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.
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.
– ABS, Characteristics of new Residential Dwellings – A 15 year Summary, 15/04/2020
– RLB, Riders Digest 2021, pp. 24-25.
– ABS, Residential Dwellings: Values, Mean Price and Number by State and Territories, 2021.
– ABS, Building Approvals Australia, Aug. 2021.
– UDIA, State of the Land, p9, 2021
– Dr. D. Mardiasmo, PRD Chief Economist, Australian Economic & Property Report, p10. Aug. 2021.
– Reserve Bank of Australia, 2021.
– HomeBuilder Grant, RevenueSA, 2021.