The cost of building in Tasmania

In 2008, it cost approximately $11,000 to $12,000 a square to build a brick-veneer home in Tasmania, according to Michael Kerschbaum, Technical Services Manager at the Master Builders Association of Tasmania. The current price may be up to 50% more as the cost of materials and the additional costs associated with compliance with 'eco' regualtions are factored in.

Architect-designed homes with luxury inclusions, are often more expensive than this, he indicated.

Costs are difficult to estimate without a detailed house plan and site analysis. The soil type and the slope and access of the building block have an impact on the cost.

According to Mr Kerschbaum, Tasmanian builders are good at building “boutique” homes. For one-off designs they are very competitive with builders in the mainland states of Australia.

economies of scale

About 2,600 homes are built in Tasmania annually. There are two or three builders in Queensland, NSW, Victoria and WA who would each build more than that number every year, according to Mr Kerschbaum.

Obviously, certain builders on the mainland of Australia, with economies of scale and small profit margins, are able to offer remarkably low prices for project homes. In Tasmania, few houses are bought off a developer’s plan.

labour costs in tasmania

Labour costs in Tasmania are lower. There is a shortage of skilled labour in the construction industry in Australia. The shortage concerns building companies in Tasmania but many artisans seem willing to forego income for the enviable lifestyle that Tasmania has to offer.

what you can expect

For a home built to your specifications (a one-off) expect to pay much the same for building as you would in a city on the mainland, assuming similar site conditions.

For a project-type home (a brick-veneer) you should pay less than in cities like Brisbane, Cairns and Perth. In an article in The Weekend Australian on 21 October 2006 quantity surveyors BMT and Associates were quoted as saying that these were the most expensive cities in which to build project homes. Hobart was the cheapest Australian capital city in which to build, they said. We can assume that this is because of lower labour costs. However, be aware that Tasmanian builders do not build for the mass market and cannot work on such small margins, so don’t expect big savings on the construction cost of your home in Tasmania.

land for sale

Sweeping views of the Derwent River, Hobart city and Mount Wellington.

Fully-serviced suburban blocks, 20 minutes from the CBD, from only $140,000.

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House under construction
Building costs in Tasmania are not higher than in the rest of Australia. However, land prices in Tasmania are generally lower than in the major cities of the mainland.

what is
“a square”?

A square, in building terms, is 9.3 square metres.

building fees in tasmania...

Check definitions and approximate costs of Building and Surveying Fees on the REIT website.

construction cost calculator

BMT & Associates Quantity Surveyors have a basic construction cost calculator on their website.