If there’s one thing Australia has in abundance, it’s land. So if you’ve got a picture in your mind of your perfect home down under, why not take advantage of this empty space and find your own plot to build your own? That way, you can have it exactly how you imagine.
When looking to purchase a block of land, some advice is to look for something which has a good building opportunity. If it is a sloping site, you need to factor in additional excavation costs and foundation works. It would be best to choose a home design that suits a sloping block to reduce the foundation and excavation cost (i.e. split level, garage underneath etc.).
Also, it is wise to carry out a Geotechnical Investigation to determine the ground classification – if rock, the cost for a rock breaker to do the excavation is on an hourly rate and could result in huge amounts more before you even commence construction of your home. Alternatively, if the ground is too soft or there is a natural spring or groundwater, you will also be looking at additional costs for drill foundations down through this to stable ground.
Am I allowed to buy & build land in Australia?
Yes! Anyone can build a house in Australia as long as their purchase is approved by the FIRB or Foreign Investment Review Board. Normally, this is quite easy to obtain and will rely on you agreeing to complete the building within four years of buying the land and providing evidence of that completion within thirty days. Remember that if there was a house on the plot, it doesn’t count as vacant even if it’s a ruin. In that kind of case, you’d just need to apply for a residential redevelopment purchase instead. The same conditions apply as above, so it’s no hassle.
What are my options for building?
You’ve got three main routes you can go down.
- Firstly, you could essentially self-build from scratch – finding your plot of land to build on, choosing an architect to help design your home and having a builder construct and finish the home.
- The second option is to buy off-plan. This means that you buy from a developer, with a general design already in place, and then choose your fittings and fixtures and so on.
- Both are great ways of getting your dream Australian home, and choosing will depend on how hands-on you want to be and how long a timescale you have.
Where to buy land in Australia?
Skyrocketing prices in Australia’s capital cities are pushing buyers to the fringes in search of an affordable plot of dirt to build a house.
In the nation’s most expensive city, Sydney, the median price for a square metre of vacant land is nudging $1000, while in the next most expensive city, Perth, it’s a tick over $700, according to research by the Housing Industry Association.
But if you’re prepared to live outside the big cities, you can buy a block for far less – in some regional areas, land per square metre is being sold for less than the price of a postage stamp. A 12-hectare block near the central Queensland town of Tara is on the market for about 18 cents a square metre.
When you’re looking at plots, make sure to check the zoning rules, especially in rural areas. There might be a lot of it, but not all land is allowed to be built on. To find your actual plot, use the main real estate portals.
Naturally, the coastal areas will be much more expensive than inland areas. However, you don’t need to go as far as you might think. For example, in New South Wales, you can find land in the town of Mudgee, just three and a half hours’ drive from Sydney, for about $70/m2 – with services already connected.
Minimum Cost of Building a House in Australia
The budget on $2500 per square metre for starters to get your mind in the right place. No, you can’t build a 300m2 home for $450,000 like you can in Australia. Yes, 180m2 might be a more realistic size for that budget.
We had a client in 2018 build a 300m2 home for $2200/m2. It was in Sydney, on a flat site, with a cost-effective builder, 2.55m stud, large living, fairly standard specification.
At the same time, it’s super easy to get over $3000/m2 as soon as the site is anything steeper than flat, retaining walls get introduced, and you start wanting to customise (as we all do) the design. Some group builders are not pricing anything under $2800 a square metre.
What factors do I need to consider when buying building land in Australia?
Location
As previously mentioned, the location has a big impact on price, not only of the building land in Australia but also of the construction costs. In the major cities, these are the prices you can expect to pay per m2:
Sydney $1,780-$5,100
Melbourne $1,720-$3,300
Adelaide $1,580-$3,450
Brisbane $1,800-$4,000
Canberra $1,700-$3,400
Darwin $1,800-$2,800
Perth $1,400-$2,700
However, you can expect the cost of land to be lower in regional Australia – but the construction itself could cost more if you need to get materials shipped elsewhere.
