Thinking of building your dream home in 2025? The city you choose could have a big effect on how much you’ll end up paying. While national data shows that prices are rising for materials and labour, what you’ll actually pay varies quite a bit depending on where you’re building. Understanding how construction costs differ between regions can help you plan your budget more accurately.
Let’s take a closer look at how location impacts building costs across Australia.
Gold Coast: A 7.4% Tender Price Index increase between 2024 and 2025
Melbourne and Sydney often take the spotlight, but the Gold Coast is quickly becoming a pricey place to build, too. According to Compare the Market’s Home and Contents team, the Gold Coast saw a 7.4% rise in its Tender Price Index (TPI)—a key measure of construction costs—from 2024 to 2025. Demand has surged, partly thanks to people moving to lifestyle-driven areas after the pandemic. Ongoing labour shortages and rising material costs are adding pressure. What was once seen as a more affordable coastal choice now needs a much higher budget.
Melbourne: Building construction prices up 31.1% over four years
According to the Australian Bureau of Statistics, Melbourne has seen a 31.1% jump in building construction prices between the September quarter of 2020 and the June quarter of 2024. Factors include a strong recovery after lockdowns, large-scale infrastructure works, and steady demand for skilled trades. If you’re planning to build here in 2025, prepare for higher quotes and more competition for contractors.
Brisbane: Soon-to-be Olympic city sees construction inflation
Just up the road from the Gold Coast, Brisbane—host of the 2032 Olympic Games—is also experiencing rising building costs. Construction inflation in 2025 is 7.2%. Since 2017, prices have climbed 38%, with estimates showing continued growth of 5.1% per year from 2026 to 2029. A growing population, especially from NSW and Victoria, has increased pressure on housing and local builders.
Canberra: Nation capital’s building costs rising fast
The Canberra Times reported in 2024 that construction costs are rising faster in Canberra than anywhere else in the country. In the December 2023 quarter alone, ACT housing construction costs rose by 2.6%. Public sector building activity and government projects are keeping demand high. Since 2010, the average build time in the ACT has doubled.
How to make your money go further
Get multiple quotes from local builders
Even within the same suburb, costs can vary. Asking for quotes from several builders in your area lets you compare and gives you a more accurate idea of what your project should cost.
Think about alternative building methods
Brick and mortar might be the go-to option, but it isn’t always the cheapest. Prefabricated or modular homes could offer savings. Look into different materials to see what fits your budget and your location.
Factor in long-term costs
Think beyond the initial build. Will your home stand up to local weather? How far are you from transport and services? These things can affect your ongoing costs and your home’s future value.
Time your build wisely
Prices go up when demand is high. Starting construction in off-peak periods or waiting for conditions to cool down could lower your costs. Flexibility and good timing can save you a lot.
Location plays a huge part in how much you’ll spend on building your home. In 2025, it’s smart to look beyond the cost of land. Labour, materials, and regional trends will all impact the final figure. Those who take the time to compare and plan carefully are more likely to get better value, and a home that’s built to last.
