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The cost to build vs buying a house in South Africa in 2025


As house prices cool and construction costs rise, South Africans looking to enter the property market in 2025 face a complex question: is it cheaper- and wiser- to buy an existing home or build one from the ground up?

While the dream of a custom-designed home remains strong, the financial and logistical hurdles of construction have grown steeper. At the same time, established homes offer faster access to sought-after neighbourhoods, but may come with hidden costs and dated features.

According to data from RE/MAX and Absa, the average price of a freehold property in South Africa is now R1.37 million, while sectional titles come in at just over R1 million.

In contrast, the cost of building a new home ranges from R6,500 to R25,000 per square metre, depending on materials, location, and specifications.

“Building a home can cost 20% to 30% more than buying one,” said property economist Elmarie Goosen. “But you’re paying for full control over the design, energy efficiency, and the future value of the property.”

For many buyers, existing homes in established suburbs offer a simpler route to homeownership. With amenities like schools, hospitals, and public transport already in place, and luxury add-ons like swimming pools or landscaped gardens often included, buying a home allows for a relatively swift transition.

A standard property transfer can take around three months. That’s far less than the time needed to complete a construction project, which may stretch for over a year.

However, pre-owned homes can bring surprises. Renovation costs, outdated insulation, and inefficient appliances can quickly erode savings.

And for some, living in a home that has hosted generations before them can feel less personal.

Building allows for modern designs, eco-friendly materials, and the latest in smart home technology. Crucially, there are no transfer duties on new builds.

Yet the risks are significant. The construction industry in South Africa has been hit by delays linked to labour shortages, material price spikes, and a lack of regulation enforcement.

According to the 2024 Turner & Townsend survey, average construction costs in Johannesburg now sit at R17,791/m², while Cape Town leads with R19,589/m².

The cost breakdown also goes beyond bricks and mortar. High-end kitchens can cost over R150,000, bathroom installations may reach R25,000, and professional fees—from architects to engineers—can account for 10–15% of the total build cost. Budgeting for the unexpected is essential.

While price is a leading factor, many buyers make their final decision based on lifestyle. Buying often means compromising on design but securing a convenient location.

Some developers are offering hybrid solutions—custom homes in pre-zoned estates, combining the ease of buying with the flexibility of design. These may grow in popularity as construction inflation continues to rise.

According to the latest industry data, buying an existing freehold home costs around R1.4 million, while the average cost of building a mid-range home now ranges between R10,000 and R15,000 per square metre, depending on location and finishes.

Moving service Wise Move highlights the costs:

Average Costs: Buying vs Building

Category Estimated Cost per m² Total Cost (100m²) Notes
Buying (avg.) R10,000 – R14,000 R1,000,000 – R1,400,000 Based on average home sale prices
Building (basic) R6,500 – R10,000 R650,000 – R1,000,000 Entry-level construction, limited features
Building (mid-range) R10,000 – R15,000 R1,000,000 – R1,500,000 Most common build costs in urban areas
Building (high-end) R15,000 – R25,000+ R1,500,000 – R2,500,000+ Luxury builds with premium finishes
SA Building Costs by Province (2025 Estimates)
Province Avg. Build Cost per m² Estimated Total for 150m²
KwaZulu-Natal R16,700 R2,505,000
Gauteng R15,000 R2,250,000
Western Cape R14,800 R2,220,000
Free State R12,700 R1,905,000
Eastern Cape R12,300 R1,845,000
Northern Cape R11,800 R1,770,000
Mpumalanga R10,400 R1,560,000
Limpopo R9,600 R1,440,000
North West R9,100 R1,365,000
SA Building Costs by Home Size
Home Size (m²) Budget Build Mid-range Build Luxury Build
50m² R350,000 – R450,000 R550,000 – R650,000 R1,000,000 – R1,250,000
100m² R650,000 – R850,000 R1,000,000 – R1,250,000 R2,000,000 – R2,450,000
150m² R950,000 – R1,250,000 R1,550,000 – R1,800,000 R3,000,000 – R3,600,000
200m² R1,250,000 – R1,650,000 R2,000,000 – R2,450,000 R4,000,000 – R4,800,000
According to Absa, building costs are generally 20–30% higher than buying a completed home.

When building, special costs quickly add up: architectural fees (up to 8%), engineers, legal costs, and a contingency budget (10–15%) for delays or design changes. Plumbing, electrical work, and even site preparation can be surprisingly costly, especially on tricky terrain.

Buyers, on the other hand, must prepare for transfer duties, bond registration fees, and potential renovation costs if the home requires updating.

Special & Hidden Costs When Building

Item Estimated Cost / %
Architect Up to 8% of construction cost
Land Surveyor Up to 5%
Structural Engineer Around 2%
Quantity Surveyor Up to 4%
Lawyer R900/hour average
Contingency Budget 10–15% of total project cost
Swimming Pool R60,000 – R120,000
Kitchen (high-end) Up to R150,000
Bathroom (mid-high) R13,000 – R25,000
Cost of Common Materials
Material Cost Range
Bricks (1000 units) R1,600 – R6,000
Roof Tiles (1000) R1,300 – R4,000
Concrete Foundation From R23,000 (100m² home)

Home Type Average Cost per m² Total Cost (100m²)
Buy (Existing) R10,000 – R14,000 R1,000,000 – R1,400,000
Build (Basic) R6,500 – R10,000 R650,000 – R1,000,000
Build (Mid-range) R10,000 – R15,000 R1,000,000 – R1,500,000
Build (Luxury) R15,000 – R25,000 R1,500,000 – R2,500,000+

Whether to build or buy in 2025 depends not only on your finances, but your goals, timeline, and tolerance for complexity. Buying may save you time and money in the short term. Building may give you the forever home you’ve envisioned—but only if you’re prepared for the journey.