How Much Does It Cost to Build a Custom Home in Geelong in 2026?
If you’re thinking about building a custom home in Geelong this year, one of the first big questions is cost. It’s a fair question and one that doesn’t always come with a simple answer.
At Derbyshire, we design and build homes across Geelong, the Surf Coast, and the Bellarine Peninsula, so we understand how much location, site conditions, and design choices can impact your budget.
In this post, we’ll walk you through the key factors that affect the cost of a custom build, give you some realistic 2026 estimates, and share how we help stretch your budget further without compromising on quality.
What currently affects the cost to build, and how is this impacting people’s decisions?
To better understand what is happening across the industry, we recently had a chat with Peter Henderson from PDH Estimating. Peter provides estimating services for a number of builders across Geelong and Australia-wide, so he has a clear view of how construction costs are shifting and how people are responding.
When Peter first started estimating around 20 years ago, a standard family home could be built for approximately $180,000. Today, that same type of home is more likely to cost between $700,000 and $800,000.
The main factors currently driving construction costs are concrete, steel and labour. These make up significant portions of a build cost, so when prices rise in these areas, the overall impact can be substantial.
- Peter has also seen a major shift in the type of work people are choosing to undertake. Renovations used to make up around 20% of his estimating work. Today, they account for closer to 60%. This is a clear indication that rising building costs are influencing the way people approach their homes.
- He also noted that many people are having to adjust their expectations. In some cases, they simply cannot include everything they had originally hoped for in their new home. Choices need to be made, and some parts of the project need to be scaled back or removed to meet the budget. This is happening even in the luxury market, where projects still need to be refined to meet budget expectations.
Peter also predicts that homes will become smaller to meet budgets.
So, what are Derbyshire built homes currently costing?
The family homes we are currently designing and building are generally seeing costs starting from around $800,000+.
At Derbyshire, we are not willing to compromise on quality. And it’s clear when you walk into a Derbyshire home that you can feel the quality of the materials and craftsmanship. It’s true that custom homes are more expensive and often take longer to build than standard homes, but for good reason. They are 100% designed around you, which means the house plans haven’t been drawn up yet and construction isn’t rushed.
The main factors influencing cost include the slope of the land, the number of storeys, the size of the home and the overall complexity of the build. These are some of the biggest cost drivers we are seeing at the moment, but they are not the only ones.
Below is a more detailed look at what can influence the cost of a custom home.
What influences the cost of a custom home?
Size and design complexity
The larger or more detailed your home, the higher the cost. Features such as multiple levels, custom shapes, architectural detailing and complex rooflines all increase labour requirements, material use and construction time. A well-designed custom home does not always need to be bigger. In fact, thoughtful planning can often create a home that feels spacious, functional and beautiful without adding unnecessary square metres.
Materials and finishes
Every selection has an impact on the final cost of your home. For example, bricks can range from around $1.50 each to $8 or more. Across an entire home, that difference adds up quickly. The same applies to flooring, tiles, tapware, cabinetry, cladding, windows and other finishes. This does not mean you need to choose the cheapest option. It means each selection should be considered carefully, with a clear understanding of where it is worth investing and where there may be a better-value alternative.
Site conditions
The block you build on can have a significant impact on cost. Soil type, slope, site access, existing structures, drainage, excavation and engineering requirements can all influence the overall price. More complex sites often require additional work, specialised solutions and more time on site. This is why early advice is so valuable. Understanding your land before you get too far into the design process can help avoid surprises later.
Inclusions and specifications
The inclusions and specifications in your home contribute greatly to the final build cost. Heating and cooling systems, insulation levels, window glazing, joinery, appliances, lighting, cabinetry and outdoor areas all play a role. Higher specifications generally mean a higher upfront investment, but they can also improve comfort, performance and longevity.
Builder efficiency
An experienced builder can make a real difference to how well your budget is used. Clear planning, experienced trades and doing things right the first time can help minimise delays, rework and wasted materials. A lean business structure with fewer unnecessary overheads also means more of your budget goes into your home, rather than being absorbed by extras that do not add value.
How do we help you make the most of your budget?
At Derbyshire, one of our core philosophies is to help you understand where to spend and where to save.
This starts with how you actually live. We take the time to understand which spaces you use most, what matters to your family, and where your budget will have the greatest impact. For example, many people come to us thinking they need a very large living room for entertaining. Sometimes clients request an eight-metre-long living room, but it can be hard to visualise what eight metres actually feels like in real life. Sometimes a room that sounds impressive on paper can feel oversized, make furniture placement difficult, and add unnecessary heating and cooling costs.
Because we have been building homes for 30 years, we understand what sizes work well in real life. This helps us design spaces that feel generous, functional and comfortable without adding cost for the sake of it.
Material selection is another major way we help clients get more from their budget. There are now many products that offer the look of natural materials with lower maintenance and often better value. For example, there are metal exterior cladding products that closely imitate timber for exterior use. They are realistic, hardwearing, high quality and do not require the same level of ongoing maintenance as real timber.
Our interior designer can also help you make smart selections. If you have inspiration images or products you love, such as tiles, tapware or finishes, we can often help find alternatives that achieve a similar look and feel while offering better value.
Most importantly, we design with construction in mind. Because we also build the homes we design, we understand what things actually cost. This means we can guide you through the design process with practical advice, helping you make decisions that align with your budget from the beginning.
Planning a custom home in 2026?
If you are thinking about building a custom home, the best thing you can do is get advice early.
We offer a complimentary 15-minute budget check-in to help you understand what your project may cost before you get too far into the process.
Just let us know where you are building and a few details about your project, and we can give you an initial indication of what you may need to budget.
No obligation. Just helpful advice to get you started.
