How much does it cost to build or renovate in 2026?
Real per square metre figures for new homes, renovations and commercial builds in nine cities, with the source and date for every number.
A new house in Australia averaged $1,967 per square metre to build in 2024-25 (ABS data, excluding land), ranging from $1,585 in WA to $2,538 in Tasmania. Custom and architect designed homes cost about $2,150 to $7,600 per sqm depending on the city (RLB, late 2025). Extensions typically run $2,000 to $4,000 per sqm, and a second storey $200,000 to $450,000.
How much does a new home cost per square metre?
The average new house in Australia cost $1,967 per square metre to build in 2024-25, based on ABS building activity data (average cost $474,939 for an average 241.5 sqm house). That figure excludes land. By June 2026 the average new house approval was worth $529,790 in construction value alone.
The state averages below are mostly project and volume homes, so treat them as the floor. The second column is the quantity surveyor range from Rider Levett Bucknall (RLB) for custom or architect designed houses, priced at the end of 2025.
| City | State average, new house (2024-25) | Custom or architectural house (RLB, Q4 2025) |
|---|---|---|
| Sydney | $2,396 per sqm (NSW) | $2,500 to $7,600 per sqm |
| Melbourne | $1,914 per sqm (VIC) | $2,700 to $6,900 per sqm |
| Brisbane | $1,987 per sqm (QLD) | $3,150 to $5,800 per sqm |
| Gold Coast | $1,987 per sqm (QLD) | $3,150 to $5,800 per sqm (Brisbane rates) |
| Perth | $1,585 per sqm (WA) | $3,100 to $5,100 per sqm |
| Adelaide | $1,788 per sqm (SA) | $2,200 to $4,000 per sqm |
| Canberra | $2,160 per sqm (ACT, incl. GST) | $2,150 to $4,200 per sqm |
| Hobart | $2,538 per sqm (TAS) | No RLB Hobart edition |
| Darwin | $2,302 per sqm (NT Top End) | $2,450 to $4,500 per sqm |
State averages are ABS figures for new detached houses completed in 2024-25, as published by Master Builders NSW (ACT figure via Duo Tax). They are statewide, not city figures; Sydney metro builds are likely to cost more than the NSW average. RLB rates exclude GST, land, site works and professional fees. The Gold Coast has no separate RLB house table, and RLB rates it at 99 against Brisbane at 100.
A quick sense check: a 250 sqm single storey home at the Brisbane state average comes to about $497,000 before land, while the same floor area built to an architect's design at RLB's Brisbane rates runs from about $790,000 to $1.45 million.
How much does a renovation or extension cost?
A single storey ground floor extension usually costs $2,000 to $4,000 per square metre nationally, and a second storey addition typically lands between $200,000 and $450,000 in total. These are consumer guide figures, so read them as indicative ranges rather than quantity surveyor rates.
| Project | Indicative cost | Notes |
|---|---|---|
| Ground floor extension | $2,000 to $4,000 per sqm | National (hipages, January 2026) |
| Ground floor extension, Queensland | $2,500 to $6,000 per sqm | Outer suburbs low end, inner city character homes high end (The Quote Yard, May 2026) |
| Second storey addition | $1,850 to $3,500 per sqm; about $200,000 to $450,000 total | National (hipages, January 2026) |
| Raise and restump to legal height (QLD) | $30,000 to $70,000 | Lift only (The Quote Yard, September 2026) |
| Build under fitout (QLD) | $80,000 to $200,000 | Bedrooms and storage at the low end, kitchens and bathrooms at the high end |
| House demolition, 3 bedroom | About $17,000; $40,000 or more for hard sites | National (hipages); asbestos removal is extra |
| Knockdown rebuild, 3 to 4 bedroom single storey | $450,000 to $1,000,000 | Typical $650,000 incl. GST (What's The Damage, October 2026) |
A Queensland raise and build under, adding the lift and the fitout together, comes to roughly $110,000 to $270,000. For more on these jobs, see our Brisbane renovation builders.
