3,816
4BR full brick home	$3,215	$3,691	$4,030
Architecturally designed executive residence	$4,267	$5,462	$7,641

Source: BMT Quantity Surveyors

Average costs to build a townhouse

Construction type	Level of finish
	Low	Medium	High
2BR single-level brick veneer townhouse	$3,011	$3,425	$3,858
2BR 2-level brick veneer townhouse	$3,091	$3,482	$4,047
3BR single-level brick veneer townhouse	$2,982	$3,396	$3,815
3BR 2-level brick veneer townhouse	$3,063	$3,568	$4,062

Source: BMT Quantity Surveyors

Average costs to build units

Construction type	Level of finish
	Low	Medium	High
3-level walk-up unit complex	$3,169	$3,402	$4,128
3-level walk-up unit complex	$3,106	$3,338	$4,062
4-8 level unit complex	$3,621	$3,896	$4,719
4-8 level unit complex	$3,541	$3,815	$4,641
8 or more level unit complex	$3,757	$4,264	$5,422

Source: BMT Quantity Surveyors

Average industrial construction costs

Construction type	Level of finish
	Low	Medium	High
High Bay Warehouse, standard configuration, concrete floor, metal clad	$1,555	$1,756	$1,893
High Bay Warehouse, standard configuration, concrete floor, pre-cast concrete wall clad	$1,909	$2,018	$2,249

Source: BMT Quantity Surveyors

Average hotel construction costs

Construction type	Level of finish
	Low	Medium	High
Single-level boutique motel including A/C, guest facilities	$5,025	$5,749	$7,558
Single-level tavern/hotel including A/C, excluding loose item fit-out	$4,192	$4,989	$6,003

Source: BMT Quantity Surveyors

Average office construction costs

Construction type	Level of finish
	Low	Medium	High
1-4 level open plan offices	$3,266	$3,641	$4,278
4-8 level open plan offices, including A/C & lifts, excluding fit-out	$3,785	$4,062	$5,461
8 levels and over	$5,416	$5,719	$5,981

Source: BMT Quantity Surveyors

Average retail construction costs

Construction type	Level of finish
	Low	Medium	High
Shopping mall	$4,079	$4,252	$4,758
Supermarket	$2,583	$2,758	$3,091

Source: BMT Quantity Surveyors

The average cost to build a house by state

But average building costs per square metre by cities is just one factor to take into account when working out home building costs.

Because the answer is more complicated than it might seem.

That’s because the location, size, and cost of the block it’s built on and the finishes all affect how much it costs to build a house.

So the cost of building a house in Melbourne would be vastly different from the cost of building a house in Brisbane, or even the cost of building a house in Adelaide, Perth, or Sydney.

To give a rough idea, quantity surveyors RLB has also produced a recent report on the price of a home-build per square metre based on different states, which identifies Brisbane as the most expensive city for home building, with the price ranging from $2,500 to $4,500.

Sydney has a lower start price but a higher range, from $2,100 to $6,400, with Melbourne a more modest $2,000 to $4,300.

City	Cost per square metre
	Low	High
Adelaide	$1,740	$3,800
Brisbane	$2,500	$4,500
Canberra	$1,840	$3,650
Darwin	$1,900	$2,950
Melbourne	$2,000	$4,300
Perth	$2,200	$4,100
Sydney	$2,100	$6,400
Gold Coast	$1,600	$4,400

Source: Rider Levett Bucknall

Average costs to build a new house by the number of bedrooms

So now we have a vague idea of how much it costs to build a house in Australia depending on the cost per metre square, location, size of the block, and even the fittings.

But what about the size?

It’s all well and good to get a ‘per square metre’ indication of price – but how do you translate that into actual costs, to give you an understanding of how much you’re going to pay to construct your new home or investment property?

There’s no point in going to the bank and saying, “I need to borrow $1,190 per square metre”.

They’re going to need a little more info to go on than that!

Builders and architects often use a per square metre (m2) figure to cost a project so this is a good baseline to work from, according to a page cost guide.

