Building a house in the Northern Territory costs between $2,150 and $4,000 a square metre, according to recent Australian construction industry research.
That means a standard NT house would therefore cost between $469,130 and $860,800 to build, based on the territory-wide average new house size of 218.2sqm.
Given the median Darwin property was worth $503,000 in August 2024 according to PropTrack (including both houses and apartments), building a new house can be an attractive option – often less expensive than buying an existing home, especially when you factor in the NT government’s home building incentives.
If you’re thinking of building a home in the NT, we break down the costs and give you the main factors you’ll need to consider when calculating the final price.
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 800 450"%3E%3C/svg%3E)
Building a house in the NT costs between $2,150 and $4,000 a square metre. Picture: realestate.com.au/buy
Cost to build a house in the NT – per number of bedrooms
One of the most important factors that affects how much a house costs in the NT is the number of bedrooms.
MORE: How much does it cost to build a house in the ACT?
That’s simply because more bedrooms usually means more space. And, because most construction jobs are costed on a “per square metre” basis, more space means more money. Still, the cost per square metre can vary wildly depending on whether you choose a project home, a fully architect-designed residence or something in between.
Cost of building a 2-bedroom house in NT
It costs $258,000 to $480,000 to build a two-bedroom house in the NT, assuming a home of a home size of 120sqm.
It’s worth noting that few new houses in NT tend to be just two bedrooms. This is mainly the domain of villas or townhouses.
Cost of building a 3-bedroom house in NT
It costs between $376,250 and $700,000 to build a standard three-bedroom house in Darwin and the NT of 175sqm.
That said, the average new home size in the NT is 218.2sqm, which means most new homes come with more than three bedrooms.
Cost of building a 4-bedroom house in NT
It costs between $559,000 to $1,040,000 to build a four-bedroom house in Darwin or the NT.
This assumes a home of 260sqm, a typical size for a home with four-bedrooms and two bathrooms.
Cost of building a 5-bedroom house in NT
It costs anywhere from $645,500 to $1,200,000 to build a standard five-bedroom home of 300sqm in the NT.
Given the size of the home, it’s in this bracket that prices can vary most wildly.
At the bottom end of the range, you would probably be looking at a project home with few individualised features. At the top end of this price range, you could potentially buy a large designer home with high quality finishes, or a unique property that’s specifically customised to your family’s lifestyle.
The NT government offers incentives, making building cheaper than buying a house. Picture: realestate.com.au/buy
How much does a second storey cost to build in NT?
It usually costs up to $800 per square metre extra to build a two-storey home in the NT when compared with the cost of building a single storey home of the same total floor area.
MORE: How much does it cost to build a house in Tasmania?
The extra costs involved in building a two-storey house comes down to two key factors.
1. The complexity of building a two-storey house
- Once you build a home of more than one storey, you need to employ more complex construction methods.
- This usually includes using scaffolding, as well as additional materials, skilled labour and safety measures.
2. There are additional structural costs in building a two-storey house
- While a single-storey home needs a larger foundation and roof area, which can add to the costs, two storey houses require structural elements that single storey homes don’t.
- This often includes stronger structural supports, additional load-bearing walls, and deeper foundations to support the weight of the structure.
The extra structural measures needed for a two-storey house will usually add between 10% and 20% per square metre to the cost of building a two-storey house vs a one-storey house.
Is it cheaper to build or to buy a house in the NT?
It is often cheaper to build a house than buy one in Darwin and the NT and many people see it as a better option – especially as the NT government is offering real incentives for people to build.
MORE: How much does it cost to build a house in Sydney?
To calculate whether it will be cheaper in your circumstances to buy or build a house in the NT, you should factor in the following costs.
- The value of the land. The average cost of vacant land in Darwin is $255,120, according to one recent report. That said, you may have to pay a lot more if you want to build in an established suburb close to the centre of Darwin.
- The cost of building. Building costs vary significantly depending on where you are and the availability of labour and materials. In working out the cost of building, you’ll need to account for factors such as the size of the property and whether you opt for a project or custom-built home.
