Building Costs in Sydney Update 2023

Learn the true cost of building a home in Sydney

Almost a million new homes are forecast to be built in Australia for the five years between 2023 and 2028. It’s 35,000 short of the government’s goal and assumes no further increases to the cash rate. It also does not factor in land supply as a constraint on detached home building.  Unfortunately, homeowners have yet to face the full impact of an increasing cash rate on their mortgages, and the ramifications may continue to influence the building supply industry well into 2024.

The current market influences have made building a home in Sydney in 2023 a significant financial undertaking. The cost of a new Sydney home can vary greatly depending on a number of factors, including the size and design of the home, its location, and the materials used.

According to to Property Update, the average cost of building a home in Sydney in 2023 is estimated to be around $1600–$1900 per square metre. This figure is for a basic three-bedroom, single-level, all-brick home, so your mileage will vary depending on your needs.

Costs for getting into your new home are also dependent on location, with costs in the outer suburbs generally being cheaper than those nearer the city because of less demand for land. However, remote building costs can quickly escalate as the extra transport distance starts to become a factor.

Building and land supply shortages are also issues many new home buyers will continue to face for some time. According to the HIA, supply chain issues are responsible for a 4 percent rise in building costs.

The land has been in huge demand over the last couple of decades and will continue to be so in 2023 and beyond. The HIA also revealed that building-related trades raised labour prices by more than 10 percent in the September quarter of 2022.

It’s also important to consider the cost of permits and approvals that may be required. These can include planning permits, building permits, and bushfire assessments, which can add thousands of dollars to the overall cost of building a home.

 

How to get control over your building costs with the help of Newin

Times are challenging but getting into a new home in Sydney is still an achievable dream, even more so when you choose to partner with a reliable building cost estimator like Newin. By drawing on their more than a decade of experience in the building industry, Newin will help you find the best deals, control your costs, and keep your builders honest with regular updates. Call today to find out how to reduce your building costs in Sydney by a significant margin.

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