Construction Cost per Square Metre in Australia: 2027 Guide
Construction cost per square metre is the number everyone asks for and the one most often misused. It is a useful shorthand. It is also an average of very different buildings.
This guide shows what the Australian Bureau of Statistics (ABS) data implies for new houses, how to read it, and where a rate per square metre helps or misleads. Every number here comes from a dated public source. We have not made up a 2027 rate.
Where a published rate per square metre comes from
The ABS publishes two averages for new houses in the same dataset: the average cost and the average floor area. Divide one by the other and you get a rate per square metre. The ABS does not publish that rate itself, so treat ours as a transparent calculation, not an official statistic.
average cost, 2024-25241.5 m²
average floor areaabout $1,967 per m²
The ABS value of building work includes site preparation costs and excludes land and landscaping. Residential values include GST. Those boundaries matter when you compare the figure with a quote.
Cost per square metre by state, 2024-25
- National, 2024-25$1,967
- National, 2018-19$1,393
- Change since 2018-19About 41% higher
- State range$1,585 to $2,538
Average cost per square metre of new houses completed, by state
| State or territory | Average cost of a new house | Average floor area | Cost per m² (our calculation) |
|---|---|---|---|
| ACT | $645,052 | 298.2 m² | $2,163 |
| New South Wales | $565,749 | 236.1 m² | $2,396 |
| Northern Territory | $475,310 | 206.5 m² | $2,302 |
| Queensland | $458,868 | 230.9 m² | $1,987 |
| South Australia | $389,949 | 218.1 m² | $1,788 |
| Tasmania | $420,756 | 165.8 m² | $2,538 |
| Victoria | $485,292 | 253.5 m² | $1,914 |
| Western Australia | $407,114 | 256.8 m² | $1,585 |
| Australia | $474,939 | 241.5 m² | $1,967 |
Source: ABS, Building Activity, Australia, December 2025 release (published 8 April 2026), Average Cost and Average Floor Area of New Dwellings. Cost per square metre is Koste’s calculation from those two series.
Look at Tasmania and Western Australia. Tasmania’s average new house in 2024-25 was 165.8 m², the smallest of any state or territory, and its rate per square metre is the highest. Western Australia’s average house was 256.8 m², the largest of the states apart from the ACT, and its rate is the lowest. Part of the gap is fixed costs, such as services, site works and a kitchen and bathrooms, being spread over fewer or more square metres. Part is the real price of building in each place. The data alone cannot split the two.
How the rate has moved since 2018-19
Source: ABS, Building Activity, Australia, December 2025 release. Cost per square metre is Koste’s calculation (Australia average cost divided by Australia average floor area).
The rate moved only modestly through the pandemic years, then climbed from 2022-23. The ABS Producer Price Indexes show the same pressure continuing after that period: house construction output prices rose 5.7% in the 12 months to the September quarter 2026, with the ABS pointing to PVC and copper, transport and logistics and shortages of skilled labour. That tells you the direction. It does not give you a rate for 2027.
The newest completed-house data runs to 2024-25. Adding a guess for 2027 would be a forecast dressed up as a statistic. If you are budgeting for a 2027 start, use a current estimate and an escalation allowance with a stated date, and review it before you sign a contract.
What a single rate hides
- 200 m² at the Western Australia average rate$317,000
- 200 m² at the Queensland average rate$397,400
- 200 m² at the national average rate$393,400
- 200 m² at the ACT average rate$432,600
- 200 m² at the Tasmania average rate$507,600
This multiplies a hypothetical 200 m² house by published 2024-25 state averages. It is arithmetic to show the spread, not a quote or an estimate for any real house.
- Building type
Houses, townhouses, apartments, offices and warehouses have very different rates. The ABS figure here is for new houses only.
- Size effect
Small buildings usually cost more per square metre than large ones because kitchens, bathrooms and services do not shrink in proportion.
- Specification
A rate is only comparable if the finish level is. Two houses of the same area can sit far apart.
- Date
A rate is a price at a point in time. The newest completed-house data here is for 2024-25 and the building cost pressures have continued since.
- Inclusions
Check what is in the rate: site works, external works, landscaping, GST, fees, contingency and escalation. The ABS figure excludes land and landscaping.
- Which area
Is it floor area under the roof, or a measured area that includes garages, balconies and verandahs? Rates quoted on different bases are not comparable.
How to use a rate per square metre properly
- 1. Match the typePick a rate for the same building type, storeys and quality level.
- 2. Match the areaUse the same measure of area as the rate, and measure it from the drawings.
- 3. Move it to todayCheck the date of the rate and index it to a current price, stating how.
- 4. Add what is not in itGST, fees, external works, contingency and escalation, if the rate excludes them.
- 5. Replace itAs drawings develop, swap the rate for measured quantities and priced elements.
This is how a quantity surveyor treats a rate. It is a starting point at feasibility stage and a cross-check later. It is never the final estimate, because a rate cannot see your site, your design or your contract.
Rates for other building types
The ABS data above covers new houses. For other building types, Koste publishes a construction cost table with rates per square metre by building type and city. It is based on an AIQS Building Cost Index from September 2023 and is a guide only. Koste notes on that page that the rates are typically well out from current actuals, so use it to compare building types with each other, not as a current price.
For a faster working view, the koste.ai construction cost tool lets you search rates and try a cost calculator. For a project you are about to commit money to, ask a Chartered Quantity Surveyor for an estimate that shows its date and assumptions. Our guide to the cost to build a house in Australia covers the wider picture.
Frequently asked questions
What is the construction cost per square metre in Australia in 2027?
No reliable 2027 figure exists yet. On our calculation from ABS data, the average new house completed in 2024-25 cost about $1,967 per square metre, excluding land and landscaping. Prices have kept rising since, so a current estimate for your project should be built from quantities, not from this average.
Does the cost per square metre include land?
Not in the ABS data used here. The ABS says its value of building work excludes land and landscaping. It includes site preparation costs and, for residential building, GST.
Why is the rate higher in some states?
Local prices and labour availability differ. House size also matters: where the average house is small, fixed costs are spread over fewer square metres, which lifts the rate. The ABS averages cannot separate the two effects.
Can I multiply my floor area by the average rate to budget?
Only as a very rough first check. The average mixes every size, design and finish, and it excludes items such as land and landscaping. A quantity surveyor estimate based on your drawings and a current date will be far more reliable.
Where can I find rates for offices, apartments or warehouses?
Koste’s construction cost table lists rates per square metre by building type and city. It is based on a September 2023 AIQS index and is a guide only. Ask for an estimate if you need a current figure.
About Koste. Chartered Quantity Surveyors with RICS, Certified Quantity Surveyors with the AIQS, and registered tax agents.
Important information. This article is general information. It is not a quote, valuation or financial advice. Statistics are as published by the ABS on the dates shown. The cost per square metre figures are Koste’s own calculations from two ABS series and are averages, not prices for any particular project. Koste has not forecast any 2027 cost.
Sources. Australian Bureau of Statistics: Building Activity, Australia, December 2025 (Average Cost and Average Floor Area of New Dwellings); Building Activity, Australia methodology; Producer Price Indexes, Australia, September 2026.
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