The most straightforward answer to this question is yes – hiring custom home builders is usually more expensive than buying an existing house. But despite the cost, custom homes are still popular in Australia and for many good reasons. In today’s article, you will learn everything you need to know about custom homes. How much do they cost? Why are they popular? Are custom homes worth it? Let’s find out.
Cost of Custom Homes in Australia
The cost of custom homes will depend on several factors, including size, materials and overall design. Location and the reputation of custom builders or the construction company can also impact the overall cost of your custom home project. But on average, it may cost around AU$ 1,300 per square meter. You can also refer to the price guide below to give you more ideas:
| Cities | Avg. cost per sq m | Total Avg. Cost |
| Melbourne | $1,750 to $3,500 | $435,000 |
| Perth | $1,500 to $3,500 | $350,000 |
| Sydney | $1,800 to $5,500 | $300,000 |
| Hobart | $1,500 to $3,000 | $360,000 |
| Adelaide | $1,500 to $3,500 | $350,000 |
| Brisbane | $2,000 to $4,000 | $360,000 |
| Darwin | $1,900 to $3,5000 | $355,000 |
Sources: How much does it cost to build a house in 2023 by realestate.com.au and Portrait Custom Homes (2021 data).
Key Factors that Affect the Overall Cost of Custom Homes
As mentioned earlier, there are several factors that can affect the overall cost of your custom home project. A reputable custom home builder should provide you with a detailed breakdown of their initial quotation. Let’s dive deeper into these factors:
- Site Requirements
The site requirements can affect the overall cost of your custom home project. Building companies usually send an expert to evaluate the location of the site project. Some factors to consider include topography, geological conditions and required utilities. For instance, sloped or steeped terrains require more tasks and equipment to build stronger foundations, which can significantly increase the cost of your project.
- Size or Dimensions
Like any other construction project, size is a big price indicator–the bigger the total floor area of the house, the more expensive it is. Construction companies also need to evaluate the number of floors, walls and ceiling height. The average total cost of construction for an additional storey can range from $90,000 to $150,000.
Another thing to consider is the shape of the exterior. More often than not, a custom floor plan is more expensive than a square floor plan (with 4 corners).
- Complexity of the Project
The best thing about custom homes is you have more freedom with the overall style or your desired output. However, keep in mind that more complex projects require more funds, primarily because of the workmanship and materials required.
- Amenities
Any add-ons to your custom home can increase its total cost. However, some add-ons are also good future investments, such as smart home security, thermal walls and solar panels.
- Materials
The materials required for your custom home project can be a big factor. However, it’s also important to choose quality materials. Reputable custom home builders should help determine the best materials that suit your budget and specific needs.
- Labour
Nearly 40 to 60% of the total cost of a custom home project goes to labour expenses. Professional fees may vary depending on project requirements, including size and structural complexity. Other factors that affect labour costs include living costs at the location and the required manpower to meet the deadline.
Advantages of Custom Homes: Why Custom Homes Are Better than Buying an Existing House?
As mentioned earlier, custom homes are growing in popularity these days. Here are the reasons:
- Complete Customisation
One reason many people prefer hiring custom home builders is they can completely customise their homes. This includes flooring, interior and exterior layout, overall design and just about everything! There are almost no limitations at all since you’re building your home from scratch.
- Improved Functionality
Another advantage of custom homes is you can create a more flexible floor plan that can match your lifestyle and design preferences. With existing floor plans or properties, you are often limited to overall layout and design. Custom homes allow you to maximise functionality in every inch of your future living space.
- Quality Workmanship
As long as you hire reputable construction or building companies, you can expect quality output. The best thing about working with custom home builders is you can keep track of their progress from start to finish.
- Perfectly Personalised
Custom homes are all about personal stylistic preferences, where you can build exactly what you want–from roofing to wall covers and flooring to layout and other amenities.
- Cost Control
Yes, building custom homes is usually more expensive than buying an existing property. But since you’re starting the construction project from scratch, you can somehow control your expenses. For example, you can choose more affordable materials to reduce the total expenses. At Distinguished Homes, our engineers help our clients find affordable but quality materials to reduce the overall costs of your project.
How To Save Money on Custom Build Homes
The best way to save money on your custom home project is to hire a reputable custom home builder. Working with inexperienced contractors may only give you problems in the future. It doesn’t guarantee results and often ends up with more rework or costly repairs. In addition to that, here are other ways you can do to reduce costs:
- Find a Way to Reduce Square footage
Reducing the square footage of your custom home can significantly reduce the total cost of your project. One effective strategy for this is to opt for a two-storey design rather than building an outward floor plan layout. Try considering small and cozy for your home.
- Choose a Simple but Functional Roofing System
Roofing is one of the most expensive elements in any home construction project. Ask your builder about the most practical option you can use for your custom home project. For instance, roofing systems with single ridgelines and shallow pitches are more affordable and work effectively.
- Avoid Making Changes with Your Project
Change orders or last-minute changes can quickly take a toll on your budget. That’s why it’s important to briefly discuss all your goals and concerns during the pre-planning stage.
Why settle for inexperienced contractors if you can work with the best? Build the home of your dreams with the help of our team! Distinguished Homes is a local custom home builder in Perth, with years of industry experience. Our proven track record for building luxury homes speaks volumes, and we are always ready to help you every step of the way. Call us today at (08) 9209 3141 or click here to get a free quote.