This document provides a high-level overview of estimated house costs. Actual costs, timelines and outcomes may differ significantly. This is for planning purposes only and is not financial, tax or investment advice. Nothing here is exact or guaranteed. All figures are based on assumptions and estimates, subject to change with market conditions, lender requirements, construction costs and interest rates. Consult qualified financial advisers, accountants and legal professionals before making any financial decisions.
Executive summary
Land, build, stamp duty, after-handover works and interest to handover
From savings
80% of land and build
After handover, P&I at 6.32%
A four-bedroom single-storey project home on a 420 m² (14 m frontage) lot in a new estate release. Land settles first, the building contract starts about three months later, and the house takes about eight months, with handover in month 11.
Cost breakdown
| Land (420 m², 14 m frontage) | $589,000 |
| House, including about $110,000 of upgrades | $466,000 |
| Stamp duty (Queensland, investor) | $19,530 |
| After-handover works: driveway, fencing, landscaping, garage epoxy, letterbox | $50,000 |
| Interest until handover | $32,998 |
| Total investment | $1,157,528 |
Funding
| Savings | Loan | |
|---|---|---|
| Land (20% deposit / 80% loan) | $117,800 | $471,200 |
| Stamp duty | $19,530 | — |
| Build (deposit and base from savings, rest drawn in stages) | $93,200 | $372,800 |
| After-handover works | $50,000 | — |
| Total | $280,530 | $844,000 |
Interest during construction ($32,998) is paid monthly on top of this.
What land costs now
Median prices for residential lots, mostly in greenfield estates. Lot sizes are shrinking while the price per square metre keeps rising.
| Market | Median lot | Lot size | Per m² | Year | Period |
|---|---|---|---|---|---|
| Australia (all) | $403,570 | — | — | +8.7% | Mar qtr 2026 |
| Capital cities | $444,100 | — | — | — | Mar qtr 2026 |
| Capital cities (Australian Government, NHSAC) | — | — | $1,161 | +8.1% | Sep qtr 2025 |
| South-east Queensland | $498,400 | 420 m² | $1,187 | +27.5% | Dec qtr 2025 |
| Logan (SEQ) | $462,000 | — | — | +23.1% | Dec qtr 2025 |
| Ipswich (SEQ) | $465,000 | — | — | +26.4% | Dec qtr 2025 |
| Moreton Bay (SEQ) | $524,450 | — | — | +26.7% | Dec qtr 2025 |
| Melbourne | $407,000 | 358 m² | $1,148 | +4.4% | Mar qtr 2026 |
| Adelaide | $355,000 | 340 m² | $1,038 | +14.1% | Mar qtr 2026 |
Current estate prices
| Where | Lot | Price | Source |
|---|---|---|---|
| Brisbane's south-west (Logan), new release | 300 m² (10 m frontage) | from $515,000 | Developer price guide, Sep 2026 |
| Brisbane's south-west (Logan), new release | 420 m² (14 m frontage) | from $589,000 | Developer price guide, Sep 2026 |
| Brisbane's south-west (Logan), new release | 480 m² (16 m frontage) | from $610,000 | Developer price guide, Sep 2026 |
| Melbourne's west, titled lot | 392 m² (14 m frontage) | $440,000–$460,000 | Listing, Sep 2026; estate offering $20,000 off titled land |
The Australian Government's National Housing Supply and Affordability Council describes land supply as a binding constraint on new home building: greenfield lot sales in 2025 stayed below the pre-pandemic average while prices set records. Forecasters now expect land prices to keep rising in south-east Queensland, Perth and Adelaide, and to stay soft in Sydney and Melbourne until rates stabilise.
Who pays each stage
Queensland HIA contracts split the build price into six progress payments. With an 80% construction loan, the first 20% (deposit and base) usually comes from savings, and the bank funds the rest as each stage is certified. Amounts are for the $466,000 build.
| Stage | Share | Amount | Paid by | Month |
|---|---|---|---|---|
| Deposit | 5% | $23,300 | Your savings | 3 |
| Base (slab) | 15% | $69,900 | Your savings | 4 |
| Frame | 20% | $93,200 | Bank | 6 |
| Enclosed (lock-up) | 25% | $116,500 | Bank | 8 |
| Fixing | 20% | $93,200 | Bank | 10 |
| Practical completion | 15% | $69,900 | Bank | 11 |
Months are counted from land settlement. Handover is month 11.
