Key findings
- The national average new detached house costs $1,967/m² ($474,939 over 241.5 m²) on ABS completion data — but new 2026 contracts sit higher.
- Melbourne is dearer than Adelaide: ABS averages are $1,914/m² (VIC) vs $1,788/m² (SA), and the gap widens at the custom/luxury end.
- Construction costs rose +1.0% in the June 2026 quarter and +2.8% over the year (Cordell/Cotality) — rising again, but below the five-year average.
- Renovations run $3,000–$5,000/m² and ground-floor extensions $3,500–$5,500/m² in metro Australia.
This report pulls together the credible public sources on Australian residential building costs and reads them for the two markets BuildPilot covers most closely: Adelaide and Melbourne. Where numbers come from completed projects (ABS) we say so; where they reflect current tenders (RLB/QS) we say that too. Nothing here is estimated by us without a cited basis.
1. The cost climate in 2026
The Cordell Construction Cost Index (CCCI) (Cotality (formerly CoreLogic)) shows construction costs rose +1.0% in the June 2026 quarter, up from +0.2% (March 2026 quarter), and +2.8% over the year to June 2026 (vs +2.3% (year to March 2026)). Costs are rising again after a brief slowdown, but growth stays below the five-year average and well under post-pandemic peaks. The pressure points are labour scarcity, supply constraints (notably pvc and pex piping), higher costs for heavy plant and machinery. For South Australia the quarterly rise was +1.0% and for Victoria +0.9%.
Quarterly escalation in labour + material costs. Adelaide (SA) and Melbourne (VIC) highlighted.
2. New-build costs: Adelaide
$1,788/m²
≈ $389,949 avg completed home
ABS 2024–25
$2,200 – $4,000/m²
base build, excl. land & GST
RLB Q4 2025 — Adelaide, custom (excl. GST)
The ABS figure is the official average of completed homes (contracts signed 12–24 months ago, all build types). New 2026 contracts — especially custom builds — sit higher, which is the market range.
Figures last verified June 2026.
Adelaide — cost to build by tier
| Build tier | Cost per m² | Est. total build (200 m² home, base build excl. land) |
|---|---|---|
| Budget / Basic – Volume project home | $1,600 - $2,200 | $320,000 - $440,000 |
| Mid-Range – Upgraded finishes | $2,200 - $2,800 | $440,000 - $560,000 |
| High-End / Custom – Bespoke design | $2,800 - $4,000 | $560,000 - $800,000 |
| Luxury – Architectural design | $4,000 - $6,000+ | $800,000 - $1.2M+ |
| Home size | Area | Est. total (mid-range) |
|---|---|---|
| 3-bedroom | ~180 m² | $395,000 - $505,000 |
| 4-bedroom | ~240 m² | $530,000 - $670,000 |
| 5-bedroom | ~300 m² | $660,000 - $840,000 |
At a mid-range rate of $2,200–$2,800/m² (base build, excl. land).
3. New-build costs: Melbourne
$1,914/m²
≈ $485,292 avg completed home
ABS 2024–25
$2,700 – $6,900/m²
base build, excl. land & GST
RLB Q4 2025 — Melbourne, custom (excl. GST)
The ABS figure is the official average of completed homes (contracts signed 12–24 months ago, all build types). New 2026 contracts — especially custom builds — sit higher, which is the market range.
Figures last verified June 2026.
Melbourne — cost to build by tier
| Build tier | Cost per m² | Est. total build (200 m² home, base build excl. land) |
|---|---|---|
| Budget / Basic – Volume project home | $1,900 - $2,700 | $380,000 - $540,000 |
| Mid-Range – Upgraded finishes | $2,700 - $3,600 | $540,000 - $720,000 |
| High-End / Custom – Bespoke design | $3,600 - $5,200 | $720,000 - $1.04M |
| Luxury – Architectural design | $5,200 - $6,900+ | $1.04M - $1.38M+ |
| Home size | Area | Est. total (mid-range) |
|---|---|---|
| 3-bedroom | ~180 m² | $485,000 - $650,000 |
| 4-bedroom | ~240 m² | $650,000 - $865,000 |
| 5-bedroom | ~300 m² | $810,000 - $1.08M |
At a mid-range rate of $2,700–$3,600/m² (base build, excl. land).
