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How Much Do Home Builders Cost in Mandurah? [How to Save Money on Your Next Perth Home]

Australian home builders typically calculate the cost of a build by multiplying the total floor area (m2) with the cost estimate of materials and labour (cost per m2). Your home builder will also charge a builder’s margin to ensure they turn a profit while still delivering a home that ticks all your boxes and meets your budget.

To help you understand the costs of hiring a home builder, we’ve put together this simple price breakdown – so let’s talk dollars and cents.

Building a new home is an exciting milestone in life, but it can also be a costly one.

While no one expects a new home to be constructed for peanuts, it’s important you know what costs you’ll face from home design to planning and permits, right through to construction and handover.

At Compass Homes, we offer an end-to-end service across design and construction, so we know what it costs to turn dreams into reality. And with 28 years of experience, we’ve developed a network of suppliers and contractors that help us keep costs low while delivering a house that instantly feels like home.

Whether you’re after a single, double, or three-storey home, read on to discover how much a home builder will cost in Perth.

Is it cheaper to buy or build a home?


In most cases, it’s cheaper to buy a home than build a new one, but price alone doesn’t tell the whole story.

If you’re looking to start your life in Perth and have the vision of a dream home, odds are the only way to match that vision with a real-world property is to build it yourself. While buying a home will (in most cases) be cheaper than building, it’s important to keep in mind what you’re giving up.

Not only are many older Perth homes lacking in energy efficiency, but a pre-loved home won’t ever have the full list of features and amenities you’re after. So while you might save upfront by choosing a home on or from your local realtor’s listings, you’ll forego benefits that only come with a fresh build.

These benefits include:

  • First Home Owners Grant (FHOG) that may offset the cost of stamp duty and finishing costs (if applicable)
  • Build your new home to match your exact tastes, wants, and needs
  • Lower ongoing maintenance and energy costs (design your house to be energy efficient)
  • Less competition to buy land than there is to buy a home

So if you’re leaning toward a new home build, let’s start talking dollars and cents.

What am I actually paying a home builder for?


It’s too simple to answer that question with “to build your home”.

Naturally, a home builder will manage the entire build process, either providing construction services themselves or through a partner network of subcontractors and experts. But your home building fee isn’t just going toward the day-to-day build site activities you stop by to check out.

The easiest way to understand what a home builder is being paid for is to break it down into three distinct categories:

  • 50% on materials
  • 35% on labour
  • 15% on council fees and approval

You’ll also be paying extra to ensure your builder turns a profit (they are running a business, after all), though this will be factored into all reputable home builder quotes and budget breakdowns.

Home builder checklist: How to get your money’s worth


To help stay in control of your budget, use our free checklist to find out what’s included in your home builder fees, and what’s not.

When you’re looking at a total projected price, check to see if the following are included:

Although the price of building materials may fluctuate and affect your final price, knowing what’s included in your quote will help you get the most bang for your buck.

Don’t forget to budget for unplanned costs


“What? I have to pay for extra costs along the way?”

That’s right.

Your home builder will have costs that are either fixed or variable.

Fixed costs are applicable no matter who the customer is. Whether you’re after a two-bedroom home in the suburbs or a sprawling four-bedroom home by the beach, these costs are required to proceed with the project. For example, site preparation can cost between $7,000 and $70,000 depending on the site.

You’ll also need to factor variable costs into account.

Variable costs include what your home builder thinks a certain material, task, or service will cost. These are integrated into your contract, but they are only estimates because it’s impossible to fully predict how a build will unfold.

These may come based on changes you request. For example, you fall in love with a new fixture after you’ve signed a contract with an alternate (and cheaper) fixture. Or, a flat site may end up with difficult rocks that prevent builders from laying a slab, leading to extra costs for diggers and excavators.

While these costs can’t be predicted to the dollar, it’s always a good idea to keep them in mind (or add a buffer amount to your budget) to be ready for these small changes as they pop up.

How much does it cost to build a new house in Australia?


The cost of building a home varies based on the size and style of your home, materials you choose, complexity of the site and build, and even the quality of the home builder you choose.

Anyone who gives you an exact quote either has a crystal ball or isn’t telling the truth about their process. But we can offer up some ballpark figures to show you what other Aussies are paying for their new homes.

