In a market as complex as the Perth housing market, it can be hard to determine whether to buy or build a home. On average, building a house is usually cheaper than buying a home.
However, this can change depending on the location, type of building, and other hidden costs. Below is a comparison of the costs of buying a house vs. building one.
Is it Cheaper to Build or Buy a House in Perth?
In 2026, building a house in Perth may offer more affordability compared to purchasing an existing property, depending on factors like location, design, and material costs. However, rising land prices and potential construction delays can impact overall expenses. It’s essential to compare both options and consult with experts to determine the most cost-effective choice for your situation.
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What is The Average Cost For Building a House in 2026?
In 2026, the average cost of building a house in Australia ranges from approximately $1,800 to $4,500 per square metre, depending on factors such as location, design complexity, and material quality. For a standard 200-square-metre home, this translates to a total cost of $360,000 to $900,000. Prices can vary significantly across different states and cities. For example, building costs in Sydney can reach up to $7,600 per square metre, while in Perth, they range from $2,450 to $4,750 per square metre.
What is The Average Cost For Buying a House in 2026?
The average cost of purchasing a home in Australia has surpassed $1 million, with the national median house price around $1,002,500 in early 2025. This upward trend is expected to continue into 2026, with some cities experiencing significant price increases. For instance, Sydney’s median house price is forecasted to rise by another 7%, reaching $1.83 million by mid-2026. In contrast, Perth’s median house price has increased to $787,000, slightly higher than Melbourne’s median of $782,000.
Cost of Buying a House in 2026
Buying a house is always the most convenient form of homeownership. It takes the shortest time and often gives you a clear view of some of the hidden costs you’ll face. In short, you’ll know what you’re getting.
How much you’ll spend depends largely on location and property size. In 2026, the median house price in Sydney is around $1.83 million, significantly higher than Perth’s median of approximately $787,000.
Hidden costs are also a big part of what you’re going to incur if you opt for this route. Among the most common costs that may inflate prices include:
- Stamp duty, which varies depending on the property value and state regulations
- Property valuation fees, approximately $150 to $350
- Home loan application fees, around $250 to $750
- Legal and conveyancing fees, typically $800 to $2,800
- Mortgage registration and transfer fees, approximately $500 to $1,600
- Building and pest inspection fees, around $350 to $650
- Council and water rates, roughly $550 to $1,500 annually
- Lender’s mortgage insurance, usually 1 to 3% of the loan amount
- Moving costs, approximately $80 to $350 per hour
If you’re a first-time buyer, some states exempt you from a few of these taxes like the stamp duty. However, this still leaves the cost of buying a home quite high.
Buying some homes may also come with recurring costs such as repairs, council rates, insurance, among others – which you’ll have to pay.
Cost of Building a House in 2026
If you opt to build a house, your biggest costs will come from purchasing or leasing the land, and the cost of the materials.
In 2026, the median building cost in Australia ranges from approximately $650,000 to $1,100,000, or around $650 to $4,000 per square metre, depending on location, design, and material quality. Prices continue to rise due to increasing land values and supply chain pressures on building materials. Labor costs also play a significant role, and during periods of labor shortages, construction expenses can escalate quickly.
Other factors that will influence the building costs include:
- House size – Larger houses will require more labor and materials, hence cost more.
- Finishing quality – To get the best quality finishing in your home, you’ll need high-quality materials, which tend to be more expensive.
- Extra features – If you include extra amenities in the home such as a swimming pool, fencing or other landscaping features, your costs will drastically rise.
While there’s probably more costs you’ll incur when building, you’ll also get to enjoy a cheaper stamp duty compared to home buyers, and receive more grants.