Why it's more expensive to build inner city than estate builds

  • Article by: Samara Amadi @ homeshelf

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Do you know why it's more expensive to build a new home in a built up area, rather than in a land estate?
Here's a few reasons we have found from talking with builders in Australia.

Why a new build is more affordable in a land estate


Inner city areas have more limitations with site access, deliveries and traffic issues. The builder will have to assess your build location to determine if there are any issues that will arise during construction and there may be extra costs involved, especially if permits are required.

build inner city
Source: Pinterest


In estate areas there's likely to be multiple builds and trades in the same area so they can easily go from one job to another. This can reduce the time for multiple jobs to be finished and having local trades is a big advantage. Although a builder may travel to your location it's best to use a builder that is frequently building in your area.  


Difficult soil conditions, drainage issues, and any slope on the site can all affect the overall site cost. Majority of land estates are prepared so there are minimal site costs involved. There are some exceptions, especially with estates in sloping areas.

Cut and fill sloping block new build
Source: Building on sloping block


Most estate blocks suit standard size plans. If a standard plan doesn't fit then a custom plan needs to be designed.


There are less builders competing in the inner-city suburbs to have the 'cheapest' pricing. With more competition in land estates, builders frequently offer specials to stand out from the crowd. 

New build special Sherridon Homes
Source: Sherridon Homes 


Choosing the best suited new home builder

At homeshelf we spend a lot of time talking with builders, discovering their particular strengths and what point of difference they can offer. ⁣

Some specialize in knockdown rebuilds, modern, contemporary or classic designs, custom plans for an irregular block or inner city block, sloping block split level plans, affordable house & land packages in land estates or turnkey pricing.⁣

We then use this info to help arrange the best-suited builders to suit your unique requirements for your upcoming build. ⁣


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Published: 25/01/2021
Author: Samara Amadi
Company: homeshelf