To build a house in Colwood you need a serviced or serviceable lot, a building permit under Colwood's Building Bylaw No. 977, roughly $20,700 in development cost charges for a single-family lot, and a design that meets Zero Carbon Step Code EL-4, which effectively means all-electric heat. The biggest Colwood-specific question is servicing: about 5,800 Colwood lots are not on municipal sewer, which affects both septic design and how many units you can build. This guide covers the rules, fees and published cost ranges for a new home in Colwood, including the Royal Bay and Latoria areas.
What does it cost to build a house in Colwood?
Builders do not publish Colwood-only figures, but Greater Victoria builders publish these custom-home ranges (pages checked Oct 2026):
| Source | Published range | Notes |
|---|---|---|
| Stillwater Custom Homes | $350 to $450+ per sq ft basic; $450 to $700+ mid-range; $600 to $900+ luxury | Average "between $350 and $600 per square foot"; updated April 2026 |
| LIDA Homes | $400 to $650 per sq ft and up | A 2,000 sq ft home at $800,000 to $1.3 million; page dated June 2024 |
| Altus Group 2026 Cost Guide (Vancouver, nearest listed market) | $490 to $1,250 per sq ft for custom single family | Hard cost only; Victoria is not a listed market |
Those ranges usually exclude land, GST and soft costs. On top of construction, a Colwood build carries the municipal charges below. Our cost to build a house in Victoria BC guide breaks the whole budget down line by line.
What are Colwood's development cost charges and permit fees?
Development cost charges (June 2025 schedule)
| Charge | Single family (per lot) | Medium density (per unit: townhouse, duplex, tri/fourplex, detached secondary suite) |
|---|---|---|
| Park acquisition | $2,900.53 | $2,537.97 |
| Park improvement | $2,806.48 | $2,455.67 |
| Roads | $8,142.09 | $5,268.41 (townhouse/duplex) |
| Sewer enhancement | $3,077 | $2,488 (two to four family); $2,095 (townhouse) |
| CRD Juan de Fuca water | $2,796 | $2,446 |
| SD62 school site acquisition charge | $1,000 | $800 to $900 by density |
| Total | $20,722.10 | Depends on unit type |
Coming next: the CRD's new Regional Water Supply DCC takes effect on April 2, 2027 across all 13 member municipalities, including Colwood. For a single-family or two-unit lot it is $9,044 per lot, with one year of in-stream protection. If your permit will land after April 2027, ask Colwood how the protection applies to your application. For a side-by-side with Langford and Saanich, see development cost charges in Greater Victoria.
Building permit fee
Colwood's Schedule A charges $50 for the first $1,000 of construction value, $12 per $1,000 for the next $99,000, $10 per $1,000 for the next $400,000, and $8 per $1,000 above that. A non-refundable application fee ($100 up to $200,000 of value, $1,000 above) is included in the permit fee. Construction value is the total cost minus land and DCCs, but including professional fees and taxes.
| Declared construction value | Colwood building permit fee |
|---|---|
| $500,000 | $5,238 |
| $900,000 | $8,438 |
| $1,200,000 | $10,838 |
Plumbing and electrical permits are separate. Confirm the current schedule with Colwood's building department before you budget.
What are Colwood's zoning rules for a new home?
Colwood regulates land use through Land Use Bylaw No. 151. Your zone sets setbacks, height, lot coverage and whether a suite is allowed, so pull the zoning for your specific lot first. Parking for a single-family home with a suite is 3 spaces under the current rules.
Can I build more than one unit in Colwood (SSMUH)?
Not yet with certainty. Colwood's small-scale multi-unit housing (SSMUH) bylaw, Amendment Bylaw No. 2091, would permit 3 to 6 units on qualifying lots in line with provincial rules. On June 8, 2026, Council referred it back to staff "for a more comprehensive review prior to Council decision." Later reports say it was adopted in August 2026, but we have not been able to confirm that on a Colwood record, so check with Colwood planning before you design a multiplex.
Under the staff proposal, about 148 lots would qualify for 3 units, 2,169 lots for 4 units and 40 lots near the Route 95 bus for 6 units. Roughly 5,800 lots without municipal sewer are excluded. For how the rules compare across the region, see how many units you can build on your lot.
Is my Colwood lot on sewer, and what if it is not?
Servicing is the first thing to check on any Colwood lot. If the lot is on municipal sewer, budget for the connection and the sewer enhancement DCC above. If it is not, the home needs an onsite sewerage (septic) system, and that changes the project:
- The system must be designed and built by an Authorized Person: a Registered Onsite Wastewater Practitioner or a qualified professional such as an engineer.
- The Authorized Person files the design with Island Health before construction. Island Health checks that the filing is complete; it does not approve the design.
- Within 30 days of finishing, the Authorized Person submits a letter of certification, and the system cannot be used until that letter is filed.
- Soil, slope and lot size decide what kind of system fits, which in turn limits where the house and any suite can go.
Water, power and storm drainage also need confirming. ACAP LTD coordinates servicing through its in-house plumbing and electrical divisions, so the trenching and connections are priced with the house.
Building in Royal Bay and Latoria: what is different?
Royal Bay is Colwood's large master-planned waterfront community. Its Area Plan covers about 189 hectares in southeast Colwood on a former quarry and aggregate site, and sits within Colwood's Intended Growth Area. The area plan was written to carry the balance of the 2,800 dwelling units permitted in the original 1996 plan, in a mix of detached, ground-oriented attached and apartment homes. The Latoria Creek neighbourhood borders it to the west, and the Latoria South sub-area plan amends the Royal Bay plan.
What that means if you are building on a lot there:
- Check title for covenants and design guidelines. Master-planned subdivisions often register building schemes or design controls on title. Your builder needs them before design starts.
- Ask about fill and soils. Former quarry land can mean engineered fill. A geotechnical report tells you what the foundation needs.
- Plan for weather exposure. Lots near the water take wind-driven rain and salt air, which affects cladding, flashing and fastener choices.
What energy code applies to new homes in Colwood?
Like the rest of BC, Colwood requires BC Energy Step Code Step 3 for new Part 9 homes. Colwood also adopted Zero Carbon Step Code EL-4 for Part 9 buildings effective March 4, 2024, which means no fossil fuel for space or water heating. Plan on a heat pump and an electric or heat pump water heater, and size the electrical service to suit. Our Step Code guide for Victoria-area new homes explains what each step means for walls, windows and airtightness.
How does building a house in Colwood work, step by step?
- Confirm zoning, servicing (sewer or septic) and any title covenants for the lot.
- Get a geotechnical report if the lot has fill, rock or slope.
- Design to the zone and to Step 3 and EL-4.
- Enrol the home in 2-5-10 home warranty through a licensed residential builder; the BC Housing registration is required before the building permit.
- Apply for the building permit and pay DCCs.
- Build through foundation, framing, rough-ins, insulation, inspections and occupancy.
ACAP LTD manages permits, trades and inspections as a general contractor across the West Shore. If you have a Colwood lot or are about to buy one, ask us to review it and price your build.