How Much Does It Cost To Build A House In The ACT?

It costs between $1,940 and $3,950 a square metre to build a house in Canberra, according to recent Australian construction industry research.

So, the average Canberra new home of 258.9sqm would cost anything from $502,266 and $1,022,655 to build.

Cost to build a house in Canberra – per number of bedrooms

How many bedrooms you need to have will go some way to determining how much it costs to build your home in Canberra.

Put simply, that’s because the more bedrooms a home has, the larger it tends to be. As most builds are priced on a “per square metre” basis, more square metres means more cost.

MORE: How much does it cost to build a house in Tasmania?

Cost of building a 2-bedroom house in Canberra

It’s likely to cost you between $234,000 to $474,000 to build a standard two-bedroom house in Canberra, assuming a home that is just 120sqm.

That said, there aren’t many new houses being built in Canberra that have just two bedrooms. Instead, homes of this size are usually apartments or townhouses and most new houses that get built in Canberra comprise three bedrooms or more.

Cost of building a 3-bedroom house in Canberra

It costs between $339,500 and $691,250 to build a three-bedroom house in Canberra. This is based on an average three-bedroom house size of 175sqm.

Cost of building a 4-bedroom house in Canberra

It usually costs anywhere from $582,000 to $1,185,000 to build a four-bedroom house in Canberra, assuming an average house size of 260sqm.

Interestingly, the average size of a new four-bedroom home is almost exactly the same size of a new house in Canberra. This shows just how popular four bedroom homes are among people building in the ACT.

Cost of building a 5-bedroom house in Canberra

Building a five-bedroom house in Canberra should cost between $585,000 and $1,185,000 for a standard property of 300sqm.

If you’re looking to build a larger home, or something particularly luxurious, you could end up spending far more.

Building an average Canberra home would cost anything from $502,266 and $1,022,655. Picture: realestate.com.au/buy

How much does a second storey cost to build in Canberra?

It usually costs around $800 a square metre to add an extra storey. However, depending on the type of build and the techniques used, it may even cost as much as $1,000 a square metre.

This is likely to add around 10% to 20% to the cost of building a home.

Building an extra storey generally means spending more on extra materials, labour and coordination costs. The extra cost comes from:

the added difficulty of the build
the need for more complex construction methods, including extra reinforcement
the cost of adding staircases and additional external walls
the cost of hiring equipment such as scaffolding.

MORE: How much does it cost to build a house in Sydney?

Is it cheaper to build or to buy a house in Canberra?

It can be cheaper to build a house than to buy one in Canberra. However, whether this is the case in your scenario will depend on several factors.

The value of the land. The average cost of vacant land in Canberra is $679,375, according to one report. That makes it one of Australia’s most expensive cities in which to buy land.
The cost of building. The more expensive the build – for instance if you build a large home, use a custom design or use expensive materials – the more it’s likely to cost you overall.
Conveyance (stamp) duty. Conveyance duty (as stamp duty is known in the ACT) is often the largest upfront cost you’ll need to pay on a home other than a deposit. If you were to buy an established home valued $1 million as your primary residence you would usually be liable for $34,270 in stamp duty. Given that conveyance duty is calculated on purchase price – and the cost of buying land tends to be much cheaper than buying an established home – you could make a significant saving by buying land to build. For instance, if you were to buy land valued at $500,000 and then build a $500,000 home, you would pay only $8,720 in conveyance duty.
Conveyance duty concessions and exemptions. Eligible first home buyers in the ACT receive an exemption from conveyance duty on conveyance duty in homes or land valued up to $1 million. They also pay a reduced rate of stamp duty on homes valued between $1 million and $1,455,000. However, income thresholds apply.
Rental accommodation. If you’re building, chances are you’ll need somewhere to live until construction is complete. If that’s the case, you may need to factor the cost of renting in too.
Other costs. Building a house in the ACT means you’ll also need to factor in other costs. These include such things as building and pest inspections, removalist costs and conveyancer’s or solicitor’s costs.

In Canberra, it can be cheaper to build a house than to buy one but it will depend on various factors. Picture: realestate.com.au/buy

What factors affect the cost of building a home in Canberra?

The cost to build a home in Canberra is usually influenced by six key factors.

1. The size of home

Because bigger homes require more materials, they also tend to be more expensive.

The average size of a new property in the ACT is 259.8sqm: far larger than the average Australian home size of 195.8sqm, according to a Commsec report. It’s also well above the national average new home size of 232.2sqm.

Size alone means Canberra homes can be more expensive to build than homes in other Australian cities.

2. Materials

The cost of the materials you can use can have a profound impact on how much it ultimately costs to build your home. For example, designer features like custom joinery and specialty finishes can add significantly to the ultimate build price.

3. The site you’re building on

The site you build on will also influence the price you ultimately pay.

If your site is sloping or otherwise difficult, the build is likely to be more expensive because the builder may need to excavate, build retaining walls, and make the build process more complex and time consuming.

4. Any delays

Delays – from both the weather and other factors – can also impact the build price. That is because delays can impact scheduling, making it more difficult to coordinate trades efficiently, and blowing out the time it takes to complete the project.

5. The complexity of your design

The more complex and bespoke a design is, the more it’s likely to cost to build.

6. Costs outside of the build itself

Not all the costs of building a home come from the construction itself. Unless you want your site to be barren, you’re likely to also have to account for things like driveway paving, garden landscaping, fencing and perhaps even a swimming pool.

FAQs about building a house in Canberra

Below we answer some common questions people have when it comes to building a home in Canberra.

What is the cheapest way to build a new house in Canberra?

The cheapest way to build a new house is almost always to use a project home builder.

Project builders repeat the same design many times, giving them economies of scale both in materials and processes. Bespoke builds, by their very nature, are different each time.

MORE: How much does it cost to build a house in Perth?

Do I need a contingency buffer when I build?

Yes, you should always have a contingency buffer. How much this should be depends on where you are in the project. At the start, you should allow for as much as 15% to 20%, because there are a lot of unforeseens.

As the build progresses, you can reduce your buffer to between 5% to 10%.

How long does it take to build a house in Canberra?

Between four months and 12 months – that’s after you’ve bought the land.

Is it cheaper to renovate or knock down and rebuild?

It is often cheaper to build than renovate, especially if the renovations are expensive ones. That’s because renovating comes with a lot of unknowns, whereas with a knockdown/rebuild you’re starting from scratch.

Ultimately, however, it will depend on factors, including the complexity of the renovation, and how much of the existing home will be incorporated into your design.

What government grants are available for new homes in Canberra?

Below are list of some of the more common government grants that may be available if you’re buying a new home in the ACT:

First Home Buyer Stamp Duty Relief. Eligible first home owners pay no stamp duty on land or properties valued up to $1,000,000 and receive a discounted rate on homes valued between $1,000,000 and $1,455,000.
HomeBuilder. HomeBuilder provided a $25,000 grant towards new houses for eligible contracts entered into between 4 June 2020 and 31 December 2020 and $15,000 for new contracts entered into between 1 January 2021 and 31 March 2021. The HomeBuilder Grant does not apply to contracts entered into after this date. However, the deadline for submitting a claim for the grant has been extended to 30 June 2025.