Perth's construction market has changed significantly over the past few years. The rapid cost escalation of the COVID period has begun to stabilise, but build costs remain elevated and are unlikely to return to previous levels. For homeowners planning a new build in 2026, understanding what things actually cost — and what you get for the difference — is more important than ever.
One of the most common questions we receive at Studio Origami is: how much more does a high-performance or Passive House home cost compared to a standard build? The honest answer involves three distinct tiers — and the difference between them is more meaningful than the numbers alone suggest.
Where Perth build costs
sit in 2026
| Home Type | Approx. $/m² (2026) | What's included |
|---|---|---|
| Standard 7-star NatHERS | $2,500–$3,500 | Minimum code compliance under NCC 2022. Requires air conditioning for comfort. Standard insulation, no airtightness layer, no mechanical ventilation. |
| High-performance passive solar | $3,500–$4,500 | Better insulation, passive solar orientation, double glazing. Significantly more comfortable than standard, but still relies on mechanical systems for peak summer comfort. |
| Passive House principles | $4,500–$5,500 | Airtight construction, continuous insulation, high-performance glazing, HRV or ERV mechanical ventilation. Independently verifiable performance. Minimal reliance on air conditioning. |
These figures reflect a base build on a flat site and do not include site works, excavation, landscaping or professional fees. On sloping Perth Hills sites, earthworks and retaining can add significantly to the overall cost regardless of which performance tier you choose.
What a standard 7-star
NatHERS home actually delivers
Under WA's updated National Construction Code (NCC 2022), all new homes must now meet a minimum 7-star NatHERS energy rating. This is a meaningful improvement on the previous 6-star standard, and it means that a basic new Perth home now performs better than it did five years ago.
However, a 7-star NatHERS home is still a home that requires ducted air conditioning to maintain comfort through Perth's long, hot summers. The rating measures energy modelling — it does not test real performance. There is no airtightness requirement, no mechanical ventilation, and no independent verification of how the building actually performs once it's built. The standard is better than it was, but it remains a compliance floor rather than a performance ceiling.
The high-performance
sweet spot for Perth
The middle tier — a high-performance passive solar home — represents what Studio Origami considers the minimum standard for a home worth building in Perth's climate. At $3,500–$4,500 per square metre, this approach delivers a home that is orientated correctly, well-insulated, double-glazed and designed to work with Perth's sun path rather than against it.
These homes are significantly more comfortable than a standard 7-star build. They typically require a split system rather than full ducted air conditioning, and their energy bills are meaningfully lower. The Aughton House in Bayswater achieved 83% lower CO₂ than an average new home through exactly this approach — careful specification, passive solar design and a complete sustainable systems package including solar, battery and heat-pump hot water — without requiring full Passive House certification.
"Most Perth families don't need to spend $5,500 per square metre to get a home that is comfortable, healthy and energy efficient. But they do need to spend more than the minimum — and design it right from day one."
What full Passive House
adds — and costs
Moving to a fully Passive House-principled build — whether pursuing formal certification or not — represents the top tier of residential performance available today. At $4,500–$5,500 per square metre, the premium over a standard home is real and significant. For a 250m² home, that might mean an additional $150,000–$250,000 in construction cost compared to a standard build.
What justifies this premium? The key additions are airtight construction (requiring careful detailing and a blower door test), a continuous insulation layer without thermal bridges, and a mechanical heat or energy recovery ventilation system. Together, these create a building envelope that maintains a consistent indoor environment year-round with minimal mechanical intervention.
The ongoing savings are also real. A certified Passive House in Perth typically uses up to 90% less heating and cooling energy than a standard home. At current Perth energy prices, that translates to $1,500–$2,500 per year in energy savings. Over 20 years, that is $30,000–$50,000 — a significant offset against the construction premium, even before accounting for the avoided cost of ducted air conditioning installation and maintenance.
What drives costs up
beyond the standard
Understanding where the premium goes helps in making budget decisions. The main cost drivers when moving from a standard to a high-performance build are:
- Insulation specification and continuity — more insulation, specified carefully to avoid thermal bridges
- Window upgrades — thermally broken frames and double glazing add $15,000–$40,000 on a typical Perth home depending on glazing area
- Airtightness detailing — the membranes, tapes and careful construction required to achieve airtightness add time and cost at the trade level
- HRV or ERV system — mechanical ventilation systems for a family home typically cost $8,000–$18,000 installed
- Design and certification fees — PHPP modelling, blower door testing and Passive House certification add to professional fees
The question to ask
before you decide
The right performance tier for your project depends on your site, your budget, your timeline and your goals. Some questions worth working through:
How long will you live there? The longer your time horizon, the more the upfront premium is offset by ongoing savings and avoided maintenance.
What is your primary motivation? If comfort and health are the priority, the high-performance or Passive House tier delivers the most noticeable improvement. If energy savings are the priority, the high-performance tier often delivers the best return on investment.
What is your budget tolerance for ongoing costs? A standard home built more cheaply will cost more to run every year for its entire lifetime. The total cost of ownership over 20 years often favours the higher-performance build.
Our Passive Home Strategy Session is designed exactly for this conversation. In 90 minutes, we work through your site, your budget and your goals and give you a clear, honest recommendation — not a sales pitch for the most expensive option, but a genuine assessment of what approach makes the most sense for your specific project.