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.
Note: The building industry appears to be coming out of its crisis period of materials shortages, supply chain problems and labor shortages which added approximately 14% to the cost of building in 2021/22. This created stresses both for builders and clients with an unprecedented number of failures of building companies. The last 12 months, however, have seen a slowing down a levelling of building costs.
2023 may see a longer period of price stability which will hopefully provide a much more predictable environment for builders and clients alike.
For some context, we have calculated the approximated finished square metre cost of some our recent projects. You can look at these on our projects page here
|Lum Road House||$4,000m2|
|Electric Tree House||$4,500m2|
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|
|Typical timber or metal frame, brick veneer, weatherboard, rendered sheet finishes, carpet, floating timber or tile floor, 2.7m ceiling|
|Under 200m2||$1,750 – $2,000m2|
|Over 200m2||$1,500 – $1,870m2|
|Brick block, Hebel or similar construction, rendered finishes, carpet, floating timber or tile floors, 3m ceiling, some external finishes|
|Under 3002||$2,100 – $2,500m2|
|Over 300m2||$1,860 – $2,240m2|
|Brick block, Hebel or similar construction, rendered finishes, quality carpet, tiles or solid timber flooring 3-4m ceilings, decorative features to windows, doors, eaves etc, basement garage|
|Under 300m2||$3,100 – $3,780m2|
|Over 300m2||$2,870 – $3,550m2|
|Standard Kitchen||$14,360 – $19,760|
|Quality Kitchen||$22,200 – $35,600|
|Luxury Kitchen||$32,690 – $50,900|
|Standard Bathroom||$13,360 – $22,810|
|Quality Bathroom||$20,640 – $32,150|
|Luxury Bathroom||$32,000 – $50,360|
|Standard Ensuite||$8,490 – $13,090|
|Quality Ensuite||$15,020 – $21,200|
|Luxury Ensuite||$221,540 – $34,090|
|Standard – Luxury||$6,000 – $22,680|
|Standard – Luxury||$6,550 – $21,530|
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, slope of site and accessibility to the work site. CKA Group can help estimate these costs.
Stage 4 GST and Professional Fee
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 construction. Your accountant or taxation consultant can advise you of this.
You will also need to make 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% – 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%
- Labor 30%
- GST, taxes, fees, permits 20%
- Builders profit margin 10%
For people considering being owner builders, savings can be made in labor costs and builders profit margin, although plumbing and electrical work must be carried out by a licensed contractor. 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 Homeowners Warranty Insurance. CKA Group can assist through this process. If you would like to Print or View this file in a PDF… CLICK HERE