State-by-state comparison of building a new home

What factors affect the cost of a home builder in Perth?

When it comes to a new home, one size does NOT fit all.

Calculating an exact figure to build a home is tough because there are countless variables that can help bring your cost down or cause your budget to balloon outwards. Three of the most important factors affecting the price of a home builder include:

  • Property size
  • Material quality
  • Site constraints

Remember, you’re not just paying for a home builder’s expertise. You’re also paying based on the size of your future home and the quality of materials. To help you understand where your money is going, here’s a quick insight into each variable.

Property size

Forget what you’ve heard. Size DOES matter.

In most cases, larger properties will be more expensive than smaller properties. This comes down to the increased amount of material needed as well as the greater number of man hours, planning, and site preparation.

Material quality

Are you using a timber facade or full brick? Your choice of materials (which your home builder can help with) will go a long way toward determining your overall price.

The quality of materials also refers to your choice of finishes and fixtures inside the house. For example, marble benchtops offer a striking aesthetic in the kitchen, but if you want to save money you may opt for a simpler natural stone, like granite, or avoid natural stone completely to save money.

Site constraints

Not all land is build-ready.

Outside of Perth council permits and building regulations, your site may need extra preparation from soil testing to levelling a natural slope. The more preparation required, the more expensive your home builder’s quote is likely to be.

Types of building services

It’s tough to know what a home builder will cost without first settling on the type of home you’re after.

Naturally, it costs less to build a small, one-bedroom, brick home than it would a modern multi-story property by the beach. We’ve rounded up the most common building jobs that Perth home builders are hired to work on to give you an idea of your options.

Granny flats

Building a granny flat isn’t *technically* a new home build, but it’s a popular construction project that makes efficient use of your space, or generates rental income to supplement your primary income.

The cost to build a granny flat in Perth can range from $10,000 right up to $150,000 depending on size, inclusions, and complexity.

Looking for a little inspo? Check out our completed project gallery here

Home extensions

Not every home needs to be built from scratch. You can hire a home builder to extend your current Perth property such as adding extra bedrooms or extending your outdoor living space.

Home extensions typically cost between $965 and $2,710/m2, with the complexity of the upgrade affecting your price. As an example, it’s more expensive to add a second storey to your current home than another ground-floor room.

Thinking of extending your home? Click here to explore our home extension services

New home

It’s tough to estimate the cost of a new home because homes come in so many shapes, styles and designs. As an average, a new home will set you back between $1,720 to $2,830/m2 for a single-storey, full-brick home.

If you’re looking for a more deluxe custom home, or a multi-storey abode, then these costs will go up.

How do home builders charge?

Your home builder will partner with you for a long term project, often taking years from project inception to completion. For this reason, it’s not practical to measure every cost per hour, but as an average most Perth builders charge between $85 to $150 per hour.

When you’re comparing local builders, whether you live in Joondalup or Cottesloe, it’s best to compare other metrics, like cost per square metre.

As a reference, the average cost of building a new home is $1,393.55/m2.

However, this figure doesn’t include planning permits, design drawings, or any unforeseen costs along the way, so it’s best to use as a starting point rather than a definitive price point.

You’ll be able to use your cost per metre squared to ballpark your overall home build costs, provided you know the size of your soon-to-be home. For example, the average Australian home is 229.8m2.

At $1,339.55/m2, a 229.8m2 home would set you back $320,238.

Looking to build your new dream home at a price that meets your budget?

While the figures we’ve outlined aren’t pocket change, it’s nice to know that building a new home will typically cost less than buying an existing home.

As an added bonus, finding the best Perth home builder for you means creating a home that’s engineered to suit your lifestyle and meet the needs of your family. It’s also important to keep in mind that the cost of a home builder typically doesn’t take into account extra expenses like planning fees, stamp duty, or legal fees.

At Compass Homes, we’ve got 28 years of experience helping Perth families build their perfect home. So when you’re ready to chat about prices and compare us with the competition, we’re only a phone call away.

If you’ve got questions about building a new home in Mandurah (or surrounds) reach out and speak to one of our design-and-build experts on 08 9583 4102 or request a FREE consultation to discover more.

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