Thinking about building your dream home on the Mornington Peninsula, but unsure what it’ll cost you?

I get it. Building a custom home isn’t exactly easy on the wallet. And as someone who’s spent years helping homeowners navigate their dream projects, I’ve seen firsthand how quickly costs can creep up.

What’s Driving Custom Home Costs on the Mornington Peninsula?

Firstly, the Mornington Peninsula isn’t like building just anywhere. You’re paying for lifestyle, premium materials, and specialised expertise—especially if your block has a tricky slope or bushfire risks. These elements can significantly impact your overall cost. For example, additional site preparation due to slope or bushfire compliance often adds tens of thousands to budgets. It’s something I’ve seen frequently with projects I’ve managed over the years.

To give you a rough idea, average construction costs in Australia have increased significantly post-pandemic. In fact, home building costs are now around 40% higher compared to pre-pandemic levels.

If you’re curious about specifics for your project, you can always get in touch with me directly, and we can talk through your requirements.

Breaking Down the Costs

Let’s get real—building your dream home involves more than just bricks and mortar. You’ve got architectural design, permits, builder margins, materials, landscaping, and more. But where exactly does your money go?

1. Site Preparation: This is where surprises often lurk. Clearing, excavation, and grading can quickly add thousands to your budget, especially with challenging terrain. Expect costs to start from $10,000 and easily exceed $50,000 for more complex blocks.
2. Design & Permits: Working with a skilled architect or draftsman typically ranges from $15,000 to $40,000. Council permits, compliance checks, and engineering reports will add another $5,000–$10,000.
3. Builder’s Margins: This covers overhead, supervision, and profit—typically around 15–25% of your overall build cost.
4. Materials & Finishes: High-quality materials suitable for coastal and bushfire zones typically cost more. Budget from $1,800 to $3,500 per square metre, depending on the quality you choose. Here’s a handy calculator to give you a more precise idea.
5. Landscaping: It’s easy to underestimate landscaping, but it can easily range between $10,000–$50,000 depending on your vision and the size of your land.

If you’d like a detailed breakdown tailored to your block, you might find our article on three things you must consider when building here useful.

Is it Worth Building Custom?

Building custom is undeniably pricier than standard builds. But here’s why homeowners on the Mornington Peninsula still do it—you’re creating a home that matches your lifestyle perfectly. You’re not stuck with generic designs or compromising on features important to you.

But affordability concerns are real. Over the past decade, properties here saw about a 6% annual capital growth rate, though recent growth has slowed. And property prices did dip slightly last year, making some people hesitant. But the Peninsula isn’t about speculative investment. It’s about lifestyle, family, and comfort.

I’ve seen many clients realise their dreams despite these challenges, and most don’t regret investing in a home tailored exactly to their needs. If you’re considering your own custom home, understanding common pitfalls can save you headaches down the line—take a look at our article on common mistakes to avoid.

The Realistic Picture from Someone Who’s Been There

Building your home is exciting, but I’d be lying if I said it didn’t also come with stress. Budgeting carefully and realistically is key. Even better, having an experienced builder guide you can make a huge difference.

It’s understandable why some wonder if affordable holiday homes on the Peninsula will ever become a reality. Careers and lifestyle amenities significantly influence decisions to build here, as noted by many conversations I’ve had. Quality health care and employment opportunities matter as much as build costs for many families.

If you want more insight into current Australian construction market conditions, this recent report provides solid context.

Ultimately, building custom isn’t about chasing the cheapest deal. It’s about building a space where you’ll spend years making memories. If you’re ready to talk specifics or just explore your options, I’m here to help you navigate the process. Let’s make your Peninsula dream home a reality.

Get in touch today, and let’s start planning together.