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Cremer Construction

Understanding Square Metre Rates: What Homeowners Should Know

Updated: Feb 21

Measuring a set of a construction plans

Are you familiar with square metre rates in home construction? While they may seem like a convenient way to estimate costs, there's more to consider than meets the eye.

Clients often enquire about what constitutes a "good" square metre rate, but the answer isn't straightforward. It depends on various factors, such as the shape and design of the house. For example, a square house with a 100m² area may have different costs than a rectangular house with the same area due to differences in perimeter length.

For instance:

  • A square house with a 100m² area has 40 metres of external walls.

  • A rectangular house with the same area can have 58 metres of external walls.

Understanding the ratio between the perimeter and total floor area is crucial. Unusual designs can skew this ratio, leading to unexpectedly high costs per square metre.

Site conditions also play a pivotal role. Unless your site is flat and stable, custom-engineered designs are necessary, impacting costs beyond the standard square metre rate.

Furthermore, every house is unique, and your choices in amenities can influence the square metre rate. What's included in the rate isn't always clear, raising questions about essential costs like landscaping or service connections.

So, when should you use a square metre rate? It's best reserved for the feasibility stage as a ballpark figure to gauge project viability. For accurate estimates, rely on concept plans and preliminary assessments tailored to your specific design and site conditions.

Square metre rates may lack clarity and confidence, serving more as a statistic than an accurate cost estimation method. Instead, opt for detailed estimates based on comprehensive assessments of your project requirements.

Ready to learn more about estimating your construction costs accurately? Contact us at or visit for personalised assistance.

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