Secondly, as well as zoning, you’ll need to consider the type of climate zone you’re looking for land to build on in Australia. If you’re in a bushfire-prone zone, you’ll need to use fire-resistant materials that meet requirements. You’ll also need to make sure other aspects of the house comply with the rules, such as having bushfire shutters or metal frames for your windows. However, this doesn’t mean you need to compromise on the materials you want – wood isn’t off the list, for instance. It just needs to be fire resistant and meet regulations.
How do I choose the right block of land?
Check the area that has what you need.
Living in an area you love is one of the huge benefits of buying land and building. At first glance, you may be attracted to proximity to the beach or a beautiful view. Consider the following to ensure you make the best purchase decision:
Services – what services will you need now and in the future? Check if the area has adequate child care, schools, medical services, shopping and public transport. If you’re buying in a brand new area, find out when these essential services will become available? Is access their roads going in and out?
Zoning – what type of constructions are allowed in the area? Is it a general residential zone, or will there be higher density or large lot residential constructions down the track? It’s important to check to zone because the area’s general personality may change significantly in the future. It’s also important to be clear on the zoning restrictions if you’re looking to increase your assets’ value by subdividing or building a granny flat. Could your current view be built out by high rise buildings?
Understand the lay of the land
Apart from the size of the block, it is important to consider the terrain of the block:
- Tree removal can be very costly. Maybe restrictions on how many and which trees you can remove.
- Slope – a building can be more complex and expensive on a sloping block. Levelling out a block (if it’s even possible) excavation can add a lot to your construction costs.
- Rocks – what’s the land made up of? Lots of rock in the ground may add to your costs, requires more excavation.
- Forces of nature – in the area in a high fire zone? Is it prone to flooding? Important to know this because it may create challenges for getting home insurance down the track.
Choosing a site
A site can be where an existing house or apartment is located or where you design or build a new one.
Site evaluation
- Planning controls can have a major influence on your design. Check with the local council for easements, setbacks and building restrictions.
- Decide which climatic features need to be taken into account in order of priority and assess these features’ impact on your planning. Determine which climatic features to enhance and which to mitigate in order to increase comfort and decrease energy use. Decide whether solar access or access to cooling breezes takes priority. Is one or the other more important in your climate? Consider the likely impacts of a changing climate (see Adapting to climate change).
- Note the size, orientation and slope of the site. Ensure that solar access opportunities are appropriate to the climate (see Orientation; Passive solar heating; Passive cooling).
- Assess the microclimate (e.g. seasonal temperatures, humidity levels, prevailing winds). Observe how the site terrain and vegetation modify air movement and solar access.
- Observe the potential for overshadowing, loss of privacy and noise from neighbouring areas. Shadow impact is influenced by latitude, height and spread of trees and may affect the way the house is sited.
- Identify vegetation that can be incorporated into open space, used for wind protection or used as part of the site drainage system. Make it a priority to retain native vegetation where possible (see Landscaping and garden design).
- Identify rare or endangered plant and animal species associated with the site. Your local field naturalist society will be able to help.
- Investigate the geology and topography of the site. Is there a threat of landslide, soil slip or creep?
- Assess potential natural hazards such as bushfire risk and flooding.
- Identify any natural site drainage patterns and determine how they can be maintained. Steeper sites usually generate more stormwater runoff.
Covenants and easements
Check, or have your lawyer check, what covenants or easements, if any, there are with the plot. For instance, you might need to use certain building materials in a heritage area or have a right-of-way through a rural property.
Zoning restrictions
Before you purchase the block, be sure to research zoning regulations for your property and the surrounding area. Councils have strict rules regarding what a block of land can be used for (residential, commercial, industrial). If the block next door could potentially develop into a warehouse or 5 story apartment building, it might not be the best option for your quiet retreat away from home. You’ll also want to make sure there are no plans to build a highway or other infrastructure through your land or the nearby area.