Kitchens and bathrooms by city
Mid-range totals including GST, from What's The Damage city guides (October 2026). Budget and premium jobs fall well outside these ranges.
| City | Kitchen, mid-range | Bathroom, mid-range |
|---|---|---|
| Sydney | $28,750 to $51,750 | $23,000 to $40,250 |
| Melbourne | $26,250 to $47,250 | $21,000 to $36,750 |
| Brisbane | $25,000 to $45,000 | $20,000 to $35,000 |
| Gold Coast | $24,500 to $44,100 | $19,600 to $34,300 |
| Perth | $26,250 to $47,250 | $21,000 to $36,750 |
| Adelaide | $23,000 to $41,400 | $18,400 to $32,200 |
| Canberra | $27,500 to $49,500 | $22,000 to $38,500 |
| Hobart | $22,500 to $40,500 | $18,000 to $31,500 |
| Darwin | $25,000 to $45,000 | $20,000 to $35,000 |
What does commercial construction cost per square metre?
RLB's 2026 digests price a good quality office fitout at roughly $1,180 to $7,100 per square metre depending on the city and the fitout, and a single storey warehouse at about $840 to $2,000 per square metre. All rates exclude GST, land, site works and professional fees, and are priced at the end of 2025.
| City | Office fitout | Retail (small shops) | Warehouse or industrial | Tender price forecast, 2026 |
|---|---|---|---|---|
| Sydney | $1,860 to $5,800 | $2,150 to $3,000 | $1,060 to $1,740 | 4.0% |
| Melbourne | $1,440 to $5,500 | $2,300 to $2,950 | $1,160 to $1,740 | 4.0% |
| Brisbane | $2,200 to $4,200 | $2,650 to $3,200 | $1,360 to $1,960 | 5.0% |
| Gold Coast | $2,200 to $4,200 (Brisbane rates) | $2,650 to $3,200 | $1,360 to $1,960 | 5.5% |
| Perth | $1,180 to $3,200 | $1,520 to $4,050 | $840 to $1,600 | 5.3% |
| Adelaide | $1,760 to $3,550 | $1,820 to $2,600 | $1,140 to $1,760 | 5.1% |
| Canberra | $1,900 to $7,100 | $1,560 to $3,250 | $910 to $1,720 | 4.3% |
| Darwin | $1,680 to $4,500 | $2,000 to $2,800 | $1,360 to $2,000 | 5.0% |
Rates are per square metre. Office fitout includes workstations and loose furniture; the low end is an open plan office, the high end a fully partitioned professional office. Warehouse rates are for a large single storey shed, metal clad at the low end and precast concrete at the high end. RLB publishes no Hobart edition.
For medical work, a commercial builder's guide citing Matrix Estimating puts a new medical centre at $3,000 to $6,500 per sqm nationally, and clinic fitouts in an existing shell are commonly quoted at $1,500 to $3,000 per sqm. Neither is a quantity surveyor's city rate, so use them as a starting point only. Our commercial builder listings cover fitout and medical specialists.
Are building costs still going up in 2026?
Yes, but at a steadier pace than earlier in the decade. The Cordell Construction Cost Index rose 2.8% in the year to June 2026, against a cumulative 29.5% over the past five years. What buyers pay builders for new homes rose faster: the ABS new dwelling price index was up 5.8% in the year to June 2026, because builder margins, labour and overheads sit on top of materials.
For commercial work, RLB forecasts tender prices rising between 4.0% (Sydney and Melbourne) and 5.5% (Gold Coast) during 2026. If your quote is more than a few months old, expect it to move.
What pushes building costs up?
The biggest swings come from the site and the design, not the bricks. The same floor plan can vary by six figures between two blocks.
- Slope and soil. Sloping blocks and reactive or rocky ground need deeper footings, retaining walls and more excavation.
- Access. Narrow inner city lots, no rear lane or no room for a crane slow every trade and add hire costs.
- Bushfire and flood overlays. A bushfire attack level (BAL) rating or flood level can dictate materials, glazing and floor height.
- Storeys and shape. Every corner, cantilever and change of roof line adds labour. Second storeys need engineering and often new footings below.
