When buying or building a new home, price per square foot is a key metric to assess overall costs. Understanding this figure is critical, especially for those looking to budget their dream home accurately.
In Australia, several factors influence the price per square foot of new homes, such as the cost of materials, location, labour, and customisation. Let’s explore the factors determining the price and the current trends in Australia.
Let’s get straight to the point.
The price per square foot of new homes in Australia varies significantly by region, influenced by factors like location, material quality, labour costs, and design complexity.
Sydney is the most expensive, with costs ranging from $185 to $300 per square foot, driven by high land and labour prices. Melbourne is slightly cheaper, averaging $170 to $250 per square foot.
Brisbane offers more affordable options at $150 to $220, while Perth is the most budget-friendly among major cities, with prices ranging from $130 to $200. Building in regional areas can further reduce costs.
Average Price Per Square Foot In Australia
While costs vary, here’s a general idea of the average price per square foot for new homes in Australia:
Standard Homes
According to Homestead Homes, the average cost to build a house in Australia is approximately $1,900 per square metre or roughly $176 per square foot.
This figure is for a standard home using average-quality materials and a simple design. It can fluctuate based on location, material choices, and customisations.
Luxury Homes
The price per square foot can increase significantly for more luxurious homes, which often use high-end materials and offer custom designs.
Residential Attitudes notes that luxury homes in premium areas can range from $2,500 to $4,000 per square metre or $232 to $371 per square foot. These homes are designed with bespoke finishes and exclusive features, increasing the overall cost.
Custom Vs. Standard Designs
Property Update points out custom-built homes can cost considerably more than project homes, where builders offer pre-designed layouts.
While custom homes allow you to tailor every aspect, this can push the price per square foot above the average range. Custom homes cost between $3,000 and $5,000 per square metre, which equates to $278 to $464 per square foot.
Regional Variations In Price Per Square Foot
Australia’s diverse geography and economy mean that the price per square foot of new homes can vary significantly by region. Costs are affected by factors such as local building regulations, land availability, labour market conditions, and proximity to urban centres.
Below, we’ll explore how different Australian states and cities experience varying building costs per square foot.
New South Wales (Sydney)
As Australia’s most populous and economically vibrant state, New South Wales, especially its capital, Sydney, has some of the highest construction costs.
In Sydney, the price per square foot can range from $185 to $300, with the upper end of the spectrum typically found in affluent suburbs or high-demand areas closer to the CBD. Several factors contribute to these higher costs:
- Land Prices: Sydney is notorious for its expensive real estate. Even before building begins, securing land in the city or its desirable suburbs often requires a hefty investment, especially in areas like the Eastern Suburbs or North Shore.
- Labour Costs: As one of Australia’s largest cities, Sydney faces high labour costs, particularly in inner-city regions. The availability of skilled workers and unionisation in the construction industry can drive up costs significantly.
- Material Transportation: The price of transporting building materials into Sydney, particularly for projects requiring high-end or imported materials, can also elevate the overall price per square foot.
- Zoning and Compliance: Due to stringent zoning laws and the need to adhere to specific building regulations, builders in Sydney often face additional costs related to approvals and certifications. This compliance increases costs, especially for bespoke or luxury homes in sought-after locations.
Victoria (Melbourne)
While still expensive, Melbourne generally offers more affordable building costs than Sydney.
The average price per square foot in Melbourne ranges from $170 to $250, with some variability based on the build type and specific location within the city.
- Suburb Differences: Prime areas such as Toorak or South Yarra can increase prices, particularly for custom homes or projects requiring unique architectural designs. Meanwhile, outer suburbs or areas further from the CBD can offer more affordable construction options.
- Growing Construction Industry: Melbourne’s robust construction industry is key to keeping costs more competitive than Sydney’s. With a growing number of developments and building projects in the city, competition among builders helps keep prices in check. Additionally, the city’s infrastructure allows for smoother logistics and supply chains, reducing the cost of material delivery.
- Design Choices: Like Sydney, opting for more elaborate designs or higher-end finishes in Melbourne will push the price per square foot to the higher end. However, those seeking to build standard homes in less-central suburbs may find costs more manageable.
Queensland (Brisbane)
Brisbane, the capital of Queensland, is generally more affordable than Sydney or Melbourne when it comes to construction.
The average price per square foot in Brisbane ranges from $150 to $220, making it a more accessible option for those looking to build new homes. Several factors contribute to these lower costs:
- Affordability of Land: Land in Brisbane is typically more affordable than land in Australia’s southern states. Even within the city, suburban and fringe areas such as Logan or Ipswich offer reasonable land prices, helping to reduce the overall cost per square foot for new builds.
