Building costs in Sydney range from $1,000 to $6,500+ per square metre depending on project type and finish level. Renovations start from $1,000/m² for cosmetic work. New builds and extensions run $2,500 to $7,000/m² depending on scope.
At Dura Group, we quote on residential building projects across the Sutherland Shire and greater Sydney every week. These figures are based on what we’re seeing right now on real jobs, not outdated industry averages.
Building Cost Per Square Metre in Sydney (2026)
- Basic renovation (cosmetic): $1,000 to $2,000 per m²
- Mid-range renovation: $2,000 to $3,500 per m²
- High-end renovation: $3,500 to $5,500 per m²
- Ground floor extension: $3,500 to $6,000 per m²
- Second storey addition: $4,500 to $7,000 per m²
- New home build (standard): $2,500 to $4,000 per m²
- New home build (premium): $4,000 to $6,500+ per m²
- Granny flat: $2,500 to $4,500 per m²
These are all-in costs covering design, approvals, construction, fit-out, and project management. Our guide to building in Georges River covers this in detail.
What’s Included in Building Costs Per Square Metre?
When a builder quotes a cost per square metre, make sure you understand what’s included. At Dura Group, our per-metre rates cover: (see our renovating in the Inner West)
- Structural work (footings, framing, roofing)
- Internal fit-out (flooring, painting, lighting)
- Plumbing and electrical
- Council approval fees
- Engineering and certification
- Project management
- GST
What’s typically NOT included: demolition of existing structures, landscaping, furniture, window furnishings, and any council contributions (Section 7.11 or 7.12 levies). Our guide to renovating in the Sutherland Shire covers this in detail.
Some builders quote low per-metre rates by excluding approvals, engineering, or site costs. Always ask for a fixed-price contract that spells out exactly what’s covered. Our guide on reading a building contract explains what each section means.
What’s Driving Building Costs in Sydney?
Labour
Skilled tradespeople in Sydney are in high demand. Plumbers, electricians, tilers, and carpenters command strong rates, and availability can affect your project timeline. At Dura Group, we work with the same trusted trades we’ve used for years. That consistency means better pricing and reliable scheduling.
Materials
Timber, steel, concrete, and plasterboard prices have stabilised after the 20-40% increases of 2022 to 2024, but they’re still well above pre-2020 levels. Imported materials (tiles, stone, fixtures) are affected by shipping costs and currency fluctuations.
Council and Compliance Costs
Development applications, BASIX certificates, engineering reports, and compliance inspections all add to the overall project cost. These are non-negotiable requirements, not optional extras. We handle all of this through our our DA approval service and CDC approval services.
Site Conditions
Rock excavation, asbestos removal, steep blocks, and limited access are common across the Sutherland Shire. These site-specific factors can add 5 to 20% to base building costs.
How to Get Accurate Building Costs
Get a Detailed Quote, Not an Estimate
An estimate is a guess. A quote is a commitment. At Dura Group, we provide detailed, fixed-price quotes after our planning review service. You know exactly what you’re paying before we start.
Compare Like for Like
When comparing quotes from different builders, check what’s included. The cheapest quote is often missing key items like engineering, approvals, or site preparation. Make sure you ask the right questions before committing, and read our guide on how to choose a builder in Sydney.
Budget for Contingencies
Set aside 10 to 15% of your total budget for unexpected costs. In renovation work, this covers discoveries behind walls and under floors. For new builds on clear sites, 5 to 10% is usually sufficient.
Building Costs by Project Type
Kitchen Renovation
$15,000 to $100,000+ depending on scope. Read our full kitchen renovation cost guide.
Bathroom Renovation
$10,000 to $70,000+ depending on size and finishes. Read our full bathroom renovation cost guide.
Home Extension
$150,000 to $600,000+ depending on whether you’re extending out or up. Read our full home extension cost guide.
Full Home Renovation
$80,000 to $300,000+ for multiple rooms. Read our full home renovation cost guide.
Why Dura Group
- Fixed-price contracts based on detailed scope, not rough estimates
- No material markups so your money goes into your home, not our margins
- 25+ years building across the Sutherland Shire
- Mark oversees every project from quote to completion
We build across the Sutherland Shire builders area, Hurstville home builders, Kogarah builders, and greater Sydney. Contact Dura Group today or call Mark on 0424 665 793 for a realistic quote on your project.
Frequently Asked Questions
How much does it cost to build per square metre in Sydney?
Building costs in Sydney range from $2,500 to $6,500+ per square metre for new builds and $1,000 to $5,500 per square metre for renovations, depending on the scope and quality of finishes.
Why are building costs so high in Sydney?
High labour demand, increased material costs since 2020, strict council and compliance requirements, and challenging site conditions (particularly in areas like the Sutherland Shire) all contribute to building costs in Sydney.
How can I reduce building costs?
Choose a builder who offers fixed-price contracts, doesn’t mark up materials, and provides detailed quotes upfront. If you’re weighing up options, our renovate or rebuild guide compares costs side by side. Keeping existing plumbing layouts, choosing mid-range finishes, and avoiding unnecessary structural changes also help control costs.
What is a good contingency budget for building?
For renovations, budget 10 to 15% contingency. For new builds on clear sites, 5 to 10% is usually adequate. Learn more about our home renovation services across Sydney’s south.
Mark Dura is the founder of Dura Group Building & Renovations, a licensed builder (Lic 381531C) with 27+ years of experience in residential renovations, home extensions, and knockdown rebuilds across Sydney. Mark oversees every project from design through to completion.
