Building your own home is a major undertaking, both emotionally and financially.
You are excited about choosing your floor plan, fixtures and finishes, but suddenly, your budget is blown. The cash is running out quicker than expected and you have absolutely no idea where it all going.
That’s why, you should have an idea about part of your build likely to be the most expensive. So, you can plan smartly and avoid budget surprises.
As per our experience at PDCD Homes, the biggest expense tends to be the structural and shell phase. It includes the foundations, framing, roof and external walls. Yup, you heard it right! It isn’t luxury finishes or lavish fixtures but the basic structure itself.
The reason for expense? Because that’s where the bulk of material, labour and engineering effort lies. As custom home builders Perth, we’ve seen the building’s shell plus major system installations account for 50-70 % of construction costs.
Let’s explain that in detail and guide you on numbers behind building a new house.
How Much Can Building a New House Cost You?
For new homes in Australia in 2025, you’ll find average construction costs (excluding land and major site preparation) ranging from about A$1,600/m² to over A$3,900/m², depending on region, design and finish level.
In the Perth area, lower-end builds might sit closer to A$1,700-2,500/m² while higher-end or two-storey custom builds push toward A$3,000/m² and above. However, it varies with suburb rates, design decisions and the other specification.
As per market rates of 2025:
| Project home with modest finishes | 1,300-1,900AUD/m² |
| Mid-range home | 1,900-2,700AUD/m² |
| Custom or luxury home | 3,000-4,300AUD/m² (or more) |
For example, if you build a 200 m² home in Perth at A$2,500/m², your construction cost would be around A$500,000, before land, site works, driveway, landscaping etc.
Because structural costs are heavy and finish upgrades escalate sharply, we guide our clients to focus first on the “big ticket” items, then move toward finish choices. Let’s discuss the cost of each part in detail to help you make a realistic budget.
Cost Breakdown for Each Part of the House
Let’s explain the major cost categories and highlight the usually most expensive part of building a new house. So, you can have an idea where your money is likely to go.
✓ Land Purchase & Site Preparation
Certainly, one of the largest overall costs is the land itself. But for the purpose of “building a new house” we treat it separately because it’s not part of the construction cost. Once you have the land, site preparation comes in:
- Clearing existing structures or vegetation.
- Demolition if there’s an older house to remove.
- Soil testing, excavation or fill for foundations (especially if sloping or rocky).
- Connecting utilities (water, sewer, power, gas) and access roads.
All of these add cost and risk. As trusted new home builders Perth, we provide demolition and subdivision support, so you can stay well-covered from the start.
✓ Foundation of the House
The foundation is what the entire home sits on. Costs depend on ground conditions, home type (single vs double storey), the choice of slab-on-ground or pier system, and how much structural engineering is required.
If the block has difficult soil or steep slope, foundation costs can jump significantly. We treat as most crucial part of building a new house, because all other details depend on it. If you’ve done this phase well, you can avoid several future problems.
✓ Building the Shell (Walls, Roof & Frame)
Yup, it is where the biggest chunk of construction cost lies. Framing, roofing, external cladding or brickwork, windows and doors (the external envelope) consume large amounts of materials and labour. So, keep a significant amount on side for it.
Good quality materials, complex roof designs, double storeys, and high ceilings can further push up the cost. The expense is necessary because you are creating the weather-tight shell and structural integrity of the home.
✓ Major Systems Installation
Once your shell is built, you’ll bring in plumbing, electrical wiring, HVAC (air-conditioning, ventilation), gas, insulation and perhaps solar systems. These major systems are undervalued when budgeting but are critical and costly.
Poorly planned systems can lead to cost blow-outs. As custom home builders Perth, we integrate system planning early so you avoid surprises later.
✓ Windows and Doors
High-quality windows and doors give you security, energy efficiency and resale value.
In Perth’s climate, good insulation, double glazing, shading and weather-protection, all play a role. Premium doors or large sliding/folding glass walls can add to cost. While not always the largest single line item, upgrades here are very visible and can inflate your budget.
✓ Interior Finishes & Accessories
Now you get into the “look and feel” of your home. E.g. flooring, cabinetry, tiles, kitchen benches, bathroom fittings, paint, lighting, fixtures. This is where we usually see budgets getting blown, because of luxury finishes, custom joinery or imported materials.
Although the shell cost the most, but that expense is unavoidable. As for this part, you can plan wisely and save some big bucks. Visit display homes Perth for smart ideas.
Hidden Price Tags: What People Ignore While Budgeting?
Even with a solid budget, many homeowners overlook some cost areas. These “hidden costs” can push your project beyond what you expected, so keep a check on them.
They include:
- Council fees, permits, inspections and planning approvals.
- Infrastructure charges, developer levies or subdivision setup costs (especially in new estates).
- Site access issues: steep slopes, rock excavations, restricted access for equipment.
- Driveway, fencing, landscaping, outdoor lighting, patios.
- Design changes and upgrades mid-build, each change can add time and cost.
- Contingency or escalation allowances for materials/labour inflation (relevant in 2025).
It’s even reported that regulatory costs, infrastructure & “red-tape” takes 30-40 % of a home & land package cost in Perth. So, you can’t ignore this phase. At PDCD Homes, we keep transparency and guide you along the way so you won’t caught off guard.
How to Budget Smartly for Building a House? Tips by Home Builders Perth
Here are some actionable tips from us as experienced Perth home builders. Note and remember them so, you can budget more effectively.
| Budgeting Tip | Description |
| Start with realistic per-m² budgets | Use local Perth benchmarks (e.g., A$1,800-3,000/m²) and think about your specification level. |
| Choose your build method early | Project-home style vs fully custom. Custom builds give flexibility but cost more (not if you plan smartly). |
| Lock in design and selections early | The later you change, the more cost escalations. |
| Use a fixed-price contract if possible | It will protect you against price increases in materials or labour. |
| Prioritise structural and system components | Get your foundation, shell and major systems right before focusing on luxury finishes. |
| Include a contingency (10-15% or more) | Material prices and labour rates are volatile in 2025. |
| Understand site conditions | Build on a ‘flat, good soil’ block will cost less than a difficult site with slope or rock. |
| Work with an experienced builder | As one of the best home builders Perth, we bring local knowledge, trusted subcontractors and proven processes. |
| Monitor allowances and upgrades | Many “optional extras” eat into budgets. Discuss openly what is included in your contract. |
That’s how you can build a house smartly, without going bankrupt.
Do Costs Also Differ Between Perth Builders?
When you compare quotes from various new home builders in Perth, you’ll notice variations in how costs are presented.
Some include siteworks, some don’t. Some include landscaping and others treat it as a variation. We at PDCD Homes focus on clarity and transparency throughout the building process. We explain every line item, show what’s included, and flag what is not.
That way you can make informed decisions rather than being blindsided mid-build.
Want to Build Smart and Efficient Home?
Choose PDCD Homes As Your Custom Home Builders
We know how to turn land across Perth into beautiful and functional homes.
So, if you’re planning your first home, a luxury custom build, or an investment property, come to us. Our team can handle everything from design through to handover, and you won’t have to face sudden surprises.
As one of the leading luxury home builders Perth, we deliver quality materials, expert planning, transparent costs and reliable timelines.
to find out how we can help you build your dream home.
