How Much Does It Cost to Build a Duplex – A 2024 Guide

How Much Does It Cost to Build a Duplex

Planning to build your next home is not an easy feat. There are many things to consider, one of them being the type of property you want to develop. A popular choice nowadays is a duplex in Australia.

So how much does it cost to build a duplex in Australia, and is it worth the money? 

We have all the answers with a few additional tips in this article. 

What Is a Duplex?

A Duplex is a single residential building with two dwellings on one block of land. The two living spaces of the duplex share a dividing wall but have separate entrances, yards, parking lots and amenities. Duplexes are considered dual occupancy properties.

The duplex can have two units under one or two titles. Some duplex properties can be subdivided in Australia, meaning each dwelling can get a Torrens title unit. In real estate, a property owner can sell two units independently if a duplex has two separate titles. Before building a duplex, remember that not all Australian councils allow duplex subdividing

According to most Australian planning regulations, construction companies can build duplexes with one higher unit and a street frontage. Duplexes are a popular choice as a residence for multiple families, rental and investment properties.

How Much Does It Cost to Build a Duplex?

On average, you can build your duplex in Australia with a minimum of $550,000, or it can cost you up to $1.3 million. This price range includes only the cost of building a duplex without the expenses associated with the land purchase.

The average costs associated with duplex construction can vary depending on the location. To illustrate, let’s see how much it is to build a duplex in the most prominent Australian cities:

  • The cost of building a duplex in Melbourne is between $650,000 and $1 million.
  • The duplex construction cost in Sydney can be from $600,000 to $1.2 million.
  • The cost of building a duplex in Canberra ranges between $550,00 and $1.1 million.

Note: If you already have land with existing property and want to build a duplex instead, you’ll have to knock down the old property first. The knockdown and rebuild duplex cost in Australia can be between $560,000 and $1.33 million, including the house demolition process, which ranges between $12,000 and $40,000

In most cases, duplex homes are more affordable than standalone houses meaning you can purchase a property in your desired neighbourhood without straining your budget. Also, duplexes tend to have higher resale prices compared to individual homes. 

Duplexes are an excellent opportunity to make some extra money

You have to know how to use it. Being an owner of a duplex, you can:

  • Live in one unit, sell the other,
  • Live in one unit, rent the other,
  • Sell both units,
  • Rent both units,
  • Keep one unit for you and have your children or other family members live in the other one.

Lastly, suppose you decide to build a duplex in Australia. In that case, you can get over $150,000 worth of instant equity in a period shorter than a year

On the other hand, duplex homes have higher holding costs, including interest, council rates, loss of rent and land tax. 

Further reading: How Much Is Land Tax in NSW

Types of Duplex Homes

Before building a duplex home, consider the different types of buildings to find the most suitable one according to your living arrangements. 

First of all, when looking into the variations of duplex constructions, we can notice two types of duplex homes; front and behind and side-by-side duplexes.

  • In front and behind the duplex is when one dwelling is behind the other. This type of duplex is also called a battleaxe block duplex.
  • The side-by-side duplex is considered the two house units next to each other.

Furthermore, the types of duplex homes in Australia can differ according to how they are divided and whether they are multistory houses

  • Single-storey duplex: a one-storey duplex with separated units by a vertical wall in the middle. 
  • Two-storey duplex: duplex with two storeys where the dwellings are separated by a vertical wall.
  • Horizontally-divided duplex: the division is with a horizontal line where one unit is on the upper and the other on the lower floor.

Finally, there is a duplex and triplex house development. As the name suggests, they differ by the number of units, and the triplex has three separate dwellings.

Factors Influencing the Duplex Building Costs

The final cost to build a duplex depends on your individual preferences.

What are the main factors influencing your expenses when building a duplex?

Location

One of the main factors determining the duplex price is the location. Before you choose the place of your future home or investment, ensure the local council allows building a duplex

When you are seeking a suitable area, have in mind:

  • The population growth of the region,
  • Facilities and amenities in the neighbourhood,
  • Infrastructure,
  • Rental demand.

Land 

Once you pick the location, it will be time to choose a land. The first step of this phase would be doing surveys and reports to learn more about the land’s condition. According to the block of land in question, you can plan your rock removal, slab upgrading and retaining walls costs.

Your land costs will also depend on its width, permit conditions and local council zoning. If you buy land in a location with a high demand for land, you’ll probably have higher building expenses. 

The Cost Of Building Materials And Labor

Every material, starting from the frame and up to the countertops, will affect your building costs. Choose durable materials so you don’t find yourself in a situation where you have to do significant renovations often, like restumping your house. Also, choosing materials that will match your house design is essential.

Australia has materials and a skilled labour shortage, so building a home will be more expensive. 

The Size Of The Build

Understandably, the size of the building will directly impact every stage of the building process, including materials, building time, the number of workers and needed land size. Consider making a good floor layout plan and using your space ultimately. Consider your living arrangements and see how many rooms will be enough for comfortable living. More importantly, do not build a bigger house than you need.

Contractors and Architects

The bigger the experience and skill set of contractors and architects, the higher charges you will have to cover. Both have a vital role in the process of building your house. Architects take care of the floor plan, design, outline measurements of the duplex, create graphic design, take care of building permits etc.

On the other side, contractors are responsible for getting workers, subcontractors, looking for materials, and getting work permits, among many other things.

Pros and Cons of Building a Duplex

Building and living in a duplex have a fair share of advantages and disadvantages. 

PROS:

  • Steady investment and high-value growth
  • Low building and maintenance costs
  • Suitable for beginner real estate investors
    Possibility of renting one or both units
  • Two homes in one place
  • Provides privacy for multiple-family homes
    Instant loan repayment assistance
  • Maximising the potential of the land without additional expenses

CONS:

  • Not all councils allow building duplexes
  • Limiting the house space and privacy
  • Must be built on a right size block
  • Require appropriate zoning for subdivision
    Proximity to the neighbours
  • Neighbours’ approval is needed for renovation or construction

Bottom Line

So what are your thoughts? Do you think building a duplex is a steady investment, or do you consider it double the trouble? After all, with all the features duplex homes offer, they are generally a low-cost and practical type of house for living.

FAQs:

1.Does duplex cost more?

The duplex cost is lower than building a standalone house in Australia, mainly because the land needed for a duplex is smaller, and you’ll save money on land costs. Additionally, duplexes are cheaper properties in premium suburbs and other urban areas.

2.Are there duplexes in Australia?

Yes, Australia has duplex households.  

3.How much does it cost to build a duplex in Victoria?

If you want to build a duplex in Melbourne, Victoria, you should expect house building expenses ranging from $650,000 to $1 million. 

4.How much does it cost to build a duplex in Sydney in 2022?

The cost of building a duplex in Sydney is from $600,000 to $1.2 million.

Leave a Reply

Your email address will not be published. Required fields are marked *