The Truth About Square Metre Rates: Why They Don’t Tell You the Real Cost of Your Custom Home

If you’ve ever called a builder for a quote and they responded with a “cost per square metre” rate, you’ve probably felt like you were finally getting some clarity. But here’s the truth: square metre rates don’t reflect the real cost of building your custom home.

They’re marketing bait. Nothing more.

Every custom home is unique—your land, your design, your selections, and even the services that connect to your block all affect the final cost. A builder who throws out a square metre figure without factoring these things in isn’t quoting. They’re guessing.

Here’s why that number is misleading:

1. Your Site Matters. A block with slope, rock, or tricky access will cost more to build on than a flat, standard block. Square metre rates don’t account for this.

2. Your Design Drives Cost. A simple single-storey design will never cost the same as a luxury two-storey home with custom finishes. But square metre rates treat them as equal.

3. Your Selections Change Everything. Tiles, benchtops, fixtures, lighting—it’s your personal choices that make your house a home. These aren’t captured in a generic square metre number.

4. Your Services Aren’t Free. Connecting water, sewer, stormwater, power, and NBN often requires work outside your boundary. Many builders won’t mention this until later, but the costs are real.

That’s why if you want an accurate picture, you need more than a square metre rate—you need a builder who digs into the details. Whether you’re working with a Sydney custom home builder, a duplex builder NSW, or a luxury home builder in Sydney, the only way to know the true cost is to go through a proper planning and pricing process.

At Neogen Homes, we don’t guess, we guide. We take into account your site, your goals, and your selections before giving you a fixed-price proposal. That way, you know exactly what you’re committing to—no surprises, no vague rates, just clarity.

Ready to discover the real cost of your custom home? Get your Free Custom Home Discovery Session by DMing us on Instagram today.