It costs between $1860 and $3800 a square metre to build a house in Adelaide, according to recent Australian construction industry research. 

An average-sized home in Adelaide would cost anywhere between $396,924 and $810,920 to build, based on the city-wide average new house size of 213.4sqm. 

This makes Adelaide the cheapest major city in Australia in which to build a home. 

Cost to build a house in Adelaide – per number of bedrooms

One of the most important factors determining how much it will cost you to build a home is simply how many bedrooms you choose to have.

Most construction jobs are quoted “per square metre” and more bedrooms usually means more square metres to build. 

MORE: How much does it cost to build a house in Sydney?

Cost of building a 2-bedroom house in Adelaide

It costs anywhere from  $223,200 to $660,00 to build a standard two-bedroom house in Adelaide, assuming a home that is just 120sqm. 

Adelaide’s new houses tend to be smaller on average than new houses in other Australian capital cities. However, this is substantially less than the citywide average new house size. Most new houses that get built in Adelaide comprise three bedrooms or more. 

Cost of building a 3-bedroom house in Adelaide 

It costs between $325,500 and $456,000 to build a three-bedroom house in Adelaide. That’s based on an average build size of 175sqm.

Cost of building a 4-bedroom house in Adelaide

It usually costs anywhere from $483,600 to $988,000 to build a four-bedroom house in Adelaide, assuming an average house size of 260sqm.

This would be the typical size of a four-bedroom, two-bathroom home. 

Cost of building a 5-bedroom house in Adelaide 

Building a five-bedroom house in Adelaide should cost between $540,000 and $1.14 million for a standard property of 300sqm. 

However, the largest and most luxurious homes, with high-end finishes and custom designs, can cost far more. The sky really is the limit when it comes to how much you can spend on building a prestige home.

MORE: How much does it cost to build a house in Perth?

Most construction jobs are quoted “per square metre” and more bedrooms usually means more square metres to build. Picture: realestate.com.au

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How much does a second storey cost to build in Adelaide?

Building a second storey in Adelaide generally costs around $800 a square metre, although it can cost as much as $1000 a square metre or around an extra 10% to 20% of construction costs (or sometimes even more). 

The extra cost comes from the added difficulty of the build, which usually involves more complex construction methods, such as scaffolding, staircases, and additional external walls.

Building an extra storey generally also means spending more on extra materials, labour and coordination costs. 

Is it cheaper to build or to buy a house in Adelaide?

It can sometimes be cheaper to build a house rather than buying one in Adelaide, especially with house prices in the city rising so rapidly over the past couple of years. 

Several factors will determine whether it’s cheaper to build or buy in your circumstances, including: 

• The value of the land. The average cost of vacant land in Adelaide is $258,560, according to one report. However, this is the 2023 median ‘greenfield’ vacant lot price and you could find you need to pay far more for a quality block close to the city centre. 
• The cost of building. More expensive builds will obviously add more to the overall cost.  
• Stamp duty. Stamp duty in South Australia can be expensive. For instance, buying an established home valued $1 million as your primary place of residence would usually set you back $48,830 in stamp duty. Given that stamp duty is calculated on purchase price – and the cost of buying land tends to be much cheaper than buying an established home – you could make a significant saving by buying land to build. 
• Stamp duty relief. You may be eligible for stamp relief if you’re buying or building your first home. To be eligible for an exemption, you need to be buying a home or vacant land valued at less than $650,000. 
• Other costs. You’ll also need to factor in costs, including building and pest inspections, removalist and conveyancer’s or solicitor’s costs. If you’re building and you need to rent somewhere to live during the building process, you need to factor this in too. 

MORE: How much does it cost to build a house in Brisbane?

Choosing to include things such as custom joinery and specialty finishes can drive up the build price significantly. Picture: realestate.com.au

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What factors affect the cost of building a home in South Australia

The cost to build a home is usually influenced by six key factors.

1. The size of home

Larger homes tend to be more expensive because they require more materials. 

In South Australia, the average size of a new property is 213.4sqm. That’s larger than the average Australian home size of 195.8sqm, according to a Commsec report. However, it’s well below the median build size of new houses in many other Australian cities. 

2. Materials 

Often it’s the cost of materials that has the biggest influence on how much it costs to build a house. 

Choosing to include things such as custom joinery and specialty finishes can drive up the build price significantly. 

3. The site you’re building on

The type of site you’re building on will go some way to determining the build price too. Sloping blocks and difficult sites tend to make a build more expensive because the builder may need to excavate, build retaining walls, and make the build process more complex. 

4. Any delays 

Weather and other delays can have a major effect on the time it takes to complete the build, potentially adding unexpected costs. That’s partly because delays can impact scheduling, making it more difficult to coordinate trades efficiently.

5. How complex your design is  

Project homes tend to be the most affordable way to build. At the other end of the spectrum, custom and bespoke designs can add significantly to cost – especially if they’re drawn up by a well-known architect.

6. Costs outside of the build itself

There are also external costs involved in building a house, including driveway paving, garden landscaping, fencing and often even the cost of a swimming pool. 

MORE: How much does it cost to build a house in Melbourne?

Depending on the heritage of a home and extent of renovation needed, it may be cheaper to knockdown and rebuild, as it provides more certainty in cost upfront than a renovation. Picture: realestate.com.au

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FAQs about building a house in Adelaide 

Here are some of the most common questions people have about building a house in Adelaide. 

What is the cheapest way to build a new house in Adelaide?

The cheapest way to build a new house in Adelaide is using a project home builder. 

That’s because project home builders have a limited range of designs, which means they can take advantage of economies of scale. 

Do I need a contingency buffer? How much should it be?

Yes, you need a contingency buffer when you build a new home. This should be as much as 15% to 20% at the start of the building process, because there are so many unknowns. 

As the build progresses you can probably reduce that build to 5% to 10%. 

How long does it take to build a house in Adelaide?

It usually takes between four months and 12 months to build a house, after you’ve bought the land. 

Is it cheaper to renovate or knock down and rebuild?

Whether it is cheaper to renovate or knockdown rebuild in Adelaide depends on factors such as how difficult the renovation is, and how much of the existing home you can use. 

A knockdown rebuild provides more certainty in cost upfront than a renovation, because you have the opportunity to start from scratch. 

What government grants are available for new homes in Adelaide?

Below are list of some of the more common government grants that may be available if you’re buying a new home in South Australia:

• First Home Buyer Stamp Duty Relief. First home owners pay no stamp duty on land or properties valued up to $650,00. There is no income threshold to qualify for this. 
• First Home Owner Grant. Eligible South Australian buyers can take advantage of a First Home Owner Grant worth $15,000 if they buy or build a new home.  
• HomeBuilder. HomeBuilder provided a $25,000 grant towards new houses for eligible contracts entered into between 4 June 2020 and 31 December 2020 and $15,000 for new contracts entered into between 1 January 2021 and 31 March 2021. The HomeBuilder Grant does not apply to contracts entered into after this date. However, the deadline for submitting a claim for the grant has been extended to 30 June 2025.

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