When building a new home, there are many factors to consider – with one of the most significant factors being cost. As the Australian property market continues to fluctuate, prices are expected to increase by 3.5% in Melbourne. With that, prices may vary between the inner-suburbs and outer-suburbs in Melbourne.
Apart from choosing the right location, the size of your build, site accessibility, number of levels, type of construction (brick veneer, timber frame or double skin brick), slope of the property as well as the choice of fixtures and fittings can greatly affect the cost of your home. It’s also important to note that building on a block that isn’t level or opting for higher-quality materials can increase the cost.
The volatility of exchange rates, supply chain issues and shortage of materials and labour can also impact the overall cost of building a home.
Here’s a typical breakdown of the cost to build a home in Melbourne:
- Material costs: 40%
- Labour costs: 40%
- Taxes, charges, insurance, council fees, permits: 5%
- Contingency cost: 15%
Here’s a breakdown of the cost to build a 4-bedroom house in Melbourne:
If you’re planning to build a 4-bedroom house in Melbourne, the average cost may range from $2,400 m2 to $4,900+ m2 depending on the overall design, finishes, fixtures and materials chosen.
- $2,400 m2 for a 4-bedroom brick veneer single level home on a level block with budget materials
- $2,800 m2 for a 4-bedroom brick veneer single level project home with mid-range finishes
- $3,800 m2 for a 4-bedroom full brick two level home using top quality finishes
- $4,900+ m2 for an architect designed 4 bedroom full brick, two level home using top quality finishes
Taking into consideration the average size of a house in Australia is at 230 m2, the cost of an average 4-bedroom custom built house would range from $552,000 to $1,127,000.
What are some ways to optimise cost?
While building a home can be expensive, there are some ways to achieve your dream home without compromising on quality.
- Location is key
- It’s important to choose an accessible location – one that is not too remote as it may affect shipping costs and ease of connectivity to local services.
- Suburbs such as Mitcham and Wantirna are highly sought-after by first-time home owners for its close proximity to the Melbourne CBD and availability of schools, transport routes and lifestyle amenities.
- Hire a building company that offers design
- Hiring an architect can rack up costs quickly. Working with a home builder that offers a range of custom designs can keep costs within your budget without compromising on your needs.
- Stay focused
- Make a list of your must-have home features in accordance to the budget you have in mind before approaching a home builder.
- This way, you can avoid blowing your budget out of the water by adding new costly features along the way.
- Keep your landscape design simple
- Elaborate landscaping and backyard features such as swimming pools will certainly add to the cost of your home.
We hope this article has given you a better idea into the cost of building a 4-bedroom house in Melbourne. As you embark on the process, it’s important to remember that the cost may vary depending on the materials chosen and the final design.
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Please note that the information provided by HouseSpec, including but not limited to advice, suggestions, and opinions, is intended for general guidance only. While we strive to ensure the accuracy and reliability of the content, it reflects our knowledge and opinion as of the date of publication. Given the dynamic nature of the building and construction industry, the specifics may evolve over time.
We encourage our readers to consider the context of their individual situations and, for personalized advice or further details, get in touch with us. Our team is always ready to provide the most current and tailored information to assist you with your specific needs and projects.
At HouseSpec Builders, we are a small business run by a passionate and friendly team with a combined experience of over 60 years of experience in homebuilding. We are 5-star rated on Google as a trusted, reliable home builder in Melbourne and we pride ourselves on delivering personal service to meet your home building needs in accordance to your budget.