4. Adelaide vs Melbourne, head to head
Melbourne is consistently the more expensive market to build in. The gap is modest at the volume end but widens sharply for custom and luxury homes, where Melbourne's upper tiers run well above Adelaide's.
| Metric | Adelaide / SA | Melbourne / VIC |
|---|---|---|
| ABS official average ($/m²) | $1,788 | $1,914 |
| ABS avg completed home | $389,949 | $485,292 |
| Current market range ($/m²) | $2,200 – $4,000/m² | $2,700 – $6,900/m² |
| Mid-range 4-bed (~240 m²) | $530,000 - $670,000 | $650,000 - $865,000 |
| Luxury tier ($/m²) | $4,000 - $6,000+ | $5,200 - $6,900+ |
| Cost growth — June 2026 qtr | +1.0% | +0.9% |
Lower bound of the mid-range base-build estimate (excl. land). Melbourne runs consistently higher.
5. Renovations & extensions
For many owners in established Adelaide and Melbourne suburbs, the real choice is renovate or extend rather than build new. National metro ranges. Melbourne typically sits toward the upper end and Adelaide slightly below, in line with the ABS new-build gap (SA $1,788/m² vs VIC $1,914/m²).
| Work | Typical cost | Notes |
|---|---|---|
| Whole-home renovation (standard) | $3,000 – $5,000/m² | Full range $2,000 – $7,000+/m² by complexity and finish. |
| Ground-floor extension (shell) | $3,500 – $5,500/m² | Structural shell; fit-out costed separately. |
| Second-storey addition | $4,500 – $7,000/m² | Higher — structural reinforcement and roof lifting. |
| Kitchen renovation (mid-range) | $25,000 – $45,000 | Budget refresh $12k–$18k; premium designer $60k+. Archicentre 2026: $23k–$49k standard. |
| Bathroom renovation (mid-range) | $15,000 – $35,000 | Cosmetic refresh $8k–$15k; luxury $40k–$95k+. |
Add a 10–15% contingency on any renovation, and budget 8–15% of project value for pre-construction (design, engineering, council). Reno estimates should build up: structural shell → fit-out → upgrades to the existing home (re-plumbing/rewiring) → GST and fees.
6. The market: activity & outlook
June 2026 quarter (ABS, seasonally adjusted), total dwelling commencements reached 52,201 (+7.0% on the quarter), with new private houses up to 31,707 (+11.6%). Against the National Housing Accord target of 1.2 million homes by mid-2029 (National Housing Accord) — requiring ~262,140 homes a year — the industry still forecasts a projected shortfall of 186,000–204,000 homes. HIA expects detached home building to strengthen across most states through 2026–2028 — described as "steady, not explosive" — with land supply, labour and material costs the main constraints. The next ABS release is due 13 January 2027 (September 2026 quarter).
7. What it means for you
Budget on current tenders, not last year's averages: the ABS figure is a useful anchor, but new 2026 contracts — especially custom — sit above it. In both cities, add roughly 25–45% to a base-build figure for land, site works, fees and GST. If you're weighing a renovation, price the shell and the fit-out separately and keep a 10–15% contingency. And always treat a builder's fixed-price contract as the real number — per-m² rates are for planning only.
Editions
This report is a quarterly series — each edition refreshes with new ABS Building Activity and Cordell Construction Cost Index data as it's released. We publish an edition only when the source data is out, so figures are always real, never projected.
- Q2 2026 — June 2026 editionPublished
Current edition — ABS 2024–25 completions, Cordell CCCI June-2026 quarter.
Read this edition → - Q3 2026 — September 2026 editionScheduled
Publishes once ABS and the Cordell CCCI release September-quarter data. (ABS Building Activity (Sept-2026 quarter) releases 13 January 2027)
- Q4 2026 — December 2026 editionScheduled
Publishes with the December-quarter ABS and Cordell data. (Early 2027 (with Q4 source releases))
References
- [1] ABS Building Activity, Australia (2024–25 completions; June 2026 quarter commencements) — Official average build cost, floor area and commencements
- [2] Cotality (CoreLogic) — Cordell Construction Cost Index — Quarterly construction cost movement (labour + materials)
- [3] Rider Levett Bucknall (RLB) — construction cost report — Current market tender rates by city
- [4] Housing Industry Association (HIA) — New-home forecasts and cost commentary
- [5] Master Builders Australia — Housing supply forecasts and benchmarks
- [6] Archicentre Australia 2026 Cost Guide — Renovation and fit-out cost guidance
- [7] BMT Quantity Surveyors — Project-home $/m² benchmarks
Figures are indicative and for planning only, base build excluding land, site works, professional fees and GST unless stated. Verified June 2026 and reviewed quarterly as sources update. This report is general information, not financial, legal or construction advice.