Independent Australian Cost Guides
Updated October 2026

How much does a builder cost in Melbourne?

A single-storey extension in Melbourne costs $2,500-$5,000 per sqm
from small structural jobs to a full knock-down rebuild
A single-storey extension in Melbourne typically runs $2,500-$5,000 per square metre built, so a 40 sqm extension lands around $100,000-$200,000 with basic finishes. Small structural jobs such as a wall removal start around $500-$5,000, a granny flat runs $120,000-$250,000, a second-storey addition $250,000-$600,000, and a knock-down rebuild of a standard 3-4 bedroom home $450,000-$1,000,000+.
Typical Extension Rate in Melbourne
$3,500
per sqm, single-storey extension
Small structural job from
$500
Extension (per sqm)
$2,500-$5,000
Knock-down rebuild
up to $1M+
From $500Typical $3,500Up to $1M+

Ask a Melbourne builder to price new floor space and the answer usually comes back as a square-metre rate: $2,500–$5,000 for a single-storey extension, with $3,500 the typical figure, and $1,600–$4,500 for a new house at a standard finish. Work inside an existing home is quoted as one sum, from $15,000–$45,000 for a builder-managed bathroom up to $150,000–$600,000 for the whole house. Fewer Melbourne homes stand alone than in the country overall, 67.8% of dwellings against 72.3% (ABS 2021 Census), which means plenty of jobs here begin on a narrow lot with a wall shared next door.

Comparing cities, or after the Australia-wide picture? See the national guide: Builder cost in Australia.

Quick answerA builder in Melbourne charges $2,500-$5,000 per sqm for extensions and new builds, with small structural jobs from $500 and knock-down rebuilds running $450,000-$1,000,000+. GST included. Independent pricing data. Get free Melbourne quotes →

Detailed Pricing — Building Cost in Melbourne 2026

ServiceLowTypicalHigh
Minor structural repair (lintel, crack stitching, wall ties)$500per job$1,800$5,000
Load-bearing wall removal + steel beam$3,000per job$8,000$15,000
Pre-purchase building inspection / defect report$400per job$600$1,200
Deck or pergola (builder-managed)$5,000per project$12,000$40,000
Roofed patio / alfresco (builder-managed)$12,000per project$20,000$35,000
Garage or carport (single to double)$10,000per project$25,000$55,000
Bathroom renovation (builder-managed)$15,000per project$25,000$45,000
Kitchen renovation (builder-managed)$20,000per project$35,000$70,000
Single-storey extension (per sqm)$2,500per sqm$3,500$5,000
New home build (per sqm, standard finish)$1,600per sqm$2,300$4,500
Granny flat (1-2 bed, turnkey)$120,000per build$165,000$250,000
Full home renovation (whole house)$150,000per project$300,000$600,000
Second-storey addition$250,000per project$380,000$600,000
Knock-down rebuild (3-4 bed, single storey)$450,000per build$650,000$1,000,000
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Renovate, Extend or Rebuild in Melbourne?

Melbourne’s three paths, priced from the table: renovate the whole house ($150,000–$600,000), extend ($2,500–$5,000 a square metre) or rebuild ($450,000–$1,000,000). Since 1 July 2026 Victoria has a first-resort Home Warranty insurance scheme, mandatory over $20,000, with cover up to $400,000.

Common Building Projects and What They Cost

Home extensions

An extension is $2,500–$5,000 a square metre: $75,000–$250,000 for 30–50 m².

Second-storey additions

A second storey: $250,000–$600,000.

Granny flats

Turnkey granny flat (one or two bedrooms): $120,000–$250,000.

Knock-down rebuilds

Knock-down rebuild: $450,000–$1,000,000. Demolition needs a building permit, and council consent for more than half the building.

Home Extensions and Second-Storey Additions in Melbourne

Builders on work over $10,000 must be registered with the Building and Plumbing Commission. In the City of Melbourne, permitted work over $10,000 also attracts an asset protection levy. Second storey: $250,000–$600,000.

Knock-Down Rebuild vs Renovation in Melbourne

The City may need to give Section 29A consent before a demolition permit is issued, and sometimes a planning permit too. In a Heritage Overlay, demolition generally needs a planning permit. Rebuild $450,000–$1,000,000, renovate $150,000–$600,000.

What's Included in a Builder's Quote

Deposits are capped at 10% under $20,000 and 5% from $20,000, and you have five business days to withdraw from a major domestic building contract. A pre-purchase or defect inspection is $400–$1,200 in our table.

What Affects Builder Costs in Melbourne

Registered builder, written contract

Victoria draws its first line at $10,000. Above that value, counting labour, materials and GST, only a builder on the Building and Plumbing Commission register can take the job, and where the work involves more than one trade, a major domestic building contract must be signed before anything starts. A builder-managed bathroom begins at $15,000, so even a bathroom at the bottom of its band already needs both.

