How much does it cost to build a house in Canberra?

Based on the average Canberra house size of greenfield land (undeveloped sites) being 270sqm to 300sqm, and brownfield (sites used for other areas previously) spanning anywhere from 350sqm to 380sqm, a new home build could start at $553,500, and reach as much as $1.539 million.

Canberra, Australian Capital Territory, Australia. Picture: Getty

Cost of building a house in Canberra

The amount of bedrooms you choose to incorporate into your home design is perhaps one of the biggest factors in determining the cost of a new home build in Canberra because prices are calculated on a per square metre basis.

A two bedroom house build in Canberra will cost between $234,000 and $474,000, based on an average two-bedroom home size of 120sqm.

However, many Canberra homes are unlikely to be only two bedrooms and if they are, than typically they are likely to be an apartment or townhouse.

McDonald Jones Homes chief operating officer Danny Cupac said the difference between building a three bedroom or a four bedroom home in Canberra was about $60,000 to $80,000.

Based on an average three-bedroom house size of 175sqm, the cost of will range between $339,500 and $691,250.

A four bedroom house build in Canberra will typically cost anywhere from $582,000 to $1,185,000. This is based on a floorplan size of 260sqm.

Cost of building a single storey or two-storey home in Canberra

A single level Canberra new build will cost about $623,000, while a two storey home will add about $136,000, according to Mr Cupac.

“A premium build would range from $700 to $750,000 plus GST in this market,” he said.

Adding an extra level to a new build will usually cost about $800 per sqm.

But this is dependent on the type of build and the techniques used, and as a result this could see the cost rise to $1000 per sqm.

Put simply, adding an extra level to a new home build will see the cost rise due to the need for extra materials, labour and coordination costs.

The added difficulty of the build, more complex construction methods, including extra reinforcement, adding staircases and external walls, as well as the cost of hiring equipment such as scaffolding all add to the final figure.

Other factors that impacts the cost of building a home in Canberra

Mr Cupac said other factors to consider which impact the total cost of a new home in Canberra include:

Building approval fees

These can amount to anywhere from $12,000 to $15,000 compared to that of home builds on the south coast, which cost an average $8000, he said.

Insulation and windows

These can add $10,000 to $15,000 to the final costs.

Electric appliances

Mr Cupac said upgrading appliances from gas to electric is often necessary to cope with Canberra weather and this will add an additional $5000.

Design changes

Making altercations of a two storey standard home plan will add anywhere from $5000 to $10,000 to final costs.  

Land costs

According to the Urban Development Institute’s State of the Land report, land in the ACT ranked second in the nation for price growth, recording a 6.5% increase to $1409 per sqm.

Conveyance (stamp) duty

Conveyance duty (stamp duty as known in the ACT) is usually the largest upfront cost required to pay on a home outside of the initial deposit.

A typical stamp duty fee for an established home purchase, valued at $1 million as a primary residence, would incur $34,270 in stamp duty.

However, conveyance duty is calculated on purchase price – and the cost of buying land typically is significantly cheaper than buying an established home – so a significant saving by buying land to build can be made.

For example, buying land valued at $500,000 and then building a $500,000 home, will see only $8,720 in conveyance duty owed.

Materials

The cost of the materials play a big role in the final cost of a new home build. Designer features such as custom cabinetry can significantly add to the ultimate build price.

The build site

If the land you plan to build your new home on is sloping or has other access difficulties, the build will be more expensive due to the need for excavating, building retaining walls, which add to the build length time and complexity.

Unforeseen delays

The build price can be hampered by delays from wet weather because they impact scheduling, which results in problems with coordinating trades, and can ultimately blow out the home build timeline.

Extra costs outside the actual home build

This includes a letter box, landscaping, fencing and gates, driveways, exterior lighting, security and maybe a swimming pool.

Government incentives and grants for new homes

Here is a brief guide to government grants that may be available if you are building a new home in the ACT:

Home Buyer Concession Scheme

A First Home Owners Grant is no longer available in the ACT but there is the alternative, the Home Buyer Concession Scheme.

It is means-tested and provides home buyers with a maximum concession of $34,270 and all properties in the ACT are eligible.

It works to remove or reduce stamp duty on properties.

Stamp duty relief 

Eligible first home owners are not required to pay stamp duty on land or properties valued up to $1 million.

There is also a discounted rate on homes valued between $1 million and $1.455 million.

HomeBuilder

The HomeBuilder initiative provided a $25,000 grant towards new houses for eligible contracts entered into between June 4 2020 and December 31 2020, and $15,000 for new contracts entered into between January 1 2021 and March 31 2021.

While the HomeBuilder grant is not applicable to contracts signed after such dates, the deadline for submitting a claim for the grant has been extended to 30 June, 2025.