Construction Costs of a 3-Bedroom Dual Occupancy Dwelling in Victoria, Australia (2025)

This document provides an estimated breakdown of the construction costs for a 3-bedroom dual occupancy dwelling in Victoria, Australia, projected for the year 2025. It includes direct building costs, professional and statutory fees, infrastructure contributions, contingency allowances, and other potential expenses to provide a comprehensive overview of the financial considerations involved in such a project.

Estimated Construction Costs

The following is a breakdown of the estimated costs associated with constructing a 3-bedroom dual occupancy dwelling in Victoria, Australia, in 2025. These figures are based on current market trends and projected increases, but actual costs may vary depending on specific project requirements, location, and contractor selection.

1. Building Construction Cost

• Estimated Cost: $425,000

This represents the core cost of physically constructing the dual occupancy dwelling. It includes:

• Materials: Timber, cladding materials,  concrete, steel, roofing, insulation, windows, doors, fixtures, and fittings.

• Labor: Wages for builders, carpenters, plumbers, electricians, plasterers, painters, and other tradespeople.

• Site Preparation: Excavation, leveling, and any necessary earthworks.

• Finishes: Internal and external finishes, including flooring, tiling, painting, and landscaping.

2. Professional Fees and Statutory Fees

• Estimated Percentage: 17% of Building Construction Cost

• Estimated Cost: $72,250

This category covers the costs associated with engaging various professionals and complying with statutory requirements:

• Design Fees: Design, documentation of all plans, elevations  etc.

• Engineering Fees: Structural, civil, and geotechnical engineering services.

• Surveying Fees: Site surveys and boundary identification.

• Building Permits: Application fees and inspections.

• Planning Permits: Application fees and associated costs for obtaining planning approval.

• Energy Efficiency Assessments: Cost for energy rating assessments and compliance reports.

3. Infrastructure Contributions

• Estimated Percentage: 5-8% of Building Construction Cost

• Estimated Cost: $34,000

These are contributions levied by local councils to fund infrastructure upgrades necessitated by new developments:

• Developer Contributions: Payments towards roads, drainage, parks, and other community facilities.

• Water and Sewerage Connection Fees: Charges for connecting to the water and sewerage network.

4. Contingency

• Estimated Percentage: 5% of Building Construction Cost

• Estimated Cost: $21,250

A contingency fund is essential to cover unforeseen expenses or variations during the construction process:

• Unexpected Site Conditions: Unforeseen soil issues, rock formations, or underground utilities.

• Material Price Increases: Fluctuations in the cost of building materials.

• Design Changes: Modifications to the original design during construction.

• Delays: Weather-related delays or other unforeseen circumstances.

5. Other Potential Costs

In addition to the above, several other potential costs may arise during the construction of a dual occupancy dwelling. These costs can vary significantly depending on the specific project and location.

• Landscaping: While some basic landscaping may be included in the building construction cost, more extensive landscaping can add significantly to the overall project cost. Consider costs for plants, paving, retaining walls, and irrigation systems.

• Fencing: The cost of fencing around the property can vary depending on the type of fencing used.

• Driveway and Paving: The cost of constructing a driveway and any additional paving around the property.

• Legal Fees: Legal costs associated with property transactions, contracts, and dispute resolution.

• Finance Costs: Interest payments on construction loans.

• Insurance: Building insurance during construction.

• Site Management: Costs associated with site security, waste removal, and temporary facilities.

• Demolition Costs: If there is an existing structure on the land that needs to be demolished, this will incur additional costs.

• Service Relocation: Costs associated with relocating existing services such as power lines or gas pipes.

• GST: Goods and Services Tax (GST) is applicable to most construction-related expenses in Australia. This is typically 10% and should be factored into the overall budget.

To estimate the "other costs" a percentage of 7% of the building construction cost will be used.

• Estimated Percentage: 7% of Building Construction Cost

• Estimated Cost: $29,750

Total Estimated Cost

Based on the above breakdown, the total estimated cost for constructing a 3-bedroom dual occupancy dwelling in Victoria, Australia, in 2025 is:

• Building Construction Cost: $425,000

• Professional & Statutory Fees: $72,250

• Infrastructure Contributions: $34,000

• Contingency: $21,250

• Other Costs: $29,750

• Total Estimated Cost: $582,250

Important Considerations

• Location: Construction costs can vary significantly depending on the location within Victoria.

• Design Complexity: Complex designs with custom features will typically cost more than simpler, standard designs.

• Material Selection: The choice of building materials can significantly impact the overall cost.

• Contractor Selection: Obtaining quotes from reputable builders is crucial to ensure competitive pricing.

• Market Fluctuations: Construction costs are subject to market fluctuations, so it's essential to stay informed about current trends.

• Inflation: The figures presented here are based on projected costs for 2025. Inflation can impact the actual costs incurred.

Disclaimer

This document provides a general estimate of construction costs and should not be considered a definitive quote. It is recommended to consult with qualified professionals, such as builders, architects, and engineers, to obtain accurate and tailored cost estimates for your specific project.