How much does it cost to build a 2 storey house in Perth?

The cost of building a 2 storey house in Perth depends on many factors.

The size of the dwelling is one factor which affects the cost. A larger dwelling will require more materials and labour, and thus it will be more expensive than a smaller dwelling.

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The location of the property is another important factor that determines the cost of your home. Specifically, is it in the Perth metro area? An example being that if you are building in the Perth Hills area, it is more time consuming to get trades and supplies up there.

It also means the block is sloped as opposed to flat, so siteworks will generally be greater.

The quality of fixtures and fittings also play a major role regarding the costs of a home. For example, if you want to install high-quality fixtures and fittings such as marble countertops, then it will increase your construction costs compared to a less luxurious benchtop. The same applies to all fixtures and fittings in your home, like door handles and doors, windows, taps, sinks, ovens etc.

So to determine how much it costs to build a 2 storey house in Perth, let’s first consider a few external factors as a result of the Covid-19 pandemic from 2020 to 2022.

How COVID-19 has impacted costs when building a house

The COVID-19 virus has caused a lot of problems for Australia. The construction industry is one of the worst affected sectors. With border closures and government restrictions, material and labour shortages, building a new home is not an easy task. This of course is true for single storey homes as well as 2 storey homes.

The Australian government has imposed heavy restrictions on what can and cannot be imported from other countries, which lead to a shortage of supply throughout the country. Therefore building costs as well as the time it takes to complete the construction have significantly increased.

What the recent government stimulus has done to building costs

The recent government stimulus has done a lot for building costs. The federal grants as well as state grants have been used to support the housing sector, particularly for new home builders.

There were two types of government grants available for people in Western Australia:

1) for new homes and

2) for existing homes.

The stimulus has helped both types of home builders by providing grants to help cover the cost of building a new home or renovating and/or extending an existing one.

As a result, demand for new homes has increased drastically and caused significant price increases for materials and labour. A 2 storey home uses more materials than a single storey home, so the price increases are accordingly higher as well.

Whether or not the Australian government has done the right thing at the time seems now questionable as many building companies did not survive the pandemic years due to increased construction costs that they were unable to pass on the the client. However it is not for us to pass judgement on political decision in this forum.

Breakdown of the building costs of a double storey home

In 2021-22 the cost of building a 2 storey house in Perth varies depending on the size, shape and design. The average cost for a double storey house is $1700 - $2500 per square metre.

The cost for a 2 storey house via a home building company will include the following:

  1. Siteworks
  2. Construction

There will also be additional costs after the keys are handed over such as landscaping, fencing, floor coverings, window treatments - unless these costs are included in the original builder contract.

Conclusion: Cost to build a 2 Storey Home in Perth

There's been a spike in the cost of constructing buildings in WA recently. This is due to an increase in factors like energy and material costs, which have gone up as well as labour shortages due to the COVID-19 pandemic of 2020 - 2022.

According to industry bodies the average cost to build a 2 storey house in Perth is anywhere between $1700 - $2500 per square metre.