Expanding your Melbourne home can be exciting — whether you need more living space, a new bedroom, or a larger kitchen. But before diving in, understanding the home addition cost in Melbourne is essential. Prices can vary based on the size, style, and complexity of your project. This guide breaks down the costs, explains influencing factors, and helps you plan a realistic extension budget for your dream home.
What Is a Home Addition?
A home addition involves adding new rooms or expanding existing spaces to increase your home’s livable area. Common examples include:
- Adding an extra bedroom or living room
- Expanding your kitchen or dining space
- Building a second storey
- Creating a home office or granny flat
In Melbourne, home additions are popular among families who want to stay in their neighbourhood but need more room without moving.
Average Home Addition Cost in Melbourne
In 2025, the average home addition cost in Melbourne ranges between $2,500 to $4,500 per square metre, depending on complexity and finishes.
Here’s what typically affects the pricing:
- Basic single-room additions: from $50,000 – $90,000
- Medium extensions (e.g., kitchen + dining): $100,000 – $180,000
- Large-scale or second-storey additions: $200,000 – $400,000+
Your addition pricing depends on structural requirements, permits, and materials.
Key Factors That Influence Home Addition Costs
1. Size and Scope of Work
The larger your addition, the higher the cost. Adding a 20m² space costs less per metre than a 60m² expansion because of economies of scale.
2. Structural Modifications
If your addition requires altering foundations, removing load-bearing walls, or adding new plumbing or electrical systems, costs increase significantly.
3. Materials and Finishes
High-end finishes such as stone benchtops, hardwood flooring, or designer fittings can quickly raise your expansion expenses.
4. Design Complexity
Simple box-style extensions are cheaper than intricate designs with custom roofs, angles, or glass walls. Custom architectural designs add both cost and value.
5. Permits and Regulations
Melbourne councils require building permits and may request planning approval. Expect to spend around $1,000–$3,000 on permits alone.
6. Builder Selection
Builder rates vary widely across Melbourne. Always compare multiple quotes and check reviews before deciding.
How to Plan Your Home Addition Budget
Setting a realistic home extension budget prevents overspending. Here’s how to prepare:
- Define your must-haves and nice-to-haves.
- Request multiple detailed quotes from licensed builders.
- Include 10–15% contingency for unexpected issues.
- Ask for a fixed-price contract when possible.
- Consider future resale value to ensure good ROI.
Working with an experienced Melbourne builder ensures transparency and a smoother building process.
Cost Breakdown by Type of Home Addition
Single-Storey Addition
Adding one or two rooms on the ground level is the most common choice. Expect to pay $70,000–$150,000, depending on design and materials.
Second-Storey Addition
A two-storey addition is ideal when land is limited. Prices start around $180,000 and can exceed $400,000, especially if major roof restructuring is needed.
Garage or Granny Flat Conversion
Turning an existing garage into a living space can cost $40,000–$90,000, while a detached granny flat averages $100,000–$150,000.
Saving Money on Home Additions
You can reduce costs without sacrificing quality:
- Opt for standard materials instead of custom finishes.
- Keep plumbing and electrical work close to existing systems.
- Choose a simple design layout to minimise labour costs.
- Get multiple builder quotes for comparison.
- Manage small tasks yourself (like painting or landscaping).
Top Mistakes to Avoid
Many homeowners underestimate the total cost or time needed. Avoid these pitfalls:
- Not getting a fixed-price contract.
- Ignoring permit requirements.
- Starting construction without a detailed design plan.
- Forgetting to factor in temporary accommodation costs if you need to move out.
FAQs: Home Addition Cost in Melbourne
1. How much does a typical room addition cost in Melbourne?
Expect between $70,000–$120,000 for a single room, depending on materials and labour.
2. Is it cheaper to build up or build out?
Building out (ground floor) is generally cheaper, but building up can be better for small blocks.
3. Do I need council approval for a home addition?
Yes. Most extensions require both planning and building permits from your local council.
4. How long does a home addition take?
Average timelines range from 12 to 24 weeks, depending on scope and weather.
5. Can I live in my house during construction?
In most single-storey additions, yes — but it may be noisy and dusty. For second-storey builds, temporary relocation might be needed.
Conclusion
Building a home addition in Melbourne is a major investment that adds comfort, functionality, and value to your property. With proper planning, the right builder, and a clear extension budget, you can expand your home without financial stress. Whether you’re adding a new bedroom, family space, or a second storey, understanding your addition pricing helps you make informed decisions.
Ready to get started? Contact a trusted Melbourne home builder to discuss your project and receive an accurate price estimate today.
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- Modern Melbourne home with new extension (Alt: Home addition in Melbourne suburb)
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- Family standing in newly renovated living space (Alt: Melbourne home expansion completed)
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- “House Extension Cost Melbourne”
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