Where Is the Cheapest Place to Build a House in Australia
Where Is the Cheapest Place to Build a House in Australia?

Where Is the Cheapest Place to Build a House in Australia?

Where is the cheapest place to build a house in Australia? Building a house in Australia comes with its set of challenges, particularly the cost, which varies significantly across different states and territories. However, certain areas offer more affordable options for those looking to build a new home.

Cheapest Places to Build a House in Australia

South Australia stands out for its affordability, with Adelaide being highlighted as having the country’s most affordable lots. The median price for lots in Adelaide is around $175,000, which is significantly lower than the more densely-populated cities like Sydney, Melbourne, and Canberra, where median land prices hover around $300,000-$500,000. Building in less populated cities, therefore, presents a cost-effective alternative​​.

Western Australia and Queensland also offer more affordable options for building a new house. In Western Australia, construction costs rose slightly over the December 2023 quarter, but the state recorded the lowest cumulative increase in construction costs since the onset of the pandemic, up 24.5% compared to a 26.6% rise nationally​​. Queensland experienced the greatest cumulative increase in residential construction costs since the pandemic began, at 28.4%, yet it still remains an attractive option due to its lower median house values compared to other states​​.

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Affordable Land Options

For those seeking cheap land, areas such as Dumbleyung and Sheringa in Western Australia and South Australia, respectively, offer blocks priced between $7,950 and $18,000. These regions are appealing for individuals looking for a coastal or rural outlook for a weekend getaway or a peaceful retirement spot​​.

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Buying vs. Building

When considering the affordability of building a house in Australia, it’s also important to look at the cheapest suburbs to buy a house, as this might offer a more cost-effective alternative. In Queensland, suburbs like Charleville, Collinsville, and Mount Morgan feature among the country’s most affordable, with median house prices ranging from $150,000 to just over $159,000. These areas are located in regional parts of the state, offering great value for buyers looking to enter the housing market​​.

Factors Affecting Costs

Building costs in Australia have been influenced by several factors, including disruptions caused by COVID-19, global supply chain issues, and labor shortages. The introduction of new national home building codes aimed at ensuring more liveable and energy-efficient housing is expected to further increase the cost of building a home by approximately $30,000​​.

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Where is the cheapest place to build a house in Australia? For potential homeowners looking to build a new house in Australia on a budget, exploring less populated cities like Adelaide, and regions in Western Australia and Queensland, can offer more affordable land options. It’s also beneficial to consider both the costs of building and buying in these areas to determine the most cost-effective path to homeownership. The choice between building and buying will ultimately depend on individual preferences, budget, and the value placed on customization versus convenience.

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