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How Much Does it Cost to Build a Duplex?

$550,000 - $1.5 million

    Oneflare

    Updated August 6, 2024 |
    6 minute read

    How much does it cost to build a duplex?

    Wondering how much it costs to build a duplex? Duplex homes are becoming more popular, so it’s good to know what to expect financially. Generally, average building costs range between $1,300 to $3,900+ per square metre. You can expect to spend around $550,000 to $1.5 million, excluding land and demolition costs and other factors.

    The average cost to build a duplex in Australia based on location

    Location plays a significant role in determining duplex build costs. Here’s a breakdown of average prices per a few of the major cities:

    City Average reported costs
    Sydney $600,000 – $1.5 million
    Melbourne $650,000 – $1 million
    Canberra $550,000 – $1.1 million

    Factors such as local labour building rates, land availability, local regulations, and market demand contribute to regional differences in the cost to build a duplex property.

    Estimated price for a knockdown rebuild or demolition 

    Demolition costs can vary either by the hour or per square meter. Hourly labour costs typically range from $40 to $65, with potential increases depending on factors like the type of demolition and any hazardous materials involved.

    For a residential building knockdown, you’re looking at a final cost ranging from $10,000 to $30,000. Remember that this expense is separate from the cost to build a duplex house if you’re planning a ‘knockdown-rebuild-duplex’ project.

    Many landowners recycle materials from the demolition to offset some of their costs. Recycling can also speed up the removal process and might even qualify as a tax-deductible donation.

    What are the advantages of building a duplex?

    a contemporary neutral colour duplex house design

    Contemporary duplex house design | Source: iStock

    Strong value growth

    Duplexes stand out as solid investments, promising steady value growth and attractive rental returns over time. They allow you to earn more money than detached residential properties.

    Great for beginner property investors

    Building a duplex offers a smart starting point for those dipping their toes into real estate. With lower construction costs than standalone homes, it’s a low-risk way to build equity. As the duplex appreciates, owners can pocket a tidy profit when it’s time to sell.

    Low maintenance costs

    Embracing duplex living means embracing minimal upkeep. Thanks to their smaller footprint and modest exteriors, maintenance costs are kept in check. Plus, no sprawling yards mean more time for enjoying life, making duplexes an easy choice for retirees or couples without kids.

    Affordable housing

    Those who want to own a home but are on a tight budget can build a duplex as a more affordable option than building a house. Duplexes cost less compared to houses due to their smaller size. Many people who want to live closer to the city also choose to build a duplex.  It’s the fast track to owning a slice of your dream location without breaking the bank.

    Possible source of passive income

    With a duplex, you can generate passive income by renting out one unit while occupying the other. This steady stream of rental income can contribute to your financial stability and even help offset mortgage payments.

    A rendered two-storey duplex in a suburban street at dawn.

    A rendered two-storey duplex. | Source: Mai Designs Sydney

    Factors affecting the cost of building a duplex home

    Unforeseen costs can derail your duplex dream. Understanding the factors affecting the final price upfront helps you determine a realistic budget and avoid surprises when buying materials or hiring contractors.

    a spacious and airy look inside a home

    A light and airy house interior | Source: iStock

    Design complexity

    When it comes to building a duplex property, the complexity of the design can drive up costs. This can include unique floor plans, intricate architectural details or customisations tailored to your vision.

    While these features add character and charm to your duplex, they often require extra time, materials, and skilled labour, bumping up the overall duplex building cost.

    Quality of materials

    Your choice of materials can affect the duplex construction cost. Opting for premium quality finishes, high-end fixtures or sustainable building materials can elevate the look and longevity of your duplex but at a higher price. It’s all about balancing quality and budget to create a beautiful and affordable space.

    Site conditions

    The condition of your building site can impact construction costs. Accessibility, soil quality and terrain can all affect the foundation and site preparation requirements. Dealing with challenging terrain or unstable soil may mean extra work and expenses to ensure a solid foundation for your duplex.