- Lower Labour Costs: Brisbane experiences lower labour costs than the bigger cities in the south. This factor, combined with a growing workforce in the construction sector, helps to keep building costs manageable.
- Weather Impact: Brisbane’s subtropical climate means certain construction techniques and materials are optimised for warm, humid conditions. While this may not directly affect the price per square foot, it does mean that builders may rely on materials different from those in cooler climates, which can sometimes reduce costs.
- Regional Areas: Beyond Brisbane, Queensland’s regional areas offer even more affordable building costs. The price per square foot can drop further in areas like the Gold Coast, Sunshine Coast, or Cairns, especially for standard homes.
Western Australia (Perth)
Perth offers the most affordable building costs among Australia’s major cities. The average price per square foot in Perth ranges from $130 to $200, with even high-end projects remaining competitive compared to other cities.
- Land Availability: One reason Perth is affordable is the availability of land. Unlike the densely populated East Coast, Perth and its surrounding areas still have plenty of space for new developments. This abundance helps keep land prices down, reducing overall building costs.
- Lower Demand: Perth has experienced slower growth than Sydney or Melbourne, resulting in lower demand for construction services. As a result, builders in Perth tend to offer more competitive pricing, leading to lower overall costs for homeowners.
- Simpler Regulations: Building regulations in Perth are generally more straightforward, reducing the cost of compliance. This is particularly true for standard home builds, where approval processes can be quicker and less expensive than in cities with stricter planning laws.
- Regional and Remote Areas: Outside Perth, building costs can vary dramatically, particularly in more remote or rural areas of Western Australia. In towns like Bunbury or Albany, the price per square foot remains relatively low, but transportation of materials and access to skilled labour in remote areas can add to costs.
Factors Influencing The Price Per Square Foot
Several variables affect the price per square foot of a new home. These factors include the size of the house, the quality of materials, and the complexity of the design.
Understanding these elements can help you estimate your overall costs.
Size Of The Home
The larger the home, the more you’ll pay in absolute terms. However, the price per square foot can decrease slightly with a larger home, as certain fixed costs (such as permits and land preparation) are distributed across more square footage.
Smaller homes may have a higher price per square foot because these fixed costs are spread over a smaller area.
Location
One of the most significant factors is the location. Building in capital cities like Sydney, Melbourne, or Brisbane can dramatically increase costs due to higher land and labour prices.
Conversely, rural areas may offer cheaper construction rates, though transportation costs for materials could increase.
Quality Of Materials
Opting for high-quality materials like marble countertops, hardwood floors, or custom cabinetry will undoubtedly increase the price per square foot.
Lower-quality or standard materials will keep costs down but may offer different aesthetic appeal or durability.
Design Complexity
A simple, straightforward floor plan costs less than a complex, multi-storey design.
More intricate architectural designs, including homes with several angles, nooks, or unique features, tend to cost more per square foot.
Conclusion
The price per square foot of new homes in Australia is influenced by a wide range of factors, from the size of the home to the complexity of its design.
On average, you can expect to pay between $130 and $371 per square foot, depending on your location, the materials you choose, and whether you opt for a standard or custom design.
By making informed choices, such as selecting affordable materials and building in more cost-effective regions, you can bring down the overall cost of your new home while still achieving a high-quality finish.
Frequently Asked Questions About Home Sizes
How Many Square Feet Is Good For A House?
The ideal square footage is about 600 – 700 square feet per person. That means a family of three will want a house of at least 1,800 square feet, and a family of four will want a home of around 2,400 square feet.
How Do You Calculate 1 Square Foot?
Multiply the length by the width, and you’ll have the square feet. Here’s a basic formula you can follow: Length (in feet) x width (in feet) = area in sq. ft. Tip: If you can’t picture what a square foot is, try drawing a square that is 1 foot tall by 1 foot wide-you’ve got one square foot!
How Do You Calculate The Price Per Square Meter?
A square meter is a space with a one-meter length and one-meter width. We can calculate the price per square meter by dividing the overall price of a property by the sum of the square meters in the property.
Is 1500 Square Feet A Big House?
No, this size home is typically considered “midsize.” A 1,500-square-foot house plan is a great fit for small families or couples planning to start a family. How many bedrooms can a 1,500-square-foot house have?
Is Custom Build Cheaper?
A custom build is generally more expensive than a standard or pre-designed home. This is because custom builds allow for personalised designs, unique materials, and specialised construction, increasing costs. However, the final price depends on your choices; in some cases, careful planning can keep costs lower.