Home » New Home Building Cost Indicator

New Home Building Cost Indicator

Establishing the likely cost of a new home can be a difficult process and many people underestimate how much it might cost to translate their ideas into reality.

CKA Group has designed hundreds of homes in Australia, United States, China, India, UAE and other countries. These have varied from modest villas up to substantial palaces with correspondingly varying price tags.

Most people have an idea of what they think a house should cost to build on a square metre basis, or even per square (one square being 100 square feet or approximately 10 square metres). However, the rate can vary dramatically depending on the site conditions, standard of finishes, size of the house and many other factors. Homes we have designed have varied from $1,800 to $10, 000 per square metre.

What we do know is that we can provide stunning magazine quality award winning homes to suit almost any budget and brief. We can help you achieve that too.

This guide aims to provide some clarity to what your house might cost by breaking down its components to manageable items.

For some context, we have calculated the approximate finished square metre costs of some of our recent projects. You can look at these on our website, www.ckagroup.com.au

Ringwood House – $1,900 per sqm
Mornington House – $2,100 per sqm
Nunawading House – $2,400 per sqm
Lum Road House – $4,000 per sqm
Electric Tree House – $4,500 per sqm

Picture1 1 - New Home Building Cost Indicator
Picture2 - New Home Building Cost Indicator
Picture3 - New Home Building Cost Indicator

Approximate new home costs can be calculated using the following estimating process

Stage-1: Calculate the structural cost of new construction
Stage-2: Calculate the fitout cost of kitchen, bathrooms, and laundries and add these to the structural cost
Stage-3: Calculate the cost of decks, verandahs, garages etc
Stage-4: Calculate the cost of professional fees, permits, authorities charges, connection fees and add GST

Stage-1

Standard Construction
Typical timber or metal frame, brick veneer, weatherboard, rendered sheet finishes, carpet, floating timber or tile floor, 2.7m ceiling
Under 200 sq m $1,400 - $1,600 per sq m
Over 200 sq m $1,200 - $1,500 per sq m
Quality Construction
Brick block, Hebel or similar construction, rendered finishes, carpet, floating timbers or tile floor, 3m ceiling, some external decorative finishes
Under 300sq m $1,700 – $2,000 sq m
Over 300 sq m $1,500 - $1,800 per sq m
Luxury Construction
Brick block, Hebel or similar construction, rendered finishes, quality carpet, tiles or solid timber flooring, 3 – 4 m ceilings, decorative features to windows, doors, eaves etc, basement garage
Under 300sq m $2,500 - $3,000 per sq m
Over 300 sq m $2,300 - $2,800 per sq m

Stage-2

Kitchen
Standard Kitchen $12,500 - $18,000
Quality Kitchen $18,500 - $32,000
Luxury Kitchen $31,000 - $70,000
Bathroom
Standard Bathroom $10,700 - $18,270
Quality Bathroom $16,540 - $25,740
Luxury Bathroom $25,620 - $40,330
Ensuite
Standard Ensuite $8,500 - $12,500
Quality Ensuite $14,000 - $18,500
Luxury Ensuite $18,050 - $31,000
Laundry
Standard - Luxury $4,800 - $18,160
Powder Room
Standard - Luxury $5,240 - $17,270

Stage-3

On a relatively flat site with good soil, add the following percentage allowance for external works and services to cover fencing, paths, driveways, landscaping, drainage and water supply, electrical and gas connections.

External works and services
Project up to $500K Add 10% - 15%
Project from $500K - $1.5m Add 8% - 12%
Project over $1.5m Add 6% - 8%

Adjustments may need to be made to the above percentages depending on site conditions such as soil condition, slope of site and accessibility to the work site. We can help estimate these costs.

Stage-4

GST & Professional Fees

You will need to add 10% GST to your estimate. You may be able to claim some of this back depending on your personal taxation structure and the nature of your renovation. Your accountant or taxation consultant can advise you of this.

You will also need to make an allowance for architects, structural engineers and possibly other design consultants fees. New building works require planning and building permits, as well as council approvals, and in some cases zoning approval. Speak with your Council, as they should be able to provide you with estimates of costs, as well as expected approval time frames. These would typically be a total of 10% to 15% of the construction cost, and generally need to be paid in the early stages of the project.

Total Cost Structure

The approximate cost structure of new homes and renovations is as follows:
Materials – 40%
Labour – 30%
GST, taxes, fees, permits – 20%
Builders profit margin – 10%

Owner Builders

For people considering being owner builders, savings may be made in labour costs and builders’ profit margin, although plumbing and electrical work must always be done by licensed contractors.

Owner builders may not obtain the same trade discounts as builders, so a premium of 5% to 10% on materials may apply.

Owner builders must be registered and will need to pay Home Owners Warranty Insurance. CKA can assist owner through this process.