Home Builders and Renovation Builders in Melbourne 2026, How to Find a Licensed Melbourne Builder and What Renovations Cost

Home Builders and Renovation Costs in Melbourne 2026

Melbourne has one of Australia's most active residential building markets. All domestic building work in Victoria valued at $10,000 or more requires a Domestic Builder Unlimited licence or appropriate category licence from the Victorian Building Authority (VBA). Builders must hold Domestic Building Insurance (DBI) for all contracts over $16,000, this protects homeowners for up to six years after construction completes. Always verify your Melbourne builder's VBA registration at vba.vic.gov.au before signing any building contract.

Home Renovation Costs in Melbourne 2026

• Kitchen renovation (mid-range, supply and install), typically $23,000-$50,000 in Melbourne
• Bathroom renovation (mid-range, full renovation), typically $17,000-$38,000 in Melbourne
• House extension (ground floor, single storey, basic), typically $2,300-$3,800/sqm in Melbourne
• Second storey addition (full storey, basic), typically $2,800-$4,800/sqm in Melbourne
• Knockdown rebuild (standard 200-300sqm home), typically $350,000-$750,000+ in Melbourne depending on specification
• New home construction (200sqm, mid-range specification), typically $300,000-$600,000+ in Melbourne (land not included)
• Granny flat / secondary dwelling (60sqm), typically $100,000-$180,000 in Melbourne

What to Know Before Hiring a Melbourne Builder

Melbourne's building permit process requires a registered Building Surveyor (private or council) to issue building permits for most renovation and construction works. Melbourne's Heritage Overlay and Neighbourhood Character Overlay in inner-suburban councils (Stonnington, Port Phillip, Yarra) can significantly affect what is permissible in renovation designs. Victoria's building regulations are updated regularly, ensure your Melbourne builder is current with the National Construction Code (NCC) 2022 requirements including 7-star NatHERS energy ratings now mandatory for new Victorian homes. The Domestic Building Contracts Act 1995 governs all residential building contracts in Victoria.

This article was compiled by AI and screened before publishing. See our editorial standards.