How much does it cost to build a house in Melbourne

How much does it cost to build a house in Melbourne

The cost of building a house in Melbourne, Australia, can vary widely depending on several factors, such as the size of the house, the materials used, the location, and the complexity of the design.

What is the average cost of building a house in Melbourne?

According to HIA (Housing Industry Association), the average cost of building a new house in Melbourne in 2021 is around $350,000. As per the figures of ABS in April 2022, building a home costs around $473,000.

However, it’s worth noting that this is just an estimate, and the cost can be higher or lower depending on various factors.


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The average cost of building a home per square meter

Several factors may affect the cost of building a house in Melbourne, Australia. You can expect up to $620 - $3900 per sqm.

Please note that this amount doesn’t include design and decoration costs such as painting, planning, and permits.

According to ABS research, the typical Australian residence is 248 sqm, costing $320,238 to construct.


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The average cost of building a home, state-by-state

Source - ABS

Factors influence the cost of building a house in Melbourne 2023

The cost of building a house in Melbourne can be broken down into several components:

  • Land cost

The cost of the land on which you will build the house.

  • Design and engineering

The cost of designing and engineering the house plans, including architectural and structural drawings.

  • Permits and approvals

The cost of obtaining permits and approvals from local government and other authorities.

  • Location

Like in other large cities, construction prices are higher in Melbourne’s inner city than in distant suburbs. This is because of the high land costs. You can minimise it by purchasing a house and land package.

  • Construction

The cost of building the house, including materials and labour.

  • Finishes

The cost of finishing the interior and exterior of the house, including flooring, paint, and fixtures.

  • Size

Larger projects demand more materials and labour and take longer to finish. Larger homes cost more to build.

Additional costs to consider are:

  • Site works: Excavation, filling, and retaining walls if required.
  • Council and other fees: The local council may impose development application fees, building permit fees, and other charges.
  • Contingency: Allow for any unexpected costs that may arise during the construction process.

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Is it worth building a new house in Melbourne?

There are several options for house hunters in Melbourne. They may rent, buy or build a house. Building a new house is a cost-effective solution for many Melbourne first-time homebuyers.

Building your home lets you choose the style and layout. You’ll also be kept informed throughout the construction process, so you can be sure it’s done well.

With careful planning and a professional builder, a new home-building project will provide a beautiful house you’ll love for years.