How much does it cost to build a house in Hobart?

Based on such figures, building a Hobart home with 120sqm of living space will cost anywhere from $375,151 to $523,757.

Hobart, Tasmania, Australia

This means building an average Tasmanian home could cost anywhere from $456,000 to $1,094,400.

Cost of building a house in Hobart

Perhaps the biggest factor in determining the cost of a house build is the number of bedrooms you choose to include in your floorplan.

This is due to the fact that construction jobs are priced via a per square metre basis and this means bigger homes with more bedrooms will cost more to build. 

Wilson Homes chief executive Tim Ribbons said building a home in Tasmania can often be more expensive than other parts of Australia due to its small trade market, which meant pricing was generally higher than that on the mainland.

“Material pricing is often more expensive due to increased shipping costs to Tasmania,” he said.

“The smaller housing market of 2800 permits on average is significantly smaller then say South Australia at 9000 permits (which) means suppliers purchase less in bulk.

“The market is very custom orientated where builders and suppliers take a ‘one off’ approach rather than a volume approach to reduce costs through design efficacy and repetitive modules of construction which could see a 10-30% saving on items.”

Mr Ribbons said the average floor plan in Hobart would be 160sqm to 180sqm, with an average land size ranging from 450sqm to 550sqm.

Building a three bedroom home in Hobart, based on an average floorplan size of 175sqm will start from $352, 990 to $492,818.

A four-bedroom house build Tasmania, will be priced from $812,828 to $1,134,806 based on a house size of 260sqm.

Meanwhile, a custom architect designed home will have a total build cost of $1,248,807 to $1,743,487.

Cost of building a single storey or two-storey home in Hobart

Building a two-storey home in Hobart typically starts at $400,000, Mr Ribbons said.

And a 131sqm three bedroom one level home, with minimal site costs begins at around $330,000, he said.

“A premium 32 square two storey home would be an $800,000 to $1 million build cost and increase from there depending on the additional inclusions and upgrades a client wanted to specify.”

Adding a second level comes with extra building complexities, which drives up the total cost.

The extra costs include additional external such as scaffolding, staircases, and the need for more complex trades.

Other factors that impact the cost of building a home in Hobart

Land costs, building materials, site topography, custom finishes and weather delays are all elements that can impact the cost of a Hobart new home build.

Land prices

Mr Ribbons said the cost of Hobart land has risen significantly.

“One example is the suburb of Brighton. Where land prices increased from $150,000 before COVID to $350K last year, (are now) down to $330,000 in 2025,” he said.

Land topography

The topography of the land in Tasmania can result in additional costs such as bearers and joists, dropped edge beams, scaffold and retaining walls, Mr Ribbons advised.

Tradesperson availability and supplies

The small trade market on the island state means pricing is generally higher, in part, due to the shipping costs.

Choosing a custom design

As mentioned, the Hobart house build market features more custom designs vs project homes, which benefit from efficiencies as they have been constructed many times, with builders buying the fittings and construction supplies in bulk to save costs.

Planning approval costs

These are additional council-based fees which add to build costs. The more complex the house and build will be, typically means the planning costs will be higher.

Unforeseen delays

No matter where you build in Australia weather conditions – particularly wet weather - can impact the length of a home build, and throw out building timelines.

As also mentioned, Hobart is vulnerable to supply delays as materials are subject to being shipped to the island.

Extras outside of the build cost

When it comes to building a new home, it is important to note that landscaping, paving, driveways, exterior lighting, swimming pools and fencing are extras costs that are not included in the cost of a house build.

Government incentives and grants for new homes 

Below is an outline to the government grants that may be available if you are building a new home in Tasmania.

First Home Owner Grant

This one-off payment is to help first home buyers with a $10,000 grant towards the purchase of their new home.

It is available to people building a new home.

HomeBuilder

This $15,000 allowance is for contracts entered into between January 1 and 31 March 2021; $25,000 for contracts entered into between 4 June and 31 December 2020.

The one-off payment towards building a new home is available to buyers who entered into a contract to build a home between J4 une 2020 and 31 March 2021, and complete their application before 30 June 2025.

To be eligible, the land’s value must be less than $750,000 (including land and contract to build).

And the applicant must earn less than $125,000 as an individual, or $200,000 as a couple.