Cost of Building a New Home in Victoria

Building a new home in Victoria is an exciting but often complex process, with costs being a major factor to consider. Whether you’re constructing a standalone house, townhouse, or apartment, understanding the costs involved will help you budget effectively and make informed decisions. 

From the type of home you choose to build to the specifics of your block and the materials you select, various factors influence the overall cost. In this article, we’ll explore the costs of building a new house, townhouse, and apartment in Victoria, as well as key tips for managing knockdown rebuild costs.

The Costs of Building a New House in Victoria

Building a new standalone house in Victoria can vary significantly depending on several factors, including the size of the house, the quality of finishes, and the complexity of the design. On average, building a standard home in Victoria costs between $1,800 and $3,000 per square metre. However, premium homes with high-end finishes, custom features, or architectural designs can cost upwards of $3,500 per square metre.

Here’s a rough estimate for different sizes:

• 150m² house: $270,000 – $450,000
• 200m² house: $360,000 – $600,000
• 250m² house: $450,000 – $750,000

Additional costs to consider include site preparation, land excavation, utility connections, and any custom inclusions. These can increase the total cost significantly, especially if the land is sloping or requires extensive groundwork.

The Costs of Building a New Townhouse in Victoria

Building a townhouse in Victoria is often more cost-effective than building a standalone home, especially when land prices are high. Townhouses typically have smaller footprints but may be multi-storey, which can increase construction costs.

The average cost of building a townhouse in Victoria ranges from $1,800 to $2,800 per square metre, depending on design complexity and finishes. For a more premium or custom-built townhouse, costs can go up to $3,200 per square metre.

Here’s a rough estimate for townhouses:

• 150m² townhouse: $270,000 – $420,000
• 200m² townhouse: $360,000 – $560,000

Townhouses usually share walls with adjacent properties, which can reduce building costs. However, this also means there are specific considerations for insulation and fireproofing between dwellings that can affect the price.

The Costs of Building a New Apartment in Victoria

Building an apartment complex is generally more expensive per square metre than a house or townhouse due to the additional complexity of multi-storey buildings and compliance requirements. However, per individual unit, costs are often lower because of shared infrastructure and services.

The cost of building an apartment in Victoria can range from $2,500 to $4,000 per square metre. High-end developments in prime locations can exceed $5,000 per square metre, particularly for luxury apartments.

For a standard apartment of 80m²:

• 80m² apartment: $200,000 – $320,000

While apartments are more affordable for individual buyers, developers face additional costs related to planning permits, strata requirements, and multi-storey construction safety standards, which can affect the final price.

The Factors Affecting Standard or Custom (Including Knockdown Rebuild) Costs

When planning a custom build, such as a knockdown rebuild, there are several factors that can impact costs:

• Design Complexity: Custom-designed homes with unique architectural features, multiple storeys, or intricate layouts are generally more expensive to build than standard designs.

• Materials: The quality of materials plays a significant role in cost. Standard materials like brick and timber are more affordable than high-end materials like stone, glass, or custom metalwork.

• Site Conditions: Site conditions, including the slope of the land, soil quality, and the need for demolition (in the case of knockdown rebuilds), can increase the cost of construction significantly.

• Permits and Compliance: Custom homes may require special permits, and navigating local council regulations can increase costs. This is especially true for knockdown rebuilds, where demolition permits and heritage overlays need to be considered.

• Location: Building in prime metropolitan areas typically costs more due to higher land prices, stricter council regulations, and a demand for premium finishes.

• Labour Costs: Custom builds often require more skilled labour, which can drive up costs, particularly if you require highly specialised tradespeople or architects.

Tips For Managing Knockdown Rebuild Costs

Managing costs for a knockdown rebuild project requires careful planning and clear communication with your builder. Here are some tips to keep your project within budget:

• Work with a Fixed-Price Builder: Opt for a builder who offers a fixed-price contract to avoid surprise costs during construction.

• Choose Standard Inclusions Wisely: Custom features can add significant costs. Decide early on which custom features are essential and which can be standard to help manage your budget.

• Plan for Demolition Costs: Factor in the cost of demolishing the existing property, which can range from $10,000 to $40,000, depending on the size and complexity of the teardown.

• Account for Site-Specific Conditions: Ensure your budget covers any additional site costs, such as sloping land or poor soil that requires excavation and reinforcement.

• Stay Involved: Regularly communicate with your builder to stay on top of changes and potential cost overruns.

Plan Your Knockdown Rebuild to Perfection With Varcon Group

At Varcon Group, we understand that building a new home, whether a knockdown rebuild or a custom project, is a major investment. That’s why we offer tailored solutions to meet your unique needs while staying within your budget. From handling site assessments and demolition to guiding you through the design and build process, we make sure every detail is covered.

We offer transparent pricing and fixed-cost contracts, so you know exactly what to expect. Our team of experienced builders will ensure that your dream home is constructed to the highest standards, with no surprises along the way. Whether you’re building a new house, townhouse, or apartment, Varcon Group is committed to delivering quality, reliable, and excellent service.

Let us help you plan and execute your knockdown rebuild to perfection—contact Varcon Group today to get started.

CONTACT VARCON GROUP