Interest while you build
Interest is charged on the land loan from settlement, and on each construction drawdown only from the day it is paid. Construction loans are normally interest-only until handover.
| Rate | On the land loan | On the build | Total to handover |
|---|---|---|---|
| 6.00%Nov 2025 assumption | $25,916 | $4,544 | $30,460 |
| 6.50%Today, interest-only | $28,076 | $4,922 | $32,998 |
| 7.00%If rates rise another 0.5% | $30,235 | $5,301 | $35,536 |
The land loan is the larger cost: it accrues interest for all eleven months while the house is still being built. Every month between land settlement and the build start adds about $2,552 at today's rate.
Repayments after handover
At handover the $844,000 loan becomes principal-and-interest over 30 years.
| Rate | Monthly | Yearly |
|---|---|---|
| 6.00% | $5,060 | $60,720 |
| 6.32%Today, investor P&I average | $5,235 | $62,820 |
| 6.82% | $5,513 | $66,156 |
| 7.00% | $5,615 | $67,380 |
Inflation is still above the Reserve Bank's 2–3% target (3.5% headline, 3.6% trimmed mean), and markets are pricing in one more rise in 2026, with cuts not expected before the second half of 2027.
Compared with November 2025
The same house, block size and after-handover works as first planned in November 2025, when the land was about $475,000. Land, build prices and interest rates have moved since.
| Nov 2025 | Sep 2026 | Change | |
|---|---|---|---|
| Land (420 m², 14 m frontage) | $475,000 | $589,000 | +$114,000 |
| House, including about $110,000 of upgrades | $440,000 | $466,000 | +$26,000 |
| Stamp duty (Queensland, investor) | $15,050 | $19,530 | +$4,480 |
| After-handover works: driveway, fencing, landscaping, garage epoxy, letterbox | $50,000 | $50,000 | +$0 |
| Interest until handover | $25,190 | $32,998 | +$7,808 |
| Total | $1,005,240 | $1,157,528 | +$152,288 |
| Cash from savings | $248,050 | $280,530 | +$32,480 |
| Borrowed (80% of land and build) | $732,000 | $844,000 | +$112,000 |
| Monthly repayment after handover | $4,389 | $5,235 | +$846 |
Of the $152,288 increase, $114,000 is the land. The November 2025 figure of $475,000 was close to the median lot in the area at the time; a comparable 14 m lot in a new estate release is now priced from $589,000.
Rates used: 6.0% in Nov 2025 (the original assumption). Sep 2026: 6.5% interest-only during the build and 6.32% principal-and-interest after handover, the average rates on new investor loans in July 2026. Build price re-quoted at the 5.9% annual rise in house construction prices.
Costs that are easy to miss
- Council rates on the land from settlement: about $400–$600 a quarter
- Building insurance during construction: about $500–$800
- Utility connections (water, power, gas): about $2,000–$5,000
- Conveyancing and legal fees: about $2,000–$3,000
- Variations and price adjustments after the contract is signed
- Extra interest if the build runs late: about $4,572 a month once the full loan is drawn
What to watch
- The gap between land settlement and the build start
- Whether your lender has the stage invoice, photos and certificate it needs, so drawdowns are not held up
- Rate decisions during the build: construction loans are usually variable
- A buffer in savings for variations and after-handover works, which the construction loan will not cover
Sources
- HIA–Cotality Residential Land Report (via HIA, 6 Aug 2026)
- HIA–Cotality capital-city figures, Mar qtr 2026 (Melbourne, Adelaide)
- National Housing Supply and Affordability Council: State of the Housing System 2026 (Australian Government)
- Oliver Hume: South East Queensland land prices, Dec qtr 2025
- Oliver Hume: Land Index & Residential Outlook, Jun qtr 2026
- Queensland Revenue Office: transfer duty rates
- Reserve Bank of Australia: cash rate target
- Reserve Bank of Australia: lending rates (table F6)
- ABS: Consumer Price Index, July 2026
- ABS: Producer Price Indexes, June quarter 2026
Estate prices come from developer price guides and listings viewed in September 2026 and are shown without estate names. This is a general worked example for planning, not financial, tax or investment advice. Figures are rounded, include GST and are based on assumptions that will differ from any real build. Lender terms, duty concessions and council fees vary. Speak to a qualified adviser before making decisions.
Everything on this page is for educational and informational purposes only. Costs, prices, interest rates, rules and government schemes change over time, and the figures shown are approximate examples that may already be out of date. Nothing here is financial, tax, legal, building or professional advice, a recommendation or a quote. Do your own research, get written quotes and seek advice from qualified professionals before making any decision.