Custom Home vs Display Home: What’s the Difference & Which One to Choose in Perth?

Struggling to decide between building your dream custom home from scratch or grabbing a ready-made display home in Perth?

Just suppose: you want a home perfectly tailored for your family’s needs. But you also have a deadline and budget to meet.

On one hand, a custom home means ultimate control and uniqueness. But it can feel overwhelming. On the other hand, a display home promises move-in convenience and high-end finishes, but you give up some flexibility.

So, whether you’re a first-home buyer, an investor, a growing family or downsizer, this guide will break down the real differences. We’ll cover everything: clear definitions, pros & cons, costs and timelines, case studies, and a handy decision checklist.

Stick with us to know exactly which path suits you in Perth’s housing market.

Understanding Custom Homes and Display Homes in Perth

Understanding these basics is key. A custom home lets you start with a blank slate, whereas a display home is a finished example you can walk through and buy. Let’s get into the details:

What is a Custom Home?

custom home is built from the ground up to your exact specifications. You work one-on-one with a designer or custom home builder to choose the floor plan, materials, finishes and features.

For example, a young couple might commission a 4-bedroom house with a unique open-plan layout, eco-friendly materials and a home theatre. Something you simply can’t order from a catalog. You have the freedom to pick every detail. It means more decisions to make.

What is a Display Home?

display home (or spec home) is a fully built house by a volume builder, intended to showcase their design quality and inclusions.

Builders construct these homes in new estates so buyers can walk through and get inspired. If you buy one, you’re essentially purchasing that move-in-ready house. These homes come with all the high-end upgrades the builder chose for display. For example, stainless appliances, stone benchtops, designer lighting; many of which aren’t included in a standard contract.

For more details, read our display home guide which covers the essentials and the perks of touring them firsthand.

Custom Home vs. Display Home | Pros & Cons Explained

Both custom and display homes have strong benefits and some trade-offs. Let’s break them down:

Benefits of Custom Homes Over Display Homes

  • One-of-a-Kind Design

Your home is truly unique. From architectural style to interior layout, every aspect reflects your family’s tastes. Love the idea of a bold Art Deco façade or a wrap-around deck? With a custom build, that vision is yours.

  • Tailored Layout, Finishes & Inclusions

Choose exactly how many rooms you need, where they go, and how they flow. Want a hidden pantry? Need a double-height living room or an extra-wide garage? You can have it. You’ll also pick every finish; the flooring, cabinetry, fixtures and paint. So, nothing is out of line with your style.

  • Freedom to Design Every Detail

There are no limitations. If you want a sunken lounge, vaulted ceilings, or a spiral staircase, you decide. Innovative features like skylights, built-in furniture or advanced home automation can be designed from the start. This freedom means no “we can’t do that” surprises.

  • Exceptional Quality and Workmanship

Often, custom homes can be built with higher standards because you choose premium materials and engage builders with strong reputations like award-winning PDCD Homes. Because it’s a bespoke project, builders may take extra care with craftsmanship and supervision.

  • Maximised Functionality

Every corner serves your needs. You can integrate clever storage solutions, a mudroom for pets, or a home office exactly where you want it. For example, families love having the laundry near the bedrooms, or a kitchenette near the pool. Things that cookie-cutter designs might overlook.

  • Your Preferred Location & Orientation

Pick your perfect block. Want sunset views from your living room? Need passive solar design or a flat site for easy mobility? Custom builds let you adapt to your exact lot. In Perth’s climate, you can optimise cross-ventilation and solar gains by orienting glass to the north and shading from the summer sun. There are the choices standard display designs can’t offer.

  • Energy Efficiency & Innovation

It’s easier to include eco-features like solar panels, rainwater tanks, or high-grade insulation tailored to your needs. Since every watt and drop counts, a custom home often ends up more efficient and sustainable than a one-size-fits-all model.

  • Higher Resale Value & Long-Term Satisfaction

A well-done custom home can command a premium resale price, especially if it caters to local demand. Buyers often appreciate the thoughtful design and quality finishes. And on a personal level, there’s huge satisfaction in living in your home, designed exactly for your lifestyle.

  • Control Over Budget

It may sound counter-intuitive, but you can keep closer tabs on costs because everything is on the table from day one. You and your builder track choices against budget. For example, adjusting finishes to manage costs.

Our budget planning advice emphasises on setting allowances and sticking to them means no nasty surprises.

Downsides of Custom Homes in Perth

  • Higher upfront costs & more decisions: All this customisation comes at a price. You’ll make hundreds of decisions, from faucets to floor tiles, which some find stressful. Each upgrade or unique feature adds to the budget.
  • Longer timelines: Designing and approvals take time. You may spend 3–6 months on plans and council permits before a single brick is laid. Then construction can be 8–12 months (or more). Custom homes building often take at least 12–18 months in total.
  • Need for strong project management: Since every detail is unique, staying on schedule requires communication. You’ll meet with designers and the builder regularly. If you’re busy or not comfortable juggling choices, it can feel like a lot of responsibility.

