A Stage-by-Stage Breakdown of Melbourne Home Construction Costs
Thinking about building your dream home in Melbourne? You’re not alone. With rising property prices and the flexibility of custom builds, more Australians are turning to new construction — but understanding the true cost is key to getting it right.
In this guide, we break down the real cost of building a house in Melbourne across each major stage, from land prep to final handover.
| Stage | What It Involves | Estimated Cost Range (AUD) |
|---|---|---|
| 1. Land & Site Prep | Buying the land, soil testing, council approvals, site clearing. Melbourne’s varied terrain means site prep costs can vary widely. Sloping blocks or areas with poor soil may require extra work (and budget). | $10,000 – $50,000+ |
| 2. Base/Foundation | Pouring the slab, initial plumbing and drainage. Solid foundations are essential, and they account for a large portion of early-stage costs. | $20,000 – $40,000 |
| 3. Frame & Lock-up | Building walls, roof, windows, external doors. It’s a major milestone — and the largest visible progress to date. Costs vary depending on home size and material choices. | $40,000 – $70,000 |
| 4. Fixtures & Finishes | Electricals, kitchen/bathroom fit-out, flooring, painting, lighting. It’s also the stage where cost blowouts are most common — choosing high-end fixtures can quickly stretch your budget. | $60,000 – $120,000+ |
| 5. Final Handover | Final inspections, certifications, occupancy permits. Make sure to budget for post-handover extras too, like furniture, blinds, or tech upgrades. | $5,000 – $10,000 |
| 6. Ongoing Costs | Landscaping, fencing, minor post-build adjustments, loan interest during build. | $10,000 – $30,000+ |
So, What’s the Total Cost to Build in Melbourne in 2025?
For a standard 3–4 bedroom home on a flat block in Melbourne, here’s what you might expect:
| Build Type | Approx. Total Cost |
|---|---|
| Budget (Basic Finishes) | $300,000 – $400,000 |
| Mid-Range (Quality Finishes) | $400,000 – $600,000 |
| Custom/Luxury | $600,000 – $900,000+ |
Tip: These figures exclude land purchase. Be sure to factor that in based on the suburb.