Soil and contour testing
We’d always recommend having soil testing carried out outside of pre-planned developments. Australia’s range of climates means you can get quite different results in different places, and some might be much more difficult to build foundations – which can raise the cost. Very moist soil is more likely to move and expand/contract, which can be more unstable, so foundations may have to go deeper.
A contour test, as the name implies, checks the gradient of your plot. The differences might not be so apparent to the naked eye but will be crucial for your architect/builder in drawing up the final plans. A significant slope (definitely visible to the naked eye!) can be a bit of a cost sink – some builders estimate as much as AUD6,000 per metre fall.
Safety from bushfires and flooding
Australia is a country of extremes. Depending on where your block of land is located, it could be at risk of both fire and flooding. These very real dangers can be avoided by consulting resources like Geoscience Australia, which can help you determine flood zones as well as bushfires. State and local government councils will also have more information. Cross-check occurrences over several years to get a clearer picture of how safe your new home will be from extreme acts of nature.
Soil quality and composition
Soil quality and composition impacts both how you build your new home and the potential for growing your plants on your property. When it comes to building, soil composition can impact:
- Cost of building foundations
- Amount of earthworks required
- Stability and land retention
Contact a local and qualified engineer to have your soil tested before finalising your build plans.
Trees and bushland
The position of existing trees can play a significant role in your decision to purchase a block of land. While our natural fauna is beautiful and can add shade to the backyard, it can also pose a risk in extreme weather.
Consider the impacts of falling branches or even whole trees on your home, particularly in storm-affected areas. Removing trees is no easy task either. Fines for illegal removal of native trees can be excessive, so plan accordingly. Local councils can advise on tree removal and restriction.
Utility access
What companies can connect your gas, electrical and water? How much do they cost, and is there any competition?
Rates can differ depending on where your new home is located, so take the time to source information about the companies that can provide your utilities. Contact them by phone for quotes, and ask locals in the area about their satisfaction with local utilities.
Service connections
If you’re buying in a remote community or even in a greenfield area of a larger city, you may well not yet have service connections established. This isn’t an issue – it just means you or the developer will need to lodge new connection requests with your area’s appropriate distributors.
Whether you’re self-building or buying off-plan, you can’t do everything on your own. Finding an architect in Australia is quite straightforward. The Australian Institute of Architects has created a directory, Find An Architect, where you can search by practice, location and building types. If you don’t use this tool – for example, if you have a recommendation from a friend – then do just make sure they’re registered with the Institute.
The type of home you want to build
Remember, your property should be in service to the house you want to build. Ultimately, you want a property to suit your lifestyle and the home you want to build. Browse our range of exciting designs and talk to our design team about how we can help you with your dream home.
What are the advantages of buying land and building?
Done right, with expert loan advice, buying land and building can have huge benefits. For a start, you get to live in a home that’s purpose-built to your needs, in an area you love. You also get to enjoy the lovely, brand newness of your home without ‘wear and tear’ from previous dwellers.
Buying land and building also brings financial advantages:
- When you choose the right area and land, the value of your home is more likely to grow substantially over time.
- You may be eligible for more government grants than when you buy an existing home.
- The amounts you borrow are initially less because they are staged by completion. The most common stages of completion are land purchase, pad (floor), roof, lockup and final completion. You draw down the amount needed from your loan at each stage, rather than one big amount when you buy an existing home.
When it comes to buying land and building your home, knowledge is power!
Arm yourself with the facts and do your homework to find out which approach suits you best. That way, you’ll avoid surprises and unnecessary stress along the way.
Where can you find the experts to make this?
As for finding a builder, you’ll probably want to start with a couple of options and ask them for a quote. For peace of mind, make sure they’re trained by Master Builders of Australia or the Housing Industry Association. Both of these also offer training for sustainable construction, so they can be a good source to ask for someone to help with an ‘eco’ project.
Where you buy or build, your home has a profound influence over your ability to meet your existing and future needs. Where you choose to live has a significant impact on the environment and your finances.