When building a house there are a lot of costs to consider. Virtually every step throughout the construction process comes at a cost. While the price of building a house can be cut down by sourcing cheap locations to build, this is not the only cost cutting option. A kit home allows individuals to buy the land they actually want and build a kit home on top of it without breaking the budget. With kit homes, you can have your dream house on your dream piece of land and still have saved money.

The cost of building a house in Australia

So, what is the cheapest way to build a house in Australia? The cost of building a house in Australia consists of many underlying factors. From site costs and pre-start costs to variations and finishing costs, building a house in Australia can be costly.

Site costs include expenses relating to preparing the block of land for building upon. These costs pertain to retaining walls, site surveys, soil tests and site clearance.

Pre-start costs start to add up when it’s time to choose the colours of fittings and materials. Pre-start costs tend to get out of control if you decide to make changes to lighting layouts and other plans that have already been drawn up.

Builders have a mark up of around 20-25% on variations, no matter how big or small. Variations can come in the form of changing the colour of grout tiling or adding another full size room.

It is estimated that the average cost of building a new home in Australia is around $306,885.

A project home with a basic finish costs around $900 per square metre in Adelaide and $1210 in Brisbane. In Melbourne the cost is estimated at $1180 while it is slightly more in Sydney, costing $1190.

Cheapest locations to build

It won’t be surprising to most that some of the cheapest locations to build are located several kilometres outside the major capital cities. However, the sheer amount of land on offer for reasonably good value is enough to convince anyone to build their dream home in one of these locations.

The median price for a square metre of vacant land is almost $1000 in the most expensive cities, whereas large blocks in regional areas are on offer for less than $1 per square metre.

Priced at $6000, one of the most affordable locations in Australia is Western Australia. While the land would need earthworks, the 1760 square metres on offer is hard to refuse.

South Australia also offers cheap land by the ocean. A 1085 square metre piece of land close to the water in Port Germein would set you back $15,000. However, the water views are a dream.

Over in Victoria, in the town of Brim, famous for their silo artworks also offers land for value. A 2000 square metre block would set you back $15,000.

Many land owners will note that location is just as important as the house you build. With a block of land in one of these locations and a kit home, you could be well on your way to building one of the cheapest houses in Australia.

What are the cheapest house building options?

In Australia, there are a few different methods that can be used when building a home, but when it comes to affordability there are really two to choose between. These are:

  • Kit homes – a kit home is where the frames, trusses and materials required to build your home according to your chosen design are delivered to your building site, from which your chosen contracted builder completes the construction from the ground up.
  • Modular or ‘prefabricated’ homes – a modular home is one that has sections primarily assembled offsite in a ‘factory’, with the finished sections then transported to the building site and assembled with cranes.

Kit home prices

The cost of a kit home is affected by a number of things. From permits, materials and labor costs, choosing a kit home doesn’t mean eliminating costs altogether, but rather minimizing them.

With Kitome, the cost of a 3 bedroom kit home starts fromjust $54,367. A 4 bedroom starts from $67,514 while the cost of a 5 bedroom begins at $91,155.

When compared to a 3 bedroom house in Australia costing anywhere between $160,000 and $195,000, the price of a Kitome kit home speaks for itself. While there are still labour and construction costs to consider, a kit home still works out to be the cheapest way to build a house in Australia.

Start designing today

Looking for your dream home? Kitome offers a wide range of fully customisable homes for you to choose from or you can design your own! Talk to the friendly team at Kitome today.

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