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

A standard Perth house would therefore cost between $513,360 and $993,240 to build, based on the WA state-wide average new house size of 223.2sqm. 

Given the citywide Perth median home price in August 2024 was $751,000, according to PropTrack data (including both houses and apartments), building a new house can be an attractive option in the western capital.  

If you’re thinking of building a home in Perth, we explore how the cost breaks down, and list the factors you’ll need to consider when calculating the final price. 

Factors affecting how much it costs to build a house in Perth – number of bedrooms

The most important factor affecting how much it costs to build a home in Perth is the number of bedrooms.

That’s simply because, while there is an average cost for building a home, most construction jobs are costed on a “per square metre” basis. 

This means bigger homes with more bedrooms tend to cost more to build.  

Even then, there can be a wide variation in the cost per square metre to build, depending on whether you choose a project home, a fully architect-designed residence or something in between.

It costs between $513,360 and $993,240 to build a new house in the capital of Western Australia. Picture: Getty

Cost of building a 2-bedroom house in Perth

It costs $276,000 to $534,000 to build a two-bedroom house in Perth. 

This assumes a home of 120sqm. 

It’s worth noting that few new houses in Perth tend to be just two bedrooms unless they are villas or townhouses, or custom designs built for someone’s specific circumstances. 

Cost of building a 3-bedroom house in Perth

It costs between $402,500 and $778,750 to build a standard three-bedroom house in Perth of 175sqm.

This is smaller than the homes most people in WA choose to build, given the average new home size in the state is 223.2sqm.

Cost of building a 4-bedroom house in Perth

It costs between $598,000 to $1,157,000 to build a four-bedroom house in Perth. 

This assumes a home of 260sqm, which would be typical of a four-bedroom home with two bathrooms (or even a four-bedroom house with two bathrooms and an ensuite).

Cost of building a 5-bedroom house in Perth

It costs anywhere from $690,000 to $1,335,000 to build a standard five-bedroom home of 300sqm.

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.

This turnkey house and land package in the semi-rural Perth suburb of Baldivis is on the market for $799,888. Picture: realestate.com.au

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

It costs up to $800 per square metre extra to build a two-storey home in Perth, compared with a single storey home of the same total floor area. 

The increased cost of building two storey houses vs one storey houses often comes down to these two factors:  

1. Two storey houses are more complex to build 

More complex construction methods are often required to build a home that is more than one storey high. 

This might include the use of such things as scaffolding, which can cost a lot to hire. It may also require more time, materials, skilled labour and safety measures.

2. Two storey houses require additional structural costs

A single-storey house requires a larger foundation and roof area, which adds to costs.

However, for two storey or multi storey houses, the cost of structural elements needs to be factored in. This often includes stronger structural supports, additional load-bearing walls, and deeper foundations to support.

These additional measures and complexities typically add between 10% and 20% to the construction cost per square metre of a two storey house vs a one storey house.

Land and this design for a two storey house in the Perth suburb of Mosman Park has been listed with a full inclusion price of $1.98 million. Picture: realestate.com.au

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

It is often cheaper to build a house than buy one in Perth, which is why it has become such a popular option. 
You can calculate whether it is cheaper to buy or build a house in your circumstances by adding together the following costs:

The value of the land

The average cost of vacant land in Perth is $245,250, according to one report. This makes it Australia’s most affordable capital city for land. That said, you may have to pay a lot more if you want to build in an established suburb close to the city centre. 

The cost of building

The cost of building a home can change significantly. Factors to take into account include the size of the property and whether you opt for a project or custom-built home. 

Transfer duty

Transfer duty in WA (also known as stamp duty) will be calculated on the value of the property or land you buy. This often means buying land and then building can lead to saving. 

Transfer duty concessions

If you’re buying your first home, the First Home Owner Rate of Duty means eligible buyers don’t pay transfer duty at all on land valued up to $300,000 and then receive a discounted rate for land valued between $300,000 and $400,000. 

First Home Owner Grant

The WA First Home Owner Grant provides $10,000 to eligible first home buyers who build a new home. The current threshold is $750,000 total value (i.e. for the build and land) for homes south of the 26th parallel (including Perth). However, if you build north of the 26th parallel, the threshold increases to $1 million. 
Other costs

Common other costs associated with building a home in Perth 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. 

This turnkey house and land package in the north east suburb of The Vines is on the market for $843,486. Picture: realestate.com.au

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

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

1. The size of home you build

The average size of a new property in WA is 223.2sqm. That’s 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. These factors naturally lead to higher costs.

2. The materials you use

Not all building materials cost the same. Also, the variable cost of kitchen and bathroom fittings can have a significant impact on the price it ultimately costs to build a home.

3. The site you’re building on

Flat land with easy access usually costs a lot less to build on than sloping blocks with limited access. When a builder can’t get heavy machinery onto the site, it can really affect how much they need to charge. Other factors, such as the type of soil, zoning and planning restrictions can affect the ultimate cost too. 

4. Any delays

Weather and other delays can have a real impact on how a building project progresses, as well as the costs. That’s because they can affect scheduling, making it hard to coordinate trades in the most efficient way.

5. How complex your design is

The simpler the design, usually the cheaper to build. Project homes are often also much cheaper because the builders get economies of scale, ordering materials in bulk and carrying out the same build multiple times.

6. Costs outside of the build itself

When you build a home you’ll usually want to also include other features such as landscaping. If you have a swimming pool, you’ll also need to factor this in, as well as fencing costs. Then there are local council costs for development approval. These can sometimes add tens of thousands of dollars to the price of a build.

FAQs about building a house in Perth

Here are some of the most common questions people have about building a house in Perth and Western Australia.

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

The cheapest way to build a new house in Perth is usually to go through a project home or “volume” builder. That’s because these builders get economies of scale. However, to get the cheapest price from a project builder, your block usually needs to be suitable. Any modifications, i.e. due to uneven or irregular-sized land or poor access, could add to the cost of the build.

Do I need a contingency buffer? How much should it be?

Yes. You should set aside between 5% and 10% of the build price as a contingency buffer. Generally, if your build is complex (i.e. if you have an architect-designed home), it’s more likely something will go wrong. In that case, you should err at the higher end of the scale.

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

It usually takes between four and 12 months to build a house in Perth. This period only starts once you’ve bought the land and locked in your plans.

What government grants are available for new homes in Perth?

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

First Home Owner Grant (WA)

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

First Home Owner Rate of Duty

First-home owners pay no stamp duty on land valued up to $300,000, and a reduced rate on land valued between $300,000 and $400,000. 

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.  While it doesn’t apply to contracts entered in after then, the deadline for submitting a claim for the grant has been extended to 30 June 2025.

This article first appeared on realestate.com.au and has been republished with permission.