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

Based on the territory-wide average new house size of 218.2sqm, a new house build in Darwin will cost between $501,860 and $927,350 to build.

Darwin, Northern Territory, Australia. Picture: Getty

With the latest PropTrack Home Price Index data revealing the median Darwin house price increased 4.08% year-on-year in April to $531,000, embarking on a new home build in the capital could prove attractive given the government home building incentives on offer.

Cost of building a house in Darwin

One of the biggest factors determining the cost of building a new home in Darwin is how many bedrooms incorporated into the floorplan.

This is because the construction of a home is priced on a per square metre basis and the more bedrooms a home has, the bigger the floorplan.

However, the price per square metre will be quite broad, particularly if your home design is a project home, or a custom designed residence, or drawn up by an architect.

A two bedroom house build, with a floorplan spanning 120sqm, will cost $258,000 to $480,000.

However, it is rare new houses in Darwin are this size, it is more likely to see a two bedroom villa or townhouse.

A three bedroom new home build in Darwin will cost between $376,250 and $700,000, assuming an internal size of 175sqm.

A four bedroom house build will cost anywhere from $559,000 to $1,040,000.

This is based on a floorplan of 260sqm, which is considered a typical size for a home with four-bedrooms and two bathrooms in the capital.

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

An additional $800 per square metre to build a two-storey home in Darwin is to be expected in comparison to the price of building a single storey home of the same size.

The increase in price is due to two main factors  - the complexity of the build and the additional; structural costs required.

An additional level entails the implementation of more complex construction methods such as scaffolding, in addition to more materials, tradesmen and safety measures.

The build process of a two storey home necessitates structural elements not necessary for a single storey home build.

Stronger structural supports, further load-bearing walls, deeper foundations to support the extra storey, all increase the final build cost.

Hence, the extra structural requirements of a two storey build will see somewhere between 10% and 20% per square metre to the total cost of building a two-storey house when comparted to a one level home.

Other factors that impact the cost of building a home in Darwin

There are a variety factors that can impact the cost of a Darwin home build and need to be carefully considered.

The finishes and materials selected

The choice of bricks, various building materials, and fittings to the kitchen and bathrooms, can see huge variations in the final costs of building a new home.

Weather delays

Weather and other unforeseen delays can unfortunately really hinder the timeframe of a new home build, and with a tropical climate like Darwin this is something to bear in mind.

Storms and heavy rain can thwart scheduling, causing problems in coordinating trades efficiently.

The site you build on

Sloping blocks with limited access, or a site that is tight will add extra costs to the build as this can hinder getting heavy machinery onto the site, which will require other methods for tasks like excavation.

Soil type can also play a role in higher build costs if, for example, the home is being built on sand which calls for deeper and more expensive foundations.

Extra expenses outside of the build

There are many extra costs that come in addition to the home build itself.

This includes exterior lighting, a swimming pool, landscaping, paving, fencing, security and gates.

Government incentives and grants for new homes

There are several different grants, concessions and incentives for building a new home in Darwin.

First Home Owner Grant

A $50,000 grant is available to eligible first home buyers who buy an eligible house and land package in Darwin. This is the most generous first home buyer scheme available in Australia.

House and Land Package Exemption (HLPE)

Eligible house and land packages are not required to pay stamp duty.

This exemption applies regardless of whether the build or purchase is a first home or not.

HomeBuild Access

This low deposit home loan is 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

For those building a house, these thresholds apply to the total cost of the land and home.

HomeBuilder grant

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 June 30, 2025.