The Average Cost of Building a House in Australia

If you’re wondering, what is the average cost to build a house?—you’re not alone. With property prices fluctuating and buyer demand shifting, the idea of building a new home instead of buying an existing home is becoming increasingly appealing.

But here’s the truth: there’s no single price tag for building. The cost to build a house in Australia depends on many factors—from location and land to house design, building materials, and the level of customisation involved.

At SJD Homes, we believe in transparency, value, and helping clients build smarter. That’s why we’ve created this detailed guide—so you can make informed decisions, set a realistic budget, and avoid surprises on your journey to a dream home.

Key Factors That Influence Building Costs

To understand the overall cost of building a home in Australia, you need to look beyond surface-level estimates. There are key factors that shape the final outcome.

Location and Land

Where you build plays a significant role. The average cost of land varies significantly depending on region. Inner-city suburbs generally carry higher land costs, while areas across Victoria—particularly in the south-east—may offer more affordable options without compromising on lifestyle.

Additionally, the condition of the land impacts site preparation and construction costs. Sloped sites, unstable soil, or difficult access can all increase your overall price.

House Design and Size

The size and complexity of your home layout greatly affect your building costs. A basic home with a single-storey footprint will be more cost-effective to build than a multi-level home with intricate architectural features.

The larger the floor plan, the more square metre coverage—meaning more materials, more labour, and a higher final cost.

Materials and Finishes

The materials and finishes you choose play a major role in defining the style, quality, and comfort of your home. Premium inclusions and high-end finishes can elevate your home’s overall look and feel, while more budget-conscious selections still offer great performance and value. With expert guidance, it’s possible to strike the right balance between quality and budget—without compromising on the vision for your new home.

SJD Homes works with trusted trades, reputable suppliers, and high-quality materials to bring your vision to life. From classic finishes to the latest trends, we offer a wide range of styles and flexible upgrade options, so you can create a home that’s uniquely yours, without compromising on quality.

What’s Included (and What’s Not)

A common misunderstanding in the building process is assuming that everything is included in the initial quote. It’s essential to have a clear understanding of what’s part of the base build, and what’s considered an upgrade or addition.

For example:

• Driveways, landscaping, and fencing are often additional to the base construction
• Site costs can change depending on soil reports and council requirements
• Items like air conditioning, premium light fixtures, and security systems may also be optional depending on your contract

At SJD Homes, we’re committed to helping you clearly understand exactly what’s included in your home. We pride ourselves on transparency and will guide you through every detail, so there are no surprises, just confidence in your new home journey.

Why Building New with SJD Homes Makes Financial Sense

There’s a common belief that custom builds are only for luxury budgets. That’s simply not true.

SJD Homes delivers affordable custom solutions that allow you to personalise your build without blowing out your budget. Compared to buying an existing home—which often comes with renovation expenses, outdated electrical systems, and unforeseen repair costs—building new can actually offer better value in the long run.

Plus, new builds mean:

• Energy-efficient homes with modern insulation and ventilation
• Warranties on structural components
• No hidden damage, bad smells, or surprises left behind by previous owners
• The ability to save on long-term maintenance and utilities

When you compare prices, factor in both construction costs and the long-term impact of lower running costs, fewer repairs, and no major upgrades needed post-purchase.

How to Plan Your Build Budget Like a Pro

Budgeting for a new home doesn’t have to be overwhelming. Here’s how SJD Homes helps you stay on track from the first conversation to final handover.

Set a Realistic Budget

Include everything—land, planning, the building process, and extras like landscaping. Leave room for contingencies. Our team helps you define your expenses so you’re not caught off guard.

Choose Smart Designs

We offer a wide range of functional layouts that make the most of every square metre. By avoiding overly complex structures, you can reduce labour, materials, and construction time.

Ask the Right Questions

We guide you through inclusions and help you understand the full range of optional upgrades. You’ll never be surprised by “add-on” fees later in the construction process.

Work With Transparent Builders

Not all builders are created equal. SJD Homes offers consistent communication, no hidden costs, and a supportive team ready to walk you through the process step-by-step.

Why SJD Homes?

We’ve spent over 30 years helping families across South-East Victoria build homes that last.

Here’s why clients trust us:

• We’re known for quality, sustainability, and exceptional customer service
• We specialise in knockdown rebuilds, house & land packages, and custom homes
• We offer display homes in major growth areas so you can see exactly what you’re getting
• We believe building should be exciting—not confusing or overwhelming
• Our clients appreciate our ability to deliver personalised builds at a competitive price

SJD Homes makes custom building accessible. We deliver value without compromise and never treat you like a number.

Build with Confidence, Not Guesswork

Understanding the cost to build a house in Australia requires research, planning, and the right builder at your side.

The good news? You don’t need to do it alone.

If you’re ready to explore building your new home with a builder who prioritises transparency, affordability, and results—start your journey with SJD Homes today.Visit one of our display homes or contact our team to discuss your vision. We’ll help you turn your block of land into a place you’re proud to call home—on time, on budget, and built to last.