- Finishes. Joinery, stone, tiling and glazing are where mid-range and premium jobs part ways.
- Existing conditions. On renovations, old wiring, termite damage and asbestos only show up once walls come down. RLB demolition rates exclude asbestos removal.
- Approvals and consultants. Architects, engineers, certifiers, council fees and reports such as soil, energy and BAL sit outside per sqm build rates.
How do you compare builder quotes?
Compare what is included, not just the bottom line. A cheap quote can end up at the same final cost once allowances and exclusions are paid for.
- Check the price includes GST and says so in writing.
- Find the site costs. Excavation, rock, retaining, service connections and drainage are common exclusions on new homes.
- Add up provisional sums and prime cost items. These are estimates for work or fittings not yet priced or chosen, and they move. A quote with large or low allowances is not a fixed price. Our contracts guide explains them.
- Read the exclusions list line by line. Landscaping, driveways, fencing, window coverings and appliances are often left out.
- Check the deposit and payment stages. Most states cap deposits, for example 5% on Queensland jobs of $20,000 or more and 10% in NSW.
- Confirm the licence and insurance. See how to check a builder's licence and home warranty insurance.
Then use our questions to ask a builder before you sign.
Common questions
How much does it cost to build a house in Australia?
The average new house in Australia cost $474,939 to build in 2024-25, for an average floor area of 241.5 sqm (ABS data). That excludes land, and the June 2026 average approval value had risen to $529,790. In NSW, at $2,396 per sqm, a house of the same size comes to about $579,000 before land, and custom designs cost far more.
Is it cheaper to knock down and rebuild or renovate?
It depends on how much of the house you are changing. A knockdown rebuild of a 3 to 4 bedroom single storey home typically costs $450,000 to $1,000,000 including GST. If you are replacing most of the floor area, rebuilding is often better value than extending an old house with hidden structural problems. For one or two rooms, renovating usually costs less.
Does the cost per square metre include land?
No. Every per square metre figure in this guide excludes land. The RLB quantity surveyor rates also exclude GST, site works and professional fees such as architects, engineers and certifiers, so add those on top when you build a budget.
Why is building in Sydney more expensive than Perth?
ABS data puts the average new house in NSW at $2,396 per sqm against $1,585 in WA for 2024-25. Part of the gap is house size: WA homes averaged 256.8 sqm against 236.1 sqm in NSW, and larger homes spread fixed costs such as kitchens and bathrooms over more floor area. Custom builds narrow the gap, with RLB rating Perth at $3,100 to $5,100 per sqm.
How much does a second storey addition cost?
A second storey addition typically costs $200,000 to $450,000 in total, or $1,850 to $3,500 per sqm, according to hipages (January 2026), with an average around $300,000. Large, complex or high end additions can reach $15,000 per sqm. Engineering, new footings and temporary accommodation while the roof is off are common extra costs.
Sources
- Master Builders NSW: Cost of constructing Australian homes (ABS data, 2024-25), May 2026
- Duo Tax Quantity Surveyors: Cost to build a house in Australia (ACT figure)
- RLB Riders Digest 2026, Sydney
- RLB Riders Digest 2026, Melbourne
- RLB Riders Digest 2026, Queensland
- RLB Riders Digest 2026, Perth
- RLB Riders Digest 2026, Adelaide
- RLB Riders Digest 2026, Canberra
- RLB Riders Digest 2026, Darwin
- Cotality: Cordell Construction Cost Index, June 2026 quarter
- The Good Builder: ABS new house approvals and new dwelling inflation, June 2026
- hipages: How much do house extensions cost?
- hipages: How much does a second storey addition cost?
- hipages: How much does it cost to demolish a house?
- The Quote Yard: Home extensions QLD 2026
- The Quote Yard: Restumping QLD 2026
- What's The Damage: Builder cost guide
- What's The Damage: Kitchen renovation cost Sydney
- What's The Damage: Bathroom renovation cost Sydney
- BSG Commercial: Cost of commercial building 2025-26
- MedicalSearch: Medical clinic fitout costs explained