The average cost to build a 3-bedroom house

To build a 3-bedroom house you can expect to pay in the region of:

• $1,300 per square metre for a 3-bedroom weatherboard house on a level block, using budget materials
• $1,600 – $1,900 per square metre for a 3 bedroom full brick single level project home, on a level block, using mid-range to high-end materials and finishes

The average cost to build a 4-bedroom house

To build a 4-bedroom house you can expect to pay in the region of:

• $1,900 per square metre for a 4 bedroom single level, brick veneer home on a level block, using budget materials
• $2,400 per square metre for a 4 bedroom brick veneer single-level project home on a level block using mid-range finishes
• $2,900 per square metre for a 4 bedroom full brick two-level home on a level block using top-quality finishes
• $3,900+ per square metre for an architect-designed 4 bedroom full brick, two-level home on a level block using top-quality finishes

The average cost to build a 5-bedroom house or second-story

To build a 5-bedroom house you can expect to pay upwards of $4,300 per square metre.

If you want to know how much a second-story extension costs, expect to be charged anywhere from $1,850 to $3,300 per square metre, depending on the quality and price of the construction materials and inclusions.

So how much can you expect to pay?

First up, the figures I’ve detailed above are just a rough guide, as building costs can vary significantly based on your location, the project design, and the level of the fit-out.

And remember, a builder’s advertised base price is generally only a starting point and does not reflect how much your home will actually cost when it’s 100% completed.

This is because these “starting from” prices usually only include the basics.

If you are looking for a complete price that includes everything from the carpeting through to the landscaping and driveways as well as the white picket fence at the front, then you need to shop around for what’s known as a “turn-key” package – which means all you need to do at the end is turn the key and step inside.

And then there is the added recalculation needed depending on where the property is located, its size, and the quality of finishes.

It’s not as simple as getting one price quote - the cost of building a house varies widely depending on where and what you’re planning to build.

And this is even more so the case in today’s market where the cost of materials is consistently and steadily increasing, almost by the day.

Thanks to Australia’s rising inflation, almost every category of building materials has become more expensive.

And then the cost of an architecturally designed home to one built by a volume builder would differ again.

The hidden costs of building a house

As mentioned earlier, there are a number of costs that come into play when building a house.

For a standard brick home without any custom finishes, you may be able to come up with a fairly clear budget.

However, once you start factoring in extras such as landscaping, driveways, retaining walls, fences, upgrades, finishes, and fittings, your costs can increase significantly.

We already know that the breakdown of the costs to build a house would differ depending on the size of the property, location, and finishes, but what about the hidden costs of building a house?

Here are a few costs you might have overlooked.

1. Site costs

These are the expenses that are incurred to prepare your block of land before construction can even commence.

These are usually completed by your builder and in most cases, the site costs are charged on top of the build price.

Some of the typical expenses involved in a site cost can be:

• Connections to services such as water, sewer, electricity, and gas
• Fences
• Retaining walls
• Site clearance (trees, roots, bushes)
• Site survey
• Soil tests

2. Other factors that can affect the build price

Once you have signed a contract with a builder and decided on the layout and design of your property, they will make plans and prepare documents, before arranging a ‘pre-start meeting’.

The pre-start meeting is at the stage at which your house plans are finalised.

They are approved by the council and you are ready to make your final choices in regards to all of the design aspects, such as wall colours, the types of light fittings, and the materials used on the roof and on floors.

The ‘prime costs’ are generally already in place by the builder, however, keep in mind that in base contract packages, the prices factored in often account for the cheapest materials, the most basic fittings, and the most standard fixtures.

If you wish to change any of these, you could incur an extra cost.