PDCD Homes, however, alleviates this with dedicated project managers and 24/7 support, so clients aren’t left in the dark.

Benefits of Display Homes Over Custom Homes

  • Move-in-Ready Convenience:

The biggest advantage of a display home is speed and simplicity. The home is already built and fully fitted, so you avoid the lengthy building journey. You can literally move in within weeks after purchase. Busy families or career-focused professionals love this. No council approvals, no construction delays, no endless material selections.

  • Layout Certainty – See Before You Buy:

Display homes let you walk through a finished layout. What you see is what you get. This means far less guessing: you know exactly how the bedrooms flow, how the kitchen functions, how big the living room feels.

We always recommend touring modern display homes Perth to gather inspiration and confidence in your choices.

  • Lower Design Effort:

You don’t need to spend hours on design. The builder has done it for you. All the premium fixtures and fittings are already in place; stainless steel ovens, designer lighting, stone benchtops, polished concrete or timber floors, quality tapware, beautiful landscaping. These are the kind of extras you’d have to add (and pay for) in a new build. With a display home, they’re included.

  • Cheaper Base Price (sometimes):

Volume builders can price display models competitively. By building many houses in one development, they save on bulk materials and labour. This efficiency can translate to a lower base cost per square metre. For example, in Perth you might find single-storey display homes starting from the mid $400k’s (house only) before land. Of course, final cost depends on lot and location.

  • Leaseback / Guaranteed Short-Term Rental Return:

Investors take note. PDCD Homes and many builders offer leaseback deals. You buy the display home and then rent it back to the builder for, say, 1–2 years while it’s still being shown. This means you start earning guaranteed rental income immediately, often at a better rate than open-market rent.

  • Tax & Depreciation Benefits:

Display homes come with all the appliances and fixtures already installed. This opens up lucrative tax-deductible depreciation. In other words, many of the items (kitchen appliances, blinds, air conditioners, etc.) can be depreciated at tax time.

  • Brand-New Community:

Display homes are typically in fresh, well-planned neighbourhoods. Buying one often means you’re on a new street with other quality-built houses. These communities have attractive streetscapes, new parks, and modern amenities.

  • Predictable Pricing:

Builders of display homes usually use a transparent contract (especially in WA under HIA/Master Builder standards). You know exactly what is and isn’t included. There are standardised warranties and handover procedures, so you won’t be left wondering “do I get that tile?” or “what’s covered after handover?”

Downsides of Display Homes

  • Less flexibility & upgrades cost: By definition, a display home’s floor plan and finishes are already set. You can’t change the location of walls or window placements. If you want to tweak anything, it usually means paying extra.
  • Display vs base confusion: It’s easy to fall for a pretty display and forget those extra items aren’t “free.” Always double-check the builder’s inclusion list. If you want everything exactly as shown, budget for it as the base price is often lower than the fully upgraded walkthrough example.
  • Location constraints: You’re limited to where the display home is built. Maybe it’s on a corner lot, or a wide verge, that makes the facade look great. But maybe that lot orientation isn’t your favourite or the block is smaller.
  • Premiere but pre-loved: A display home has often been open to the public for months or even years. That means minor wear-and-tear is possible. More importantly, warranties start from the day the home was completed. You might have a shorter effective warranty period on appliances or finishes than if you built new from scratch.
  • Higher stamp duty: In WA, buying an existing home means paying stamp duty on the total purchase price (land + home). When you do a custom build, technically you are “buying land and then building”, so duty is only on the land.
  • Design compromises: The display’s design was meant to appeal to many as a showroom. It might not match your exact lifestyle. Perhaps the furniture layout doesn’t suit your furniture, or that extra window overlooks something you’d rather not see. If customisation is a must for you, a display home can feel a bit restrictive. Although you can always renovate later.

Key Differences Between Custom Home and Display Home

AspectCustom HomeDisplay Home
Design FlexibilityFully flexible; tailor every detail, add rooms or special features.Pre-set design; built to builder’s plan. Major changes usually cost extra.
PersonalisationComplete personalisation of layout, finishes and features.Limited; what you see is largely what you get.
Move-in TimelineLonger (mostly 12–18 months from concept to keys).Much faster; if finished, move in after purchase (weeks-months).
Cost StructureBase cost + your choices. Can end up higher, depending on upgrades.Base price often includes many premium fittings. Appears high upfront but includes extras.
LocationYou choose the blockLocated in the estate and lot where the display was built.
InclusionsYou define inclusions; base spec typically more basic (to choose yourself).Comes with high-end inclusions already installed (designer kitchen, landscaping, etc.).
Warranty & HandoverStandard new home warranties apply from handover.Also covered by new-home warranties, but note they began earlier. Builder usually handles handover smoothly.
Ideal ForBuyers who want a unique home and control every detail (often families, custom projects).Buyers seeking convenience or investors looking for ready-to-go rentals.

