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

Based on Australian Bureau of Statistics data - which reports the average Perth house size is 214sqm - building a new home could cost anywhere from $524,300 to $1,016,500.

With PropTrack’s Home Price Index reporting that Perth’s median house price increased 11.5% in March 2025 to $770,000, embarking on a new house build could seem an appealing option for Perth property buyers.

Perth, Western Australia, Australia. Picture: Getty

Cost of building a house in Perth

The amount of bedrooms incorporated into your home design is the biggest factor in determining the cost of a new home build in Perth because prices are based on a per square metre basis.

Hence, the more bedrooms the greater the final cost will be.

How much does it cost to build a house 9n Perth?

A two-bedroom house build in Perth is typically seen in a town house, villa or unit, and that will cost $276,000 to $534,000 to build, with a floorplan of 120sqm.

A three bedroom home with a floorplan of 175sqm in Perth will cost between $402,500 and $778,750 to build.

Building a four bedroom Perth home will cost between $598,000 to $1,157,000 to build. This is based on a floorplan of 260sqm.

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

Embarking on a two-storey home build in Perth costs up to $800 per square metre more in comparison to a single level with the same amount of floor space.

The increased cost of a two storey house build is due to the complexity of the build process, and the additional structural costs.

Hiring scaffolding, additional build time, materials, skilled labour and safety measures are among the extra costs.

A two storey build requires stronger structural supports, additional load-bearing walls, and deeper foundations.

These requirements can add up to 10% to 20% to the construction cost per square metre of a two storey house when compared to a one storey house.

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

There are many factors to consider which impact the total cost of a new home in Perth.

The price of land

Perth land prices are no longer the nation’s most affordable, with the average price now $329,000 according to one repoint.

Plunkett Homes operations manager Reece Martin said Perth’s land values were continuing to rise, but there were still affordable options in the outer suburbs, where the infrastructure is slightly less established.

Unforeseen delays

Perth’s construction industry is continuing to face an ongoing shortage of skilled tradespeople, including bricklayers, carpenters, and electricians which can see building timelines blow out.

Wet weather can also hinder a building timeline, as any delays impact scheduling which make organising trades efficiently difficult.

The build site

The type of soil, zoning regulations, sloping blocks with difficult access can all affect the cost of a house build.

If a builder finds getting heavy machinery onto the site challenging, it can see the price they charge increase.

Material costs

Mr Martin said the price of key materials such as bricks, concrete, steel, and timber will impact the cost of a built.

“Prices have risen in recent years, due to global supply chain disruptions, freight costs, and high local demand,” he said.

Government regulations

Government regulations, including the National Construction Code (NCC) and local council requirements, impose strict standards on new homes, which can impact costs, Mr Martin said.

“The upside to this, however, is that you get a home that’s extremely energy efficient, solidly built, and bushfire safe,” he said.

Customising a home design

Making changes to a builder’s standard design to increase the size of rooms or upgrade specifications will impact the cost of your new home.

Adding luxury flooring, extra high-spec cabinetry to a kitchen or bathroom, or more expensive applinaces will all add to the final costs.

Extra expenses outside of building costs

Building a new home does not encompass the costs of adding a lawn and landscaping, fencing, a swimming pool, security or exterior lighting.

Government incentives and grants for new homes

Here is an outline of the government incentives and grants on offer if you are building a new home in Perth:

First Home Owner Grant

This one off payment provides $10,000 to eligible first-home buyers who build a new home in Perth valued up to $750,000.

Stamp duty concession

First-home owners pay no stamp duty on land valued up to $350,000, and a reduced rate on land valued between $350,000 and $450,000.

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 June 30 2025.