The Biggest Cost of Building a House
Author: Joe Grbavac, Director, OMNI Built Homes
With over 30 years of experience in the project home and custom home building industry, Joe has overseen numerous successful projects from conception to completion. His deep understanding of the intricate processes involved and his commitment to quality and client satisfaction make him a trusted expert in the field.
Key Takeaways
- Site and land costs can be a major upfront expense, especially for knockdown rebuilds in Brisbane.
- Construction costs are rising due to material shortages, labour pressures and energy efficiency standards, particularing in Brisbane ahead of the 2032 Olympics.
- Budget blowouts are usually caused by mid-build upgrades initiated by clients, and post-handover costs.
- Working with a transparent builder like OMNI Built Homes can help prevent costly surprises.
Major costs in building a house
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Building a new home gives you the chance to design a space that truly reflects your lifestyle. But alongside that freedom comes a cost. The average cost of building a house in Australia is between $1,900 and $5,000 per square metre, depending on the size, finishes and site complexities. In Brisbane, where land availability is tightening, additional costs like demolition and site preparation often come into play. Knowing what is the most expensive part of building a house helps homeowners plan more effectively.
These building costs can be influenced by several factors, including location, land condition, and whether you’re pursuing a new build or custom home design. When budgeting for your new house, it’s important to factor in both structural integrity and interior finishes.
Land purchase and site preparation
While many people focus on the construction price, land can be one of the most significant costs, which is not included in standard build quotes. In Brisbane, where more buyers are opting for knockdown rebuilds, costs like demolition, site clearing and retaining walls need to be factored in early. However, it’s worth noting that the cost of building a house in Brisbane can vary significantly depending on site conditions, location and more.
Land is an essential factor in determining your total cost. In South East Queensland, land prices continue to rise, and any unique site conditions may also affect costs.
Construction costs (labour + materials)
The core of any build budget, includes framing, slab work, roofing, walls, windows, doors, and fit out. Material costs have surged due to global supply issues, while quality trades are in high demand. New energy efficiency requirements have also impacted build prices. While these changes can create long-term savings, they add short-term costs that clients should be aware of. It’s vital to understand the most expensive parts of building a house so that adequate budget buffers can be applied.
Council fees and approvals
Planning approvals, building permits, inspections and compliance certificates all come with fees. Town planning may also be required, particularly for properties with zoning overlays. These fees contribute to your overall cost and can affect your timeline.
Inclusions and finishes
Kitchens, bathrooms, flooring, appliances and internal finishes can vary greatly in price depending on your selections. These are often the most visible (and exciting) elements of your home, but can also lead to cost overruns if expectations and budgets aren’t aligned.
Premium materials and bespoke designs can push up the price significantly. The process of building a house is deeply personal, and every dream home has different priorities.
Utilities and connections
Connecting to sewer, water, power, and NBN is essential but sometimes overlooked. Costs vary depending on your location and existing infrastructure, so these should be confirmed before finalising contracts. When clients ask how much does it cost to build a house, these connection fees are an important part of the answer.
Plumbing and electrical systems often require skilled trades, which can add to your overall build costs — but they’re essential for creating a safe, functional home.
Unexpected or hidden costs that catch people out
Many costs are foreseeable with proper planning, but that doesn’t stop them from surprising first-time builders. Preparation, inspections and open communication with your builder are key.
Site-specific costs
Provisional sums are used to estimate site costs, like rock removal. These aren’t hidden, but they can’t be confirmed until work begins. Challenging access, flood or bushfire zoning are usually known during planning and can be budgeted accordingly. With proper site investigation, these don’t have to be costly surprises. Knowing what is the most expensive part of building a house enables better decision-making before contracts are signed.
In some areas of Brisbane foundation costs can reach tens of thousands due to underlying soil conditions however site research early in the process can allow for these costs so they’re not a surprise later on.
Variations and upgrades mid-build
One of the most common causes of cost blowouts is changes made after construction has started. Whether it’s switching to higher-end tiles or moving a wall, upgrades and variations typically come with administrative and labour costs.
These changes can dramatically affect your overall cost. Clear planning helps avoid reactive decisions that can impact structural integrity or the efficiency of your design.
Time delays
Weather events, supply chain disruptions, and permit delays can all slow a build. With major projects like Brisbane’s Olympic infrastructure underway, labour shortages are expected to impact availability and pricing in the coming years. Delays also have knock-on effects, such as temporary accommodation costs or extended loan interest.
Landscaping and driveways
These are not usually included in base build contracts. Fencing, lawns, driveways and garden beds can add up quickly, but are often more affordable when managed by the homeowner post-handover using their own contractors.
This phase is also an opportunity to save money – many homeowners reduce costs by completing exterior finishes themselves.
Furnishing and fit-out
Furniture, blinds, security systems, TVs and other finishing touches are often forgotten when budgeting but play a big role in the final move-in cost. Planning for these early ensures they don’t become unexpected expenses.
Fixtures and furnishings are unique to each dream home and should align with your custom design vision.
Tips for building without blowing the budget
Set a realistic budget (and include a buffer)
Start with a clear idea of your total spend – including land, build, site works and approvals. Add a 10–15% buffer for unknowns. This helps you make decisions with confidence rather than cutting corners later.
Including all factors early ensures your home build stays on track. This includes exterior finishes, essential systems and your preferred timeline.
Work with a transparent builder
Fixed-price contracts and clear inclusion levels help avoid confusion. At OMNI Built Homes, we offer detailed packages that outline what’s included and what’s not, helping you avoid misleading “price per square metre” quotes. Good builders will also help you understand site and council requirements upfront, so you’re not caught off guard. This approach helps homeowners understand how much it costs to build a house from the outset.
We also support clients in making informed decisions about where to invest and where to hold back. These choices directly influence the final cost.
Be decisive and stick to your plan
Every change comes at a cost. That’s why we recommend finalising selections before building begins and resisting the temptation to make upgrades mid-build.
Decisions about layout, fixtures and systems should be made early. They are essential to staying within budget.
Prioritise where to spend
Invest where it counts – kitchens, energy efficiency, and structural items offer lasting value. Cosmetic finishes can be upgraded over time. By identifying the most expensive parts of building a house, you can better manage your build priorities.
Focus on areas that affect daily life and safety. Optional extras like swimming pools can be added later if the budget allows.
Understand what’s included and what’s not
Don’t assume fencing, landscaping or driveways are included. Review your tender documents thoroughly and ask questions until you’re confident in what you’re signing. This clarity supports your understanding of the cost of building a house in Australia.
How OMNI Built Homes keeps clients in control
At OMNI Built Homes, we believe that building your dream home shouldn’t come with hidden costs or stress. That’s why our packages are designed to be transparent and easy to understand. We offer fixed pricing, clear inclusions and the flexibility to customise your build to suit your lifestyle and budget.
Our experienced team is there from day one to help you make informed decisions, avoid unnecessary upgrades and plan effectively. We believe in open communication and honest advice – and our 5-star reviews reflect that commitment.
Whether you’re planning a knockdown rebuild or building on your own block, we’re here to guide you through the process with clarity and care.
Build your dream Brisbane home with confidence
Understanding the biggest costs in building a house can help you take control of your budget and avoid costly surprises. From land to finishes, it pays to plan ahead and work with a builder who values transparency.
At OMNI Built Homes, we help Brisbane families build with confidence. Talk to us today about your home-building goals – and how we can help bring them to life without blowing the budget.