Cost · 12 August 2026 · 8 min
What it actually costs to build in Melbourne in 2026
Working ranges for custom homes, knockdowns and extensions. Not a brochure number designed to get you in the door.
Melbourne build costs have settled after the spike years, but they have not gone back. Anyone quoting a custom home at $2,000 a square metre is selling a specification you will not want to live with.
As a working guide for 2026, elevated house and land construction sits around $2,200 to $2,800 per square metre. A considered custom home in the inner east or Bayside is $3,200 to $4,500 per square metre. Fully specified architectural work runs $5,000 to $7,500 per square metre and up.
Extensions cost more per metre than new homes because you are cutting into an existing structure. Budget $4,000 to $5,500 per square metre plus a genuine contingency.
The number that matters is not the first quote. It is the number at handover. That is why a specification should be attached to any contract.