2022 Cost of Building a Home in Sydney

2022 Cost of Building a Home in Sydney

 The Australian Bureau of Statistics (ABS) reports the average cost of building a home in Australia in 2021 is $345,000. However, this is an average that fails to fill you in with all the different variables that will go into creating your dream home. Nor does it account for land prices.

The location of the house, the land area, the shape of the block, the size of the house, and many more variables will significantly impact the 2022 cost of building a house in Sydney.

 

Sydney building costs and supply chain issues

Australia’s building industry is heavily reliant on overseas suppliers and the last couple of years has created significant bottlenecks in the supply chain. Combine these issues with a spate of wet weather, flooding, and labour shortages, and you have a recipe for rising prices making new home builds in Sydney more expensive than they were in 2021.

According to RealEstate.com, builders are reporting material price rises of 15%, to as much as 45%. Many building contractors have moved from fixed price contracts to Cost Plus contracts. This type of contract allows builders to legally adjust the price at the end of the job to protect themselves against rising costs and extended time frames. Of course, a Cost Plus contract is more complex and requires monthly reporting to the client.

 

Land cost

 

Before you can build a house in Sydney, you need somewhere to put it. Your choice of address will influence how much your land costs. In 2021, the median price for a Sydney lot was $495,000. The square metre average price for land came to $1285.

 

Average building cost

The ABS puts the average square metre cost at $1393 in 2021. This figure does not include bespoke design elements, site works such as retaining walls, DA applications, or planning permits.

 

How a building construction cost estimator can help

Construction cost estimators like Newin Building Estimating Services are a professional service with extensive experience in the building industry and associated trades. If you are looking to understand the latest building costs in Sydney, reduce your building construction costs and streamline your building project, a building cost estimator can help.

 

Other useful links:

Contact Hai today for a FREE no-obligation discussion about your project.

13000 NEWIN (63 946)

Request a callback today!

14 + 15 =

Get A Quote
Call Now ButtonCall Now