Cost guide
How much does it cost to build a house in Melbourne?
Written and verified by Struqt’s registered architects · Last verified June 2026
Building a new house in Melbourne in 2026 typically costs $1,800–$3,000/m² with a volume builder, or $3,500–$5,500+/m² for a custom build. Metropolitan Melbourne sits at the higher end of these ranges, with regional Victoria generally lower.
Source: ABS — Total Value of Dwellings
Key takeaway: Builder type is the biggest single lever: a custom build can run close to double a volume build per square metre — before your block’s site costs are added.
Volume vs custom builder
Most new houses are built one of two ways — and the choice sets your starting rate.
Volume / project builder
$1,800–$3,000/m²
Common in Melbourne's growth areas (Wyndham, Hume, Casey), where house-and-land packages are frequently advertised — from builders like Metricon, Simonds, Carlisle Homes and Henley.
- Display homes
- Fixed-price contracts
- Standard inclusions
e.g. Metricon · Simonds · Carlisle Homes · Henley
Custom build
$3,500–$5,500+/m²
Suits knock-down rebuilds, extensions and sites needing careful design — restrictive lots, sloping land or heritage requirements.
- Design flexibility
- Tailored to your site
- Freedom of selections
Rate × floor area only — before site costs, planning layers and external works.
What impacts the price of your build
- Metropolitan Melbourne typically sits at the higher end of these ranges due to higher labour and material costs; regional Victoria is generally lower.
- Heritage, flooding and bushfire (BAL) planning layers can each add significant cost to a Melbourne build.
Sloping or difficult land
$20,000–$100,000+Retaining walls, earthworks (cut & fill) and split-level designs all add cost on a sloping block.
Soil type
$10,000–$80,000+Your soil classification drives footing cost. Reactive clay needs more extensive footings and reinforcement; rocky ground costs more to excavate.
Planning layers
$15,000–$60,000+Heritage, flooding and bushfire planning layers can add significant cost to a build.
What is overlay? →Service connections
$10,000–$30,000Sites without access to sewer, water or other services can need on-site solutions such as septic tanks or large rainwater tanks.
Internal fitout
Tens of thousandsFlooring, joinery, tiling heights, air conditioning and plumbing fixtures vary greatly in cost. Higher specifications can add tens of thousands of dollars.
External works
Often excluded from contractFootpaths, driveways, fencing and landscaping are commonly left out of contract pricing but are important to budget for.
How Melbourne compares
What’s included — and what’s not
A builder’s contract price usually covers the house itself — slab, frame, roof, external cladding, internal linings and the internal fit-out to your agreed specification. It often excludes the “site costs” of building on your particular block, and external works like driveways, fencing and landscaping. Always budget a 10–20% contingency on top of your build cost.
Frequently asked questions
How much does it cost to build a house in Melbourne?
A new house in Melbourne typically costs $1,800–$3,000/m² with a volume builder and $3,500–$5,500+/m² for a custom build. Metro Melbourne sits at the higher end; regional Victoria is generally lower.
Are house-and-land packages cheaper in Melbourne's growth areas?
House-and-land packages in growth corridors like Wyndham, Hume and Casey are often advertised at competitive volume-builder rates. The headline price rarely includes external works and site costs, so budget those separately.
Disclaimer. The figures in this guide are estimates intended as a planning guide only. Actual costs vary significantly depending on your site, design, specification and current market conditions. Always seek detailed quotes from licensed builders, and factor in a contingency of 10–20% before committing to a budget.
Get the exact cost for your block
These are typical ranges. Run any Australian address through Struqt to see what’s actually possible on your specific property — architect-authored, government-data-backed.