- Stamp duty. In the NT, stamp duty can be expensive. For instance, on an $800,000 home, you would usually pay stamp duty of $39,600. Because stamp duty is calculated on the value of the property transaction, you can save a lot in stamp duty. That’s because vacant land tends to be cheaper than buying a dwelling, and the cost of building a house is stamp duty free.
- Transfer duty exemption. Better still, you may even qualify for a stamp duty exemption when you build a home. Until 30 June 2027, the NT government is providing a full exemption for buyers of some house and land packages. You can see whether you qualify and apply for exemption here.
- First Home Owner Assistance. The NT government’s First Home Owner Assistance provides up to $50,000 to first home buyers who build or buy a home. You can read about the scheme here.
- Other costs. Common other costs associated with building a home in the NT can include site preparation and surveying costs, design and approval fees, utility connections and landscaping. If you’re renting while you build, you’ll need to factor this cost in also.
What factors affect the cost of building a home in the NT?
The cost to build a home in the NT is usually influenced by six key factors.
1. The size of home you build
The average size of a new property in the NT is 218.2sqm. That’s considerably larger than the average Australian home size of 195.8sqm, according to a Commsec report.
Bigger homes with more bedrooms usually require more materials and take more time to build – and that also leads to higher costs.
2. The materials you use
Different building materials also cost different amounts. Meanwhile, fitting – especially in the kitchen and bathroom – can also really add to the ultimate price of a home.
3. Your building site
It’s almost always cheaper to build on flat land with easy access than on sloping blocks with limited access. A severely sloping or tight block can add considerable money to the cost of any build.
That’s because it will mean the builder may not be able to get heavy machinery onto the site, so they’ll have to use other methods for tasks like excavation.
Zoning and planning restrictions can also affect the ultimate cost too – as can the type of soil you’re building on. For instance, building on sand usually requires deeper (and more expensive) foundations.
4. Weather delays
Weather and other delays can have a real impact on how a building project progresses, especially in a tropical climate like Darwin’s.
Storms and unexpected heavy rain can affect scheduling, making it hard to coordinate trades in the most efficient way.
5. The complexity of your design
Simple designs usually cost less to build than more expensive ones. Project homes are often cheaper than bespoke ones because when the same design is built many times builders can achieve economies by ordering materials in bulk.
6. Costs outside of the build itself
Most home builds involve costs outside of the building itself. This can include things such as landscaping and local council approvals.
If you’re putting in a swimming pool, you should factor this too, as well as any fencing costs.
The cheapest way to build a house in the NT is through a project home or volume builder. Picture: realestate.com.au/buy
FAQs about building a house in the NT
Here are some of the most common questions people have about building a house in Darwin and the NT.
What is the cheapest way to build a new house in the NT?
Usually the cheapest way to build a house in Darwin or the NT is to go through a project home or “volume” builder. That’s because these builders get economies of scale. If you buy a house and land package from one and you’re a first home buyer, you may even qualify for a $50,000 grant towards the cost of the home, and have no stamp duty to pay.
To get the cheapest price from a project builder, you’ll usually need a suitable block of land. Any modifications, due to uneven or irregular sized land or poor access, can add significantly to the cost of the build.
Do you need a contingency buffer when building a home?
You should always set aside some money as a contingency when you build a home in the NT. At the start of the project, when you’re not sure exactly what you’re dealing with, this might even be as high as 20%. However, once the project is underway, you can probably reduce it to between 5% and 10%.
More complex builds generally require higher buffers because there’s more chance something will go wrong.
How long does it take to build a house in the NT?
It usually takes between four months and 12 months to build a house in the NT, once building has started.
What government grants apply to new homes in NT?
The NT offers some generous grants to people building new homes in the NT.
- First Home Owner Grant. This scheme provides $50,000 to eligible first home buyers who buy an eligible house and land package in the NT, making it the most generous first home buyer scheme in the country.
- House and Land Package Exemption (HLPE). Eligible house and land packages attract no stamp duty in the NT. This exemption applies regardless of whether it’s your first home or not.
- HomeBuild Access. NT buyers can also access low deposit home loans for new properties and vacant land. A threshold of $475,000 applies for properties of two bedrooms or less, and a $550,000 threshold for properties of three or more bedrooms. If you’re building a house, these thresholds apply to the total cost of the land and home.
