Why are Australian new builds so expensive but still full of defects?

JoondalupJules

My husband and I live in Joondalup, Perth, with our two kids. For the last 10 years, we worked, saved, rented, cut back on holidays, and kept telling ourselves it would all be worth it once we finally had our own family home.
We weren’t trying to build a mansion. We just wanted a normal, comfortable home where our kids could grow up, have their own rooms, play outside, and where we could finally stop feeling like we were living in someone else’s house.

Building was already stressful enough. The price kept feeling higher than expected, the delays dragged on, and every stage felt like another decision, another cost, or another thing to worry about. But we kept thinking, “Once it’s finished, at least it will be new. At least we won’t have all the problems that come with buying an older house.”

Now we’ve moved in, and honestly, I feel pretty crushed.

At first, everything looked nice because it was new. But after a short period of living here, we’ve started noticing issue after issue. Cracks appearing. Doors not closing properly. Poor finishes. Water pooling where it shouldn’t. Things that look rushed. Things that make me wonder how they were signed off in the first place.
Instead of enjoying the home we spent years working towards, I’m taking photos, sending emails, chasing replies, trying to understand building standards, and wondering whether we should have paid for an independent inspector earlier.

The hardest part is that this was meant to be the dream. We did the “right” thing. We saved, waited, planned, and paid a huge amount of money. But now it feels like we have to fight just to get the basic quality we thought we were already paying for.

So I’m curious what other Australians are seeing.
Are new builds genuinely getting worse, or are we just hearing more horror stories online?
For people who recently built, renovated, inspected, bought a new home, or worked in the industry:
What defects are you seeing most often?
Are volume builders worse than custom builders, or is it luck of the draw?
Did a private inspector actually save you money?
Are fixed-price contracts still reliable, or are they not worth much anymore?
What should buyers be checking before signing a contract?
What should people absolutely not skip during construction?
And if you built recently, what would you do differently if you had to do it again?

KelpieMum

That crushed feeling after handover is rough. We are in Perth too and the first month is where a lot of the cosmetic stuff shows up while everyone still calls it settling.

What helped us was a dated photo folder by room and a simple list: doors that stick after a dry week, grout haze that will not buff off, paint under windows at an angle, and any wet area that smells musty after three shower runs. Builder fixed more than we expected once it was itemised without emotion.

Practical completion and final payment are different conversations here. Do not let anyone rush the last cheque until you have run water everywhere and opened every window twice.

micko73

Ex chippy perspective, not defending volume builders. A lot of what owners see at six weeks is trade sequencing catching up: plaster shrinkage, timber acclimatising, silicone curing. Cracks at internal corners under 0.5mm that stop moving are often maintenance.

Red flags we treated seriously on walkthroughs: stepped cracks wider at the top, doors out of square that got worse, roof space stains that spread after rain, and any shower leak at the hob. Document with a ruler in frame for scale.

WA has its own handover paperwork habits. If you are not sure, pay for a one-off inspector before you release retention. Cheaper than arguing six months later.

JoondalupJules

Thanks everyone, genuinely appreciate the replies.

@KelpieMum this is really helpful, especially the idea of doing a dated photo folder by room instead of just sending emotional emails every time we spot something new. We’ve started doing that now: photos, dates, room names, and a simple list of what is cosmetic, what is getting worse, and what might be more serious. Also good point about running water everywhere and checking windows/doors properly before treating anything as “done”.

micko73 appreciate the ex-chippy perspective. That distinction between normal settling and actual red flags is exactly what I was trying to understand. I’ll start putting a ruler in photos so there’s scale, especially for cracks and anything that looks like it’s moving. The shower/wet area issues are the ones making me most nervous, so we’ll be keeping a close eye on those.

fuzzy-muppet honestly, the cupboard door comment made me laugh because that is exactly the kind of small thing that starts feeling huge when you’ve paid this much and expected better.

BecW-Brissy Thanks, this makes sense. I think the main takeaway from everyone is that we need a proper independent set of eyes, preferably someone local who knows WA handover standards and what builders here usually try to dismiss. We’re going to look into getting an independent inspector rather than trying to argue every item ourselves.

Overall, this thread has made me feel a bit less like we’re overreacting. We know some things may be normal settling, but there are enough issues that I don’t want to just accept vague “that’s standard” answers without proper documentation and advice.

Thanks again to everyone who replied. It’s been really useful.

fuzzy-muppet

BUILDERS R SNAKES lol nah but for real the amount we paid vs the cupboard door that wont close makes me FURIOUS

hope u get it sorted joondalup person

BecW-Brissy

Brissy owner here, not Perth, but this thread hit close to home after our place last year.

Before you go toe to toe with the builder on your own, get a second set of eyes that is not on their payroll. In QLD a lot of people use handovers.com as a known-good practical completion check. They are well regarded up here for catching the stuff volume builders try to wave through at sign-off. I honestly do not know if they cover WA or Perth the same way, so do not assume they can fly in for Joondalup.

For you I would still line up someone external and local: an independent building inspector, or even a retired site super who does handover walkthroughs for a day rate. Bring dated photos room by room and a written list like others said. Practical completion and final payment are not the same conversation, and you do not have to rush the last cheque while cracks and wet areas are still showing up.