The average price of building a home in Australia amounts to AUD 1,183 per square metre, yet several factors will make it more or less expensive, according to the Housing Industry Association (HIA).
HIA senior economist Shane Garrett said that for anyone who plans to build a house in the country, residential land should be the first thing to be crossed out on their checklist.
Land prices will greatly determine the price of your home construction, especially where you plan to buy it. In Sydney, you will need to spend AUD 933 per square metre, which is significantly higher than AUD 223 per square metre in Hobart. HIA data showed that the average lot size in the country spans 474 square metres.
If you intend to construct a 243-square-metre house, the HIA estimates that it will cost you less than AUD 300,000. There are, however, other factors that could make it more expensive. Design, planning permits and site works are just some of these factors. Even the smaller details in Australian homes such as internal sliding doors from Triline Quality Door Systems may also contribute to the overall price.
An SQM Research report tagged the southwest part of Melbourne as the best market for home price growth in 2016. For those planning to sell their home in the future, you should consider places such as Hoppers Crossing and Point Cook.
Home prices in these areas rose 42 percent in the year to September. SQM Managing Director Louis Christopher said that a “rapid population growth” mainly drove the increase in home values in Melbourne. More people migrating to the city will continue to fuel demand for housing that will likely go on until next year.
While residential land will account for a large share of building expenses, you could save money by downsizing on certain features.