Custom Homes vs. Display Homes | Cost Differences

When comparing costs, remember every home can vary. But in Perth’s current market:

  • Custom Home Costs in Perth: A broad rule in Perth is about $2,300–$4,400 per square metre for a quality build (as of 2024).

According to local data, this means a 3-bedroom home (175 m²) might start around $400k–$780k, while a 4-bedroom (260 m²) could be $600k–$1.16M, depending on specs. These figures include basic construction plus standard finishes.

  • Display Home Costs in Perth: A display home often comes fully finished. Builders usually price these to include all the upgrades. Advertised prices might look higher, for example.

Display house-and-land packages in Perth commonly start in the mid-$600k’s to $700k for a single-storey home (land included). Two-storey displays might start around $850k–$900k inclusive.

The key is: don’t compare base-to-finished prices. A display home’s $800k tag already covers extras you’d pay more for in a custom build.

Sample Budget Table:

ScenarioHouse Price (incl. upgrades)Land (approx.)Total
Display, 4-bed single-story$600,000$250,000$850,000
Custom, 4-bed single-story$550,000 (basic spec)$250,000$800,000+ (with upgrades)
Display, 5-bed double-story$900,000$250,000$1,150,000
Custom, 5-bed double-story$800,000 (basic)$300,000$1,100,000+

(Note: These are rough examples. Actual prices vary by suburb and builder.)

Build vs Buy Timelines: How long does each option take in Perth?

  • Custom Home Timeline (longer, but tailored)

A true custom build typically runs longer: 1–3 months for design and drafts, 1–2 months for council approvals (varies by council), then 8–12 months construction for an average home.

Expect 12–18 months from concept to keys (up to 24 months for complex/high-end projects).

  • Display Home Timeline (quick move-in)

Buying an existing display home is fast. Once finance is approved and contracts are signed, settlement is usually 6–8 weeks, then you can move in almost immediately.
If the display is still under construction (e.g., for leaseback), treat it like a new build — 6–12 months depending on the builder’s schedule and any custom add-ons.

Buyer Stories: Real Case Studies

  • Case Study A — The Display Home Buyer

Meet the Browns – first-time investors who wanted to enter the property market with minimal headache. They chose a newly-built PDCD display home in Eglinton (Perth’s north), a 4-bedroom single-storey in a boutique estate.

Why they chose display: Move-in ready, high-end upgrades included, and a 2-year leaseback at 5.5% return.

Outcome: Fast 5-week settlement and immediate rental income. Stamp duty and rented styling items were the main surprises.

Lessons Learned: Always confirm which items are included vs. staged; budget for stamp duty; check warranty start dates.

Client review: “Nearly painless, instant rental income and low hassle.”

  • Case Study B — Custom Home Build

Meet the Thompsons – a growing family who needed a tailored space. They owned a 600 m² lot in the Perth hills and engaged PDCD to design a 5-bedroom, 3-bath double-storey home that took advantage of the views.

Why custom: Needed a kids’ wing, home office and site-specific design to capture sunsets.

Outcome: Design & approvals 5 months; construction 11 months; moved in 16 months. Final cost rose due to upgrades and extra site works.

Lessons Learned: Plan early for site reports and delays; prioritise must-haves to control costs; maintain regular meetings with your builder.

Client review: “It wasn’t cheap or fast, but PDCD delivered exactly what we wanted.”

So, Which One is Right for You: Custom Home or Display Home?

Decision Checklist:

  • “I want a home ready ASAP with premium finishes – I’m leaning towards a display home.”
  • “I have very specific needs or a dream design – custom home might suit me.”
  • “I’m an investor looking for quick rental income – display home (with leaseback) could be ideal.”
  • “I have unique land or require special features (like an accessible layout) – custom is better.”
  • “I’m on a tight timeline and budget – a display home may give more certainty.”
  • “I love design details and can wait – custom gives the best personalization.”

Use the above as a quick guide. In reality, many buyers find a blend: you might pick a display floorplan and do a smaller custom tweak, or buy a display home and renovate later. The key is weighing the pros/cons above against your lifestyle, budget and patience level.

Still undecided? Let us help you; we do both.

Contact PDCD Homes to Buy Modern Display Home or Build Luxury Custom Home in Perth

We’re a Master Builders and HIA member with 24/7 support, 5-star reviews and a track record of on-time delivery. We’re proud to be among the best custom home builders in Perth, known for quality materials and transparent communication.

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