How much does it cost to build a house in South Africa? Figuring out the cost of constructing a house or acquiring one is stressful since the market rates keep fluctuating. As a result, it is prudent to determine a realistic budget before embarking on the project. So, what is the building cost in South Africa?
How much does it cost to build a house in South Africa 2021? Building costs in South Africa vary from a city, province or suburb. Establishing a suitable construction site is a crucial factor that significantly impacts the overall cost of building a house in South Africa. The site directly impacts factors such as the cost of construction material, equipment and labour. If you are on this journey, you might want to read on for expounded details on the subject.
How do I estimate the cost of building a house?
Most people are desperate to own a home. Some might argue on the means of acquisition; hence, the question is, is it cheaper to buy or build? Location plays a significant role in determining the cost in both cases. For instance, a house in an urban area would cost more than a rural area.
How much does it cost to build a house from scratch in South Africa?
The building cost South Africa is a quotient of the total building expenses and the size of the structure. However, it is a fraction of the value of the project since it does not include expenses like professional fees, the value of land, council planning approvals, municipal rate and service costs and electrical connection charges. If you intend to rent and build, you will incur additional NHBRC charges.
Cost of building in South Africa
Following the successful acquisition of land, start by highlighting all the likely costs in your financial plan. Some critical elements of the budget are building expenses and professional fees, which change reasonably depending on the scale of your construction. Discussed are some essential expenses you should consider if you are looking for the cheapest way to build a house in South Africa.
1. Professional fees
To complete your project, you will require an architect to develop the structure's design and a quantity surveyor to quantify the quantity of material. Other relevant professionals include a structural engineer, an electrician, and an interior designer. Professional fees range from one person to the other.
2. House building expenses
How much do you need to build a house in South Africa? The construction index determines the overall value of building a house in South Africa. The construction index is a factor that determines an increase or decrease in the worth of equipment, construction materials, and labour in a particular location.
The building material price index is also known as the Construction Input Price Index (CIPI). It determines the price of construction materials according to STATSSA. For instance, the CIPI in South Africa in December 2019 was 111.8%, and in February 2020, it was 115.7%. In February 2021, it rose to 123.4%. Therefore, we can conclude that there has been a consistent rise in the cost of construction materials in South Africa.
Skilled and unskilled labour costs account for the overall building costs in South Africa. Practically, between 2019 and 2021, there has been a steady rise in the hourly wage rates for skilled and unskilled labour. In 2020, the minimum wage for unskilled construction workers was R22.47 per hour and R39.13 per hour for artisans.
3. Construction cost
The architectural design determines the size of the structure. Specifications of the construction design and materials by the structural engineer ultimately determine how much you will spend on construction. Moreover, local municipalities or town and city councils also have laws that regulate the type of house you can construct. According to the town planning laws, you cannot build a house wherever you like.
On average, the cost of building a conventional suburb house in the major centres in South Africa ranges between R10,000 to R15,000 per square metre. The fee can increase to R25,000 for a luxury house.
4. Specialist items and PC amounts
PC amounts comprise financial allowances covering unconfirmed details during the allocation of tender to a contractor. Such items include a specified rate for every square meter. On the other hand, specialist items are excluded by the main contractor. These include essential items such as cupboards, light fittings, kitchen and bathroom fittings, and other accessories. The PC amount, alternatively called the prime cost, should be inclusive in every one of these items to give realistic building expenses.
How much does it cost to build a 3 bedroom house in South Africa?
Three bedroomed houses are among the bestselling house plans in South Africa. For this reason, it is helpful to underscore its building expense to help your make sufficient preparations ahead of starting the project.
So, what is the average cost to build a 3 bedroom house? On average, a 3 bedroom house can sit on a 110 to 120 square metre area. Therefore, for a conventional suburb house, the cost may vary between R1,200,000 to R1,800,000. This figure may vary depending on the location, budget, design, etc.
Is it cheaper to buy or build?
While most people might consider buying instead of building a house, whether you get value for your money is relative. The price per square metre is comparable; hence, most people think it is cheaper to buy instead of build. However, if the market is not offering what you want, you can build your house according to your specifications.
The South African real estate market is stable; therefore, it continues to favour cost-friendly constructions. The puzzle regarding how much does it cost to build a house in South Africa calls for a critical analysis of impending factors such as quality, actual site construction, design details, and building complexity before assessing accurate projections of construction expenses. With this information, you will be better placed to estimate the building costs South Africa per square metre 2021.
DISCLAIMER: While we make every effort to provide you with the most accurate, up-to-date information, all costs in this article are subject to change at any time. This article is intended for general informational purposes only and does not address individual circumstances. It should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
If you are thinking of building a house, this list of the most expensive celebrity houses will come in handy in inspiring you about the best designs. You could borrow a thing or two from the styles.
Source: Briefly News