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Many factors influence the cost of building a new home in Australia. Besides the most obvious ones of lot price, building materials, design and labour, several other factors are now influencing the market.
Historic low interest rates, implemented in the wake of the pandemic related slow-down, have fuelled a general real estate boom – causing significant increases in land values. At the same time, pandemic related delays to international shipping have caused the cost of imports to soar, which are invariably being passed on to the customer. Finally, government stimulus in the form of the HomeBuilder subsidy scheme has led to heightened levels of activity in the building industry, causing even more delays for new construction projects.
The average cost of building a new home in Australia
Savvy's Average Cost of Building a New Home in Australia infographic, update for 2021, presents the latest findings from a variety renowned sources. For Aussies looking to build their first or next home, there are a myriad of finance options available. Making use of a construction home loan is a safe bet for most circumstances.
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The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
