Extending your home in Melbourne continues to be one of the most effective ways to gain space while staying in the location you love. In 2026, more homeowners are choosing to improve and expand rather than compete in a tight property market. Whether the goal is a larger family living area, a refined kitchen, or additional bedrooms, a well planned home extension can transform both lifestyle and long term property value.
Before moving forward, it is essential to understand how much a home extension realistically costs in today’s market. This guide outlines current Melbourne extension pricing, what influences those costs, and how to plan your project with confidence.
What Does a Home Extension Cost in Melbourne in 2026?
Home extension pricing varies depending on design, build quality, site conditions and the level of customisation involved. In 2026, construction costs remain influenced by labour availability, material pricing and higher performance requirements under updated building standards.
As a general guide, homeowners should expect the following ranges for professionally built, high quality extensions in Melbourne.
Ground Floor Extension Costs
Ground floor extensions remain the most common choice for homeowners looking to improve living areas, kitchens and family zones.
Typical cost ranges in 2026 are:
- Entry to mid-level builds: $2,700 to $4,900 per square metre
- Custom designed extensions with architectural input: $3,900 to $5,800 per square metre
- Premium bespoke extensions with luxury finishes: $5,800 to $11,500 per square metre
Projects at the upper end of the scale usually include custom joinery, premium glazing, stone surfaces, architectural cladding and carefully integrated indoor and outdoor spaces. Homes in established Melbourne suburbs often require additional structural work, which should also be factored into budgets.
For example, a 75 to 90 square metre extension designed to accommodate a new kitchen, dining space and family living area can vary significantly in price depending on finish level and site complexity.
Second Storey Extension Costs
Second storey extensions are a popular solution where land size is limited but additional bedrooms or bathrooms are required.
In 2026, second storey additions in Melbourne typically fall within these ranges:
- Standard to mid-range builds: $4,100 to $5,500 per square metre
- Architecturally designed second storeys: $5,500 to $6,500+ per square metre
A second storey of approximately 100 square metres may cost from $410,000 through to $650,000 or more. Costs increase where significant structural upgrades, stair redesigns or roof modifications are required.
Key Factors That Affect Extension Pricing
No two extension projects are the same. Several elements directly influence the final cost of your build.
Size and Layout
Larger extensions require more materials, labour and structural support. Open plan designs can also require longer spans and upgraded beams.
Design Detail
Custom architecture, non-standard layouts and detailed finishes increase both design and construction costs.
Material Selection
Premium finishes such as natural stone, timber flooring, custom windows and designer fixtures add value but also increase budgets.
Site Conditions
Restricted access, sloping land, older foundations or heritage considerations can significantly affect build complexity.
Plumbing and Electrical
New bathrooms, kitchens or relocated services add cost due to increased labour and compliance requirements.
Permits and Compliance
Planning overlays, neighbourhood character requirements and council conditions can extend timeframes and costs.
Costs Beyond Construction
A realistic extension budget includes more than just building work.
Design and Professional Fees
Architectural design, engineering and documentation generally range from $8,000 to $30,000 depending on project complexity.
Council and Approval Fees
Planning and building permits in Melbourne typically range between $1,500 and $7,500 depending on the council and scope of works.
Site Preparation and Demolition
Removing existing structures, excavation and ground preparation can add $12,000 to $40,000.
Contingency Allowance
A contingency of 10 to 20 percent is recommended to manage unforeseen conditions discovered during construction.
For guidance on preparing for approvals and documentation, visit our internal resource:
Planning Your Home Extension
Common Types of Home Extensions
Choosing the right extension type depends on block size, home layout and long term goals.
- Rear extensions to expand living and dining areas
- Side extensions to add bedrooms or studies
- Wrap-around extensions combining side and rear space
- Second storey additions for growing families
- Self-contained units or granny flats for extended family living
Each option carries different structural, planning and cost considerations that should be assessed early in the design process.
Planning an Extension the Right Way
Successful extensions start with careful planning and the right professional advice.
- Clearly define how you want the space to function
- Establish a realistic budget that includes all associated costs
- Engage an experienced builder and design team early
- Confirm council requirements before finalising plans
- Decide whether you will live in the home during construction
Homeowners can also refer to independent guidance on building regulations through the Victorian Building Authority:
https://www.vba.vic.gov.au
Selecting the Right Builder
The builder you choose has a direct impact on cost control, build quality and the overall experience.
When comparing builders, look for:
- Proven experience in home extensions and renovations
- Transparent and detailed pricing
- Strong communication throughout the build
- Registration with the Victorian Building Authority
- A portfolio that reflects your desired level of finish
An experienced extension builder will help you navigate complexities, reduce risk and ensure the finished home feels cohesive rather than added on.
Final Thoughts on Extending Your Home in 2026
A home extension is a significant investment, both financially and emotionally. With construction costs remaining strong across Melbourne in 2026, careful planning and informed decision-making are more important than ever.
By understanding current pricing, engaging the right professionals and allowing for appropriate contingencies, homeowners can create spaces that enhance everyday living while supporting long-term property value. This is particularly relevant in established suburbs such as Ringwood, Park Orchards, Doncaster, and many inner Melbourne suburbs, where well-designed extensions can significantly improve both functionality and resale appeal.
At Karja Builders, we specialise in high quality, architecturally considered home extensions across Melbourne’s eastern, inner and leafy suburban areas. Our approach focuses on clarity, craftsmanship and seamless project delivery. If you are considering extending your home in 2026, we welcome the opportunity to discuss your plans and provide tailored advice.