Some of the parts of the home that you may wish to ‘upgrade’ during this process include:

• Roof: Depending on the materials you choose for your roofs, such as tiles or colorbond, this can vary widely
• Tiling: An allowance for a tiling amount per sqm will be made, but this can change depending on the quality and size of your final choice.
• Fixtures and fittings: Fancy, nonstandard taps, and European appliances will obviously cost more than standard Australian-made fixtures and fittings. Additionally, labour costs may increase if you select items that are more complicated to install. Inclusions such as fully ducted air conditioning can cost up to $10,000 (more for a two-storey home).
• Kitchen: If you’ve ever shopped for a kitchen benchtop, you know how widely the costs of a kitchen upgrade can vary. Again, the final price will depend on the quality of the item you choose and what is in your initial specification in the contract.
• Electrical: If you decide to change your lighting layout from what has been initially drawn, this can add costs. For example, if the specifications in your contract allow for one standard light per room but you wish to have multiple downlights, this extra cost can add up.

3. Extra costs you should allow for

Some extra costs you need to take into account and which could end up costing you a significant amount of money include:

• Soil quality: One of the first things your engineers will organise is a soil test. They do this by drilling some boreholes and the best classification you can get is M classification soil. If your soil is more difficult to work with eg. Clay, Sand or Rock then you’re likely to have to pay extra.
• The slope of the block: The easiest site to build on is a flat block. If your block slopes you’re likely to have to pay extra for more foundations or to cut and fill the site (make it flat) and possibly for retaining walls.
• Flood-prone areas: some sites require the house to be raised with the floor level above natural ground level to cope with excessive rain or floods and this can add to the construction cost.

Learning the lingo

When you go through the process of building a home, you’ll come across plenty of industry jargon that can be tricky to understand – and even trickier to price.

Here are a couple of terms that may be included in your building contract, which are important to understand:

Provisional sums

A provisional sum is an estimated amount of money that is determined by the builder, according to how much they believe the relevant job or material will cost.

• Also read:How much, on average, does it cost to build a house in 2025?
• Also read:Does building a granny flat make good investment sense?
• Also read:Hidden Costs of Building a House in Australia
• Also read:Spare a thought for NIMBYs

Often the builder can’t put a fixed cost on certain parts of the job at the time of providing a quote or signing the building contract because of unknowns.

For example, while your site may look flat and the builder quotes as such when starting the works, they may discover large clumps of rock that need to be removed and levelled prior to the slab being laid.

Or when the builder starts digging your foundations they realise they have to dig down further to hit firm footings, which will eventually require more concrete to be poured.

At times like this, you’ll need to pay an additional sum on top of the initial contract price, as the allowance that had been provided has been exceeded.

Prime costs

A prime cost is an item that is subject to change during the construction of your home.

These include things like fixtures and fittings such as tiles, doors, and taps, as these items may change depending on your final choice.

You’ll find an estimated amount is provided when signing the building contract and then depending on your specification of the finishes during the build, these prime cost items may cost more or less if you elect to change them along the way.

How long does it take to build a home in 2025?

It’s not just prices that have shot up since the COVID-19 pandemic began, the time to complete construction has also blown out.

A renovation that would have previously taken 4 months is now taking 6-8 months, and a new build that would have been 6-8 months is taking more like 12-18 months.

That’s really putting additional pressure on both builders who need the cash flow and the consumers who might be paying rent on one home while the building takes place for another, or who have two mortgages.

Unfortunately, a number of building companies have folded, having signed fixed-price contracts earlier in the pandemic and not being able to complete their contracts.

The problem is that when it comes to the question of ‘how long', there are just too many variables.

And currently, there are ongoing construction delays associated with COVID-19, only adding to the time taken to build a house.

Then, there are the unforeseen hurdles that always seem to arise when building - things like unfavourable soil conditions such as rock removal, bad weather (of which there has been a lot this year, particularly in NSW and QLD), or waiting for certain permits or approvals.

Having said all of that, the average time to build a two-storey house is currently roughly 8-12 months.

And there may be more price hikes to come yet.

The average cost of building a house varies due to a range of factors, including size, location, and quality of fixtures and fittings.

While I’ve tried to give you estimates, the final price will depend on whether you chose a display home that the builder has designed with cost efficiency in mind, or a unique home- your own special castle which has never been built before.