Why Square Metre Rates Dont Work



When choosing a builder, many people are tempted to compare the square metre rate. Let us give you 2 reasons why this is impossible to do.

Reason #1:

Think back to a time you bought something by the metre. Perhaps it was some carpet, material for a dress or curtains, or a length of rope at the hardware store. Let me ask you this question: when comparing different carpets (or materials or ropes… or whatever) did the per metre price vary much? Of course it did. Why?

It’s obvious – different types of carpet (or material or rope… or houses) are very different in quality. One carpet may be made of wool while another is synthetic. One type of material may be handmade while another may come from an automated machine. And one rope may have a breaking strain of 1 ton while another can’t hold 100kg.

An average home contains hundreds of different ‘ingredients’ including carpet, bricks, tiles, taps, sinks, paint, timber, glass etc. And all of these materials come in different qualities. On top of that, the way in which these materials are assembled into a finished house differs in quality and attention to detail.

The variances are almost infinite. So comparing one builder’s price of $900 per square metre to another’s price of $2,000 per square metre (and everything in-between) is exactly like trying to compare an orange with a lemon. The differences are many, not just the price.

Reason #2:

Every house design is different. Some houses are square, some houses are ‘L’ shaped, and others have many different angles and shapes. While 3 different houses may all have the same internal dimension (square metres) the quantity of building materials that go into these homes and the complexity of the design, roof-line etc. will vary greatly in quantity depending on the shape.

Compare both designs...

Both have an internal area of 250 square metres. But the first house design is a much more intricate design and will require more guttering, more bricks, and metres more gyprock. It will probably have more windows and doors. And it will need at least several litres more paint, the finishing and fittings are of a higher level which makes it $100,000 more expensive than the home on the right with the same floor area. ($1600m2 vs $1200m2)

So don’t be fooled into trying to compare house prices via square metre rates. The variables are too great. And you may find you end up with a lemon when you really wanted an orange.

The right builder can give you great design ideas that add impact and style without increasing the price.

At Allaro Homes we offer a Free Design Consultation and our precision software allows you to design your home exactly how you like and costs in real-rime to ensure we stay on budget.