How much does a builder cost in Melbourne?
A builder in Melbourne charges $2,500-$5,000 per square metre for a single-storey extension, supplied and built to lock-up and fit-out with standard finishes (premium finishes and difficult sites push past $6,000/sqm). A granny flat runs $120,000-$250,000, a builder-managed bathroom renovation $15,000-$45,000 and a kitchen $20,000-$70,000. Larger projects scale quickly: a second-storey addition is $250,000-$600,000, a full home renovation $150,000-$600,000, and a knock-down rebuild $450,000-$1,000,000+ depending on size, slope and finish level.
Detailed Pricing - Melbourne 2026
| Service | Low | Typical | High |
|---|---|---|---|
| Minor structural repair / small building job | $500per job | $1,800 | $5,000 |
| Load-bearing wall removal + steel beam | $3,000per job | $6,000 | $15,000 |
| Pre-purchase building inspection / defect report | $500per job | $600 | $1,200 |
| Deck, pergola or outdoor structure (builder-managed) | $8,000per project | $18,000 | $40,000 |
| 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) | $2,200per sqm | $3,000 | $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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Get Melbourne quotes →Renovate, Extend or Rebuild in Melbourne?
Most builder enquiries in Melbourne start with the same question: work with the existing house, add to it, or start again. A cosmetic-to-structural renovation of the existing footprint is the cheapest path at $150,000-$600,000 for a whole home, but it carries the most unknowns - once walls open up, rot, termites, old wiring and non-compliant plumbing tend to appear. Extending keeps the house you have and adds floor area at $2,500-$5,000 per sqm, and is usually the best value when the existing structure is sound. A knock-down rebuild at $450,000-$1,000,000+ is the most expensive up front, but delivers a new home with a full builder's warranty, modern energy performance and no legacy surprises; on a tired house in a good Melbourne location it is often the better spend per square metre.
Common Building Projects and What They Cost
Home extensions
Single-storey extensions run $2,500-$5,000 per sqm in Melbourne, so a 30-50 sqm living or bedroom extension typically costs $90,000-$220,000 including council approval, engineering and standard finishes.
Second-storey additions
Adding a level costs $250,000-$600,000. Much of the spend is structural - assessing and reinforcing the existing footings and frame, a new stair, and re-roofing - before any rooms are fitted out.
Granny flats
A turnkey 1-2 bedroom granny flat is $120,000-$250,000 in Melbourne. Modular and kit builds sit at the low end; custom-designed flats with premium finishes, decks and separate services run higher.
Knock-down rebuilds
Demolishing and rebuilding a 3-4 bedroom single-storey home is $450,000-$1,000,000+. Demolition alone is $15,000-$40,000, and sloping, tight-access or bushfire-rated sites add materially to the build.
Home Extensions and Second-Storey Additions in Melbourne
Extension pricing in Melbourne is quoted per square metre, but the rate is not fixed. Ground-floor extensions on flat, accessible blocks with a simple roofline sit at the $2,500-$3,500/sqm end; wet areas, cantilevers, bifold walls, steel-heavy open plans and sloping sites push toward $5,000/sqm and beyond. Second-storey additions are priced as whole projects at $250,000-$600,000 because so much of the cost is in the existing house: engineers must confirm the footings and slab can carry the load, the ground floor usually needs new steel and a staircase, and the family typically moves out for 4-6 months. Ask every Melbourne builder to itemise structural work, external cladding and roofing, internal fit-out and prime-cost allowances separately, so quotes can be compared line for line.
Knock-Down Rebuild vs Renovation in Melbourne
A knock-down rebuild in Melbourne starts around $450,000 for a straightforward 3-4 bedroom single-storey home and reaches $1,000,000+ for two storeys, premium finishes or a difficult block. Before demolition you will also pay for a demolition permit, service disconnections and reconnection, and in many suburbs a tree and heritage assessment. Renovating is cheaper on paper, but a whole-house renovation at $150,000-$600,000 can end up close to a rebuild once structural repairs, rewiring, replumbing and asbestos removal are added. A useful rule in Melbourne: if the renovation spend would exceed 60-70% of a rebuild, get a rebuild quote before committing.
What's Included in a Builder's Quote
A fixed-price building contract in Melbourne should cover preliminaries (site set-up, insurance, supervision), demolition, structural work, external envelope (frame, roof, cladding, windows), services rough-in, internal linings, fit-out and finishes, and a defined list of prime-cost and provisional-sum items. The items most often excluded - and most often the source of blow-outs - are council and certifier fees, engineering and soil reports, driveway and landscaping, upgraded appliances and tapware, and site costs such as rock excavation or retaining. Cost-plus contracts, where you pay actual costs plus a 15-25% margin, suit complex renovations where the scope cannot be fixed up front, but need tight reporting. Whichever contract you use, a 10-15% contingency on top of the quote is standard for Melbourne renovation and extension work.
What Affects Builder Costs in Melbourne
Site and access
Sloping blocks, tight inner-city access, rock and reactive clay soils all add to excavation, footings and labour time.
Structural complexity
Open-plan spans, cantilevers and second storeys mean more steel and engineering than a simple boxed extension.
Finish level
Standard project-home finishes versus architectural-grade joinery, stone and glazing can double the fit-out cost of the same floor area.
Council and compliance
Development approvals, heritage overlays, bushfire and flood ratings and energy requirements all add cost and time in Melbourne.
Age of the existing home
Pre-1990 homes often carry asbestos, outdated wiring and undersized footings that must be fixed before new work can start.
Builder demand
Established Melbourne builders with long waitlists price at a premium; smaller crews with capacity often quote sharper on straightforward jobs.
How to Save Money on Building Work in Melbourne
Frequently Asked Questions
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 →