As construction costs have continued to rise in recent years, housing prices in Taiwan have remained high. When buying a house, how do you estimate the construction costs so that you can buy an ideal house at a reasonable price? This article will introduce you to the cost components of building a house, analyze the construction costs for you, and introduce the costs and advantages of self-building to help you build your ideal home.

The cost of building a house｜4 major elements make up the construction cost

First, we will analyze the composition of construction costs for you, which can be mainly divided into land costs, construction costs, management and sales costs, advertising fees and builder's profits. The following is a detailed introduction for you:

Construction cost component 1: land cost

As the name suggests, it is the price of purchasing land. When calculating the cost of land, you cannot just look at the selling price, but you must also considerVolume rate, that is, the floor area that can be built on each piece of land, and then converted into volume unit price. Because the area that can be built on each piece of land is different, the land cost must be accurately estimated based on the volume unit price.

In addition, the proportion of land cost in different regions is also different. The higher the housing price, the higher the proportion of land cost. For example, the proportion of land cost in Taipei is about 70%. In areas other than Shuangbei, the proportion of land cost is about 70%. It is about 50%.

Construction Cost Component 2: Construction Cost

It accounts for about 20~25% of the construction cost, which varies depending on the building materials, building type and furniture equipment. Generally speaking, the construction cost of an elevator building will be more expensive than that of a Toten residence; if the building structure needs to be changed, the construction cost will also be increased. cost. In addition, you can also use the selling price to push back the construction cost. For example, if the local housing price for the same type of building materials is 800,000/square meter, the construction cost is 1/4 to 1/5 of 800,000, which is about 160,000. ~ 200,000 yuan/square meter.

Construction cost component 3: management and marketing costs, advertising fees

Management and sales costs include personnel costs, bank interest and miscellaneous expenses that the builder needs to pay; advertising fees are various marketing costs to assist sales, which add up to about 10 to 15% of the construction cost.

Construction cost component 4: builder’s profit

Finally, of course, the builder's profit is also indispensable. During the land development, construction and sales period, the builder needs to bear risks such as rising raw materials, changes in the economy, and interest rate increases. Therefore, a reasonable profit is about 20 to 30% of the total cost.

In summary, land cost accounts for the largest proportion of construction costs, followed by construction costs, builder's profits, management and marketing costs, and advertising fees. The following is a table for you:

majorarchitectureDesign team, accurately planning self-construction costs｜B-STUDIO

After reading the above introduction, we can find that the management and marketing costs, advertising fees and builder's profits alone account for 30 to 45% of the construction cost. Therefore, more and more people choose to build their own homes. In addition to reducing construction costs, they also save less In addition to building an ideal residence within the budget, you can also customize the building appearance, layout, interior design and other projects according to personal needs to create an ideal home environment.

If you have construction-related needs, whether it is self-build, old house renovation, new house decoration, etc., we are all welcomeConsult B-Studio anytimeIntegrated architecture and interior designteam, we have a professional construction team and rich interior design resources, which can tailor the perfect architectural plan for you.

Further reading:

[Self-built lazy bag] Understand the advantages and 5 major processes, and easily own the My Home of your dreams

How to pay for decoration costs? Accurately allocate funds to create an ideal home with limited resources