    Regulations and permits

    Meeting building codes and obtaining permits are important, but they come with fees. From permit fees to compliance with zoning regulations, there are expenses associated with staying on the right side of the law.

    Skipping these steps can lead to costly delays or fines, so it’s important to budget for regulatory requirements from the get-go.

    Contractor experience

    Hiring a seasoned contractor may cost more upfront, but it’s an investment worth making. Experienced professionals bring expertise, efficiency, and reliability to the table, minimising the risk of costly mistakes or delays. While it may seem like a splurge, opting for a reputable contractor can save you time, money, and headaches in the long run.

    A modern duplex with a driveway splitting each residence.

    A modern duplex | Source: KDAS Projects Pty Ltd

    Things to consider when building a duplex house

    Before planning your duplex house construction, there are some key things to consider. 

    • Zoning and approvals: To avoid delays, check local regulations and secure necessary permissions early. From setback requirements to height restrictions, zoning laws can dictate the design and placement of your duplex. By ensuring compliance from the outset, you can avoid costly delays and potential legal headaches.
    • Utility connections: Plan for water, electricity, gas, and sewage connections for each unit to ensure seamless service. You may also consider energy-efficient solutions to minimise ongoing utility expenses and enhance sustainability.
    • Shared spaces and amenities: Enhance livability with well-designed common areas and ample parking. Thoughtful landscaping elevates curb appeal and fosters a sense of community among residents.
    • Maintenance planning: Budget for ongoing upkeep, including landscaping and mechanical system servicing, to preserve your investment’s value and functionality.
    • Market trends: Stay ahead of real estate trends by incorporating features that align with evolving demands. Flexible floor plans, eco-friendly amenities, and smart home technology can enhance marketability and resale potential in the long term.

    Tips when hiring a duplex builder

    Finding the right builder is key to your duplex dream. Here’s how to choose wisely:

    • Research and compare. Obtain multiple quotes and thoroughly vet potential builders to ensure transparency and competitive pricing.
    • Check credentials. Verify licencing, certifications and insurance coverage to safeguard against potential liabilities.
    • Prioritise communication. Choose a builder who values open communication and provides regular updates throughout the construction process.
    • Review past projects. Request references and visit completed duplexes to assess the builder’s craftsmanship and attention to detail.
    • Get everything in writing: Establish clear expectations and timelines through a detailed contract to avoid misunderstandings.
    • Ask people that you trust for referrals: Ask about their experience and if they have any complaints or issues with working with the builder.
    • Licencing and qualifications: Ask if the builder is licensed and insured before signing any documents.

    How to save money when hiring a buplex Builder

    • Build during the off-season to lower the duplex building cost.
    • Ask about current or upcoming deals and promotions.
    • Build a smaller duplex with fewer amenities.
    • Hire a newer builder who is starting out in the industry.
    • Request that the duplex be built with cheaper materials to reduce the overall duplex construction cost.

     

    Build your dream duplex home

    Starting a duplex construction venture is an exciting endeavour! However, it requires careful planning and budgeting to ensure success. By understanding the various cost factors, benefits, and considerations outlined here, you’re better equipped to make informed decisions every step of the way. 

    Remember, consulting with experienced professionals is key to turning your duplex vision into reality efficiently. Start your project on the right foot by partnering with trusted experts who can confidently and clearly guide you through the process!

     

    * The cost data is based on Oneflare and third-party sources

    FAQs on building a duplex home

    How long does a duplex take to build?

    A typical build timeframe, from design to full construction, can last 6 to 20 months. A development application significantly influences the expected timeline for a duplex build.

    What is a duplex building in Australia?

    A duplex is a residential home with two apartments separated by a common central wall. These dual units can be on the same piece of land with a single owner who sells them all together, or they can be on different titles and sold as distinct units.

    Is it cheaper to knock down and rebuild or renovate?

    Knocking down and reconstructing is more expensive than renovating, but it may be more cost-effective in the long run. By tearing down the house and starting over, you can repair any underlying structural issues and renovate the building to match your current demands.

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