How Shared Fencing Works When Building a New Home
22nd April 2024
Post-Construction Legal & Contracts
This article explains how shared fencing works when building a new home in Australia, covering who pays, how to coordinate with neighbours, and what to expect during the process. It offers practical tips, cost insights, and advice to help home buyers avoid common fencing pitfalls and maintain good neighbourly relations.

How Shared Fencing Works When Building a New Home
If you’re building a new home, you’ve probably spent a fair bit of time thinking about floorplans, kitchen finishes and landscaping. But what about fencing – especially fencing that borders a neighbour’s property?
In this episode of the Home Building Hub podcast, Colin Bischof and Darren Brennan break down the practical (and sometimes tricky) world of shared fencing – who pays, what to expect, and how to avoid a neighbourly dispute.
Whether you're building on a standard lot or a corner block, understanding your responsibilities around shared fences could save you time, money and headaches.
What Is Shared Fencing?
Shared fencing refers to the dividing fence between your property and your neighbour’s. In most cases, you're both responsible for contributing to the cost of the fence – commonly referred to as a “half share”.
Key Points to Understand:
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Most builders do not include fencing in the base price unless you're working with a turnkey builder.
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You and your neighbour typically share the cost 50/50.
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If your neighbour hasn’t moved in or the lot hasn’t sold, you may need to pay the full cost up front and seek reimbursement later.
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You’re not obligated to share the cost of a premium fence (like brick) if you only want a standard timber or Colorbond option.
Step-by-Step: How to Arrange Shared Fencing
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Find your neighbour’s details You can request this through your local council – they’ll generally only provide the name and address.
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Send a fencing notice Draft a letter letting your neighbour know you’d like to build a fence. Include:
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Three quotes
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Details of the proposed fence type
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A request for them to agree and contribute
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Get quotes and reach agreement Once you’ve both agreed on a quote, go ahead with the chosen fencing company.
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If they don’t respond or haven’t moved in yet You can go ahead and build the fence, then claim reimbursement later – common law supports your right to do so. Usually 30 days notice is suffice, but double-check your own own regulations locally.
What If the Neighbour Wants a Fancier Fence?
You’re only obligated to contribute to a standard fence. If your neighbour wants something extravagant – like a brick wall – they’ll need to cover the additional cost. You can choose to contribute more if you’d like, but it’s not required. You only need to contribute half share of a fence that is deemed acceptable, which would be specified in design guidelines in building in a greenfield estate. If not, reference the majority if other fences in the street, and that is usually your best bet.
Special Considerations
Building on Boundary Lines
If your neighbour wants to build their garage directly on the boundary (with a zero lot line), your existing fence may need to be removed. It’s best to:
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Be understanding
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Maintain clear communication
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Agree to let trades access your land if needed
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Delay landscaping on that side until construction is complete
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TIP: If building to boundary (you or your neighbour) make sure the fencing company does not quote that section as the wall would be the fence in that case.
Fencing on Corner Lots
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You’ll likely need to cover the full cost of fencing that borders the street.
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Some estates have special design guidelines requiring upgraded or decorative corner fencing – which adds to the cost.
Fence Types
Check estate design guidelines for the required fence style. Common options include:
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Timber paling with exposed posts and capping
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Colorbond (popular colours include Monument and Woodland Grey)
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Brick (rare and expensive, usually used on front boundaries)
Consistency in materials and colour across all three boundaries helps with overall aesthetics and street appeal.
How Much Does Shared Fencing Cost?
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Expect to pay between $3,000 and $6,000, depending on materials and lot size.
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A standard half share on a typical 28m deep block usually falls around the $3,000 mark.
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Costs are increasing, so always get multiple quotes.
Extra Tips
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Don’t forget small fences and gates between your home and the side fence – especially important for dog owners. Some estates may not allow this fence, so double-check with estate guidelines.
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Plan for delays if your neighbours are still building.
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Keep things friendly – the fence will stand, but relationships matter more.
Key Takeaways
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Fencing is usually not included by most builders – unless you’re with a full turnkey provider.
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You’ll generally split the cost with your neighbour – but only for a standard fence.
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If your neighbour’s block is vacant, you may need to pay first and claim later.
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Estate guidelines may specify fence type and colour – check before you commit.
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Corner lots often involve full-share costs and upgraded fencing requirements.
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Clear communication and a bit of patience go a long way in keeping the peace.
🎧 Listen to the full episode here: 👉 How does shared fencing work with your neighbours? – Episode 48
Glossary of Terms
Half-share fencing – A cost-sharing arrangement between neighbours where both contribute equally to the cost of the shared boundary fence.
Turnkey builder – A builder who delivers a home that’s ready to move into, often including extras like landscaping, fencing and blinds.
Colorbond – A brand of coated steel fencing, popular in Australian residential construction for its durability and colour options.
Capping – A decorative piece added to the top of a timber fence for both aesthetics and extra protection from weathering.
Frequently Asked Questions
What happens if my neighbour refuses to pay? You can still go ahead and build the fence. Under common law, they are obligated to reimburse you. Keep records and communicate clearly.
Can I choose any fencing company? Yes, but it’s best to include your neighbour in the quoting process to avoid disputes.
What if I want a premium fence, but my neighbour doesn’t? You’re free to build what you like, but you can only ask your neighbour to contribute to the cost of a standard fence.
Do corner lot owners have to pay for the full fence? Yes – if the fence borders a public street, there’s no neighbour to split the cost with.
About the Home Building Hub Podcast
The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process – completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.
Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.
Disclaimer
Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.