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

March 12, 2024

When considering building a house in Sydney, it's necessary to keep an eye on the cost per square metre.

Factors that fluctuate costs are:

  • Building materials,
  • Design complexity,
  • Location,
  • Builders' rates,
  • Quality finishing,
  • Size challenges (size, levels, etc.), and,
  • Customisations (pools/landscaping).

Normally, a house costs $2,000-$5,000 per square metre to be built in Sydney.

Be mindful that these are just estimates.

Actual costs will rise and fall depending on your building needs.

So, for an estimate tailored to your needs, it's best to converse with reputable builders or architects who can give you a detailed and accurate quote.

Sydney's average building costs per square metre

The cost per square metre for building a single-storey house with basic finishes is $2,000-$3,000.

Higher design upgrades or upscale finishes unlike selling "as is" without an allowance for the finishes could raise that to $5,000 or even more per square metre.

Always make a mental note that this is an estimate, and the real expenses are subject to your project's specific needs.

Sydney average building cost per bedroom

In Sydney the average cost of building a house depends on how many bedrooms it holds.

The following is a general breakdown of the cost per square metre based on different bedroom counts:

1 – 1 - 2 bedrooms: $2,000 to $3,000 per square metre.

2 – 3 - 4 bedrooms: $2,500 to $4,000 per square metre.

3 – 5 or more bedrooms: $3,000-$5,000 per square metre.

Note: figures calculated based on finishing and design.

Costs go up if your choice includes premium finishes or more detailed designs.

Different Sydney suburbs' cost per square metre

Average costs per square metre for a few Sydney suburbs:

  1. Eastern Suburbs - $3,000 - $6,000.
  2. Northern Beaches - $2,500 - $5,000.
  3. Inner West - $2,000 - $4,000.
  4. Western Suburbs - $1,500 - $3,000.

We recommend you talk with a local architect or builder with experience in that area if you are thinking of building in a particular suburb.

Budget Guide for House Building in Sydney

Careful planning is the Key to make sure you stay in your planned budget when building a house in Sydney.

Here are a few suggestions:

1. Setting Priorities - Create a list of your needs and allocate your budget accordingly. Make use of cost comparisons for essential items, concentrating instead on those areas that mean the most to you.

2. Pricing Evaluation - Obtain price estimates from builders and suppliers by doing research and asking for quotes. This will allow you to final the best cost options are available.

3. Reserve Fund - Have a contingency fund set aside in case running costs or charges occur during the building process.

Budgeting for this situation should form around 10% – 15% of your total budget.

4. Long-Term Considerations - While materials or finishes might seem attractive, think in the longer term about durability and maintenance.

Investing in energy/ high-quality materials will save money.

5 – Expert advice - Talk with building experts who can provide insights to help you make informed decisions regarding your budget.

Hidden Costs

In addition to the cost of building a house in Sydney, don't forget hidden cost considerations that may arise during construction.

Several costs are hidden in the following:

1 – Site Condition - Depending on the condition of the site, extra work may be required to prepare it for construction. This could involve clearing vegetation, leveling the ground or dealing with soil issues.

2 – Fees/permits Types - Fees and permits of various kinds are required during construction, such as development application fees, certification fees for construction and inspection fees.

3 – Amenities - Your home must be connected properly with water, electricity, gas and telecommunications. In terms of cost this is determined by location and ease of accessibility.

4 – Customise - Making improvements or altering the design while construction is in process will incur extra charges.


Negotiating with Sydney Builders

Keep the following in mind when you're getting ready to go into preliminary negotiations:

1 – Research - Use research to compare prices and services of builders and then apply for quotes. This will help you to understand and be more ready when negotiation comes along.

2 - Communication - Let the builders know what you want. Give them an estimate. Let them know what is most important to you.

3 – Cost splitting - Request an estimate from your builder to get the costs all broken down. This way, it's easier for you to decide where negotiating is possible or where there's room for savings.

4 - Money's-worth - When you're considering prices, be sure that you've properly assessed the value of each builder. You should be looking at things like their reputation, the length and quality of their work and feedback from previous clients well before deciding.

5- Focus - Apart from just bargaining over the entire project's cost, focus on specific areas for this action first. Thorough investigation results in discussions and ends up in agreements.

6 - Compromise partnership - Negotiations are based on compromises from both sides. You are looking for a middle road where all parties can be satisfied with quality of work, together with the capabilities of the builders, rather than focusing solely upon getting out-sourced at cut prices.

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