Yahoo Finance Million-dollar mansions: The suburbs spending the most on a new home
If you’re looking to build a cheap home, you’ll be out of place in Toorak, Melbourne, but very comfortable Western Sydney, new research has revealed.
When it comes to the cheapest homes built in the country, Western Sydney suburbs dominate, with their cheaper land value taking the edge off an expensive housing market, research from realestate.com.au has revealed.
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Cheapest suburbs to build a new home
In Western Sydney’s Erskine Park, it would take an average $113,164 to build a new home in 2019 – 18.5 per cent cheaper than it did in 2018.
And in Glendenning and Dean Park, building a new home will set you back an average $128,518 – although that’s 18.9 per cent more expensive than it was in 2018.
“While homes being built at low cost is good news for affordability, it isn’t great if low cost leads to poorer quality,” said realestate.com.au’s chief economist, Nerida Conisbee in the research note today.
“Fortunately, this doesn’t seem to be an issue in the new house and land development suburbs of Sydney, however, continues to be problematic for a number of apartment buildings built over the past five years.”
Most expensive suburbs to build a new home
At the other end of the spectrum, the average new home built in Toorak in Melbourne, Victoria will cost $3.7 million, although that reflects a 11.2 per cent drop in expense from 2018, when the cost of building was $4.1 million.
The next-most expensive place to build in Australia is Sydney’s Vaucluse, Watsons Bay and Rose Bay suburbs. There, the average price to build costs $2.9 million, up 24.1 per cent since last year.
“It is likely that the amount spent on luxury new homes will continue to remain high,” Conisbee said.
“A lack of stock in premium suburbs is likely to encourage more people in these suburbs to either knock down/rebuild or renovate. Also, the extremely high stamp duty payable to buy a home in these suburbs would also be a deterrent.
“Low interest rates would also help many people looking to build or renovate get the funds that they need,” she added.
Among the suburbs with the most expensive building costs, Melbourne suburbs were highly represented, with Double Bay, Bellevue Hill and Mosman among the few Sydney suburbs to make the list.
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