Insurance and the deposit ceiling

On a contract worth more than $20,000, for a house no taller than three storeys, Home Warranty insurance is arranged by the builder in your name after you sign. The same $20,000 mark sets the deposit limit: at most 10% below it and 5% at or above it. On a typical second-storey addition of $380,000, the legal ceiling on money paid up front is $19,000.

Pulling down part of the house

Demolition needs a building permit in Victoria, and section 29A brings in the council's report and consent once the demolition takes over half the building's volume or touches a street-facing facade. A Heritage Overlay generally adds a planning permit for the demolition itself. Inside the City of Melbourne municipality, permit work worth more than $10,000 also attracts a non-refundable asset protection levy, and the City records the condition of nearby public assets before work begins.

Terraces and shared walls

Semi-detached homes such as terraces and townhouses are 16.2% of Melbourne dwellings and flats another 15.6%, both above the national shares of 12.6% and 14.2% (ABS 2021 Census). On those sites the builder may be working against a party wall, with no side lane for a skip or excavator and every sheet of plasterboard carried through the front door. Those hours land in the quote even when the new floor area is modest.

Asbestos in older homes

A house built before 1990 may contain asbestos sheeting under the eaves, behind bathroom tiles or in old linings, and it has to be tested before anything is cut or knocked down. Trades can take out bonded, non-friable material unlicensed only up to 10 square metres in total; any more and Victoria generally expects a WorkSafe-licensed removalist. Ask for testing and any removal to appear as their own lines rather than inside the demolition price.

Spring rain, winter cold, zone 6

October is the wettest month at the Melbourne Regional Office station (66.0 mm), and July the coolest, with an average top of 13.5 °C (BOM averages). Wet ground slows excavation and slab pours, and short, cold days stretch the time concrete and plaster need. Melbourne is NCC climate zone 6, whose energy-efficiency settings decide how much insulation and what grade of window a new room must carry, and that feeds straight into the price of walls, roof and glazing.

A small second home out the back

A self-contained second home of 60 square metres or less does not need a planning permit in most cases, as long as no flooding or other special controls apply, though it still needs a building permit and cannot be sold apart from the main house. In the General Residential Zone that exemption only holds on lots of 300 square metres or more, so measure the block before you brief anyone.

How to Save Money on Building Cost in Melbourne

1
Search the Building and Plumbing Commission register for the builder's name before you sign for any work worth more than $10,000.
2
Question any deposit request above 5% on a contract of $20,000 or more; Victorian law does not allow it.
3
Read the inclusions and prime-cost allowances during the 5 business days after you receive the signed contract, when pulling out costs $100 plus any expenses you approved.
4
On a terrace or townhouse, ask each builder how waste and materials will get in and out, and whether skip and street-occupation costs are in the price.
5
Aim to have footings dug over summer; January is Melbourne's driest month on average, at 46.8 mm (BOM averages).
6
Settle every finish and fitting in writing before the contract; once the frame is up, each change of mind comes back as a costed variation.

Frequently Asked Questions — Building Cost in Melbourne

What are builder prices in Melbourne?
Going by our Melbourne table, expect $500–$5,000 for a small building job, $2,500–$5,000 a square metre for a single-storey extension and $150,000–$600,000 for a whole-house renovation.
What do builders charge for a bathroom or kitchen renovation in Melbourne?
In our Melbourne table the figures are $15,000–$45,000 for a bathroom renovation (typically $25,000), $20,000–$70,000 for a kitchen renovation (typically $35,000) and $150,000–$600,000 for a whole-house renovation (typically $300,000).
How much should I pay for a garage or carport (single to double) in Melbourne?
Our Melbourne prices for a garage or carport (single to double) start at $10,000 and reach $55,000, with $25,000 typical.
How much is a knock-down rebuild (3–4 bedrooms, single storey) in Melbourne?
A knock-down rebuild (3–4 bedrooms, single storey) runs $450,000–$1,000,000 in our Melbourne table; $650,000 is the typical price.
How much is a new home build (standard finish) in Melbourne?
A new home build (standard finish) runs $1,600–$4,500 a square metre in our Melbourne table; $2,300 is the typical price.
Do builders need to be licensed in Melbourne?
Yes. Larger residential building jobs need a licensed or registered builder in every Australian state and territory - the trigger (a dollar value or the type of work) and the regulator vary (for example Building Commission NSW, the QBCC in Queensland, the Building and Plumbing Commission in Victoria and Building and Energy in WA), and most states and territories also require home warranty insurance on larger jobs. Confirm your Melbourne builder's licence number and insurance before signing or paying a deposit.

Our Methodology

Prices on this page are compiled from publicly available cost guides, leading tradie marketplaces, peak industry body data, and individual tradesperson websites across Australia. We cross-reference ranges from multiple sources and adjust for city-specific cost differences. Our price guides are produced independently and no tradesperson can influence a published figure. All prices are estimates and will vary based on your specific job. Always get multiple quotes. Last reviewed June 2026. Read our full methodology →

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