How Much Does It Cost to Build a 2 Storey House in Australia 2025

Building a 2-storey house in Australia doesn’t come with a one-size-fits-all price tag. In fact, the cost can vary quite significantly depending on where you plan to lay your foundations. In South Australia, you might spend around $275,000. Head up to Western Australia, and the figure rises to about $298,000.

Have you ever wondered what’s causing these differences? The cost to build a 2 storey home depends on multiple factors such as location, materials and design complexity. Besides this, per square metre land prices across cities are influenced by labour availability, land condition and quality of finishes. 

As experienced builders, we will help you understand how much is the average cost to build a house in Australia, city-by-city breakdown and factors that affect the cost to build 2 storey house 2025 in this blog..

Average Cost To Build A 2 Storey House Per Square Metre

According to Matrix Estimating, the average cost to build a two-storey house in Australia in 2025 is generally between $2,000 and $4,000 per square metre. However, this can vary significantly based on factors like location, design complexity, materials, and builder choice. 

City-by-Cost Breakdown

The Australian Bureau of Statistics suggests that building costs have grown significantly over recent years. The BBC has revealed that house prices in Australia have grown by 39.1% in the last five years. As expert builders, we have provided a city-by-city breakdown of constructing a 2 storey home in Australia. This analysis helps in determining land costs, labour rates, material prices and permit fees. It provides a budget for building two storey house and reducing extra expenses.

How Much Does It Cost to Build a 2-storey House in Perth?

Building a two-storey building in Perth depends on the average cost for building basic to luxurious homes, along with key factors such as labour cost. So, if you ask how much does it cost to build a house in Perth, these considerations are as follows:

• Average cost: The Cost of 2 storey house Perth 2025 falls between $350,000 and $650,000. Such prices are subject to being lower or higher depending on the land size, bedrooms and selected house type. The per square metre pricing is $1,900 – $3,700.
• Key Factors: According to the Housing Industry Association, labour shortages have increased building costs by 5.5% in the last 12 months to March 2025. At the same time, in East Cannington, for example, topography coupled with soil quality can necessitate enormous earthworks. 

How Much Does It Cost to Build a 2-storey House in Sydney?

Sydney is expensive for home building due to restricted land supply as well as rising construction and labour costs. Here are these factors discussed below:

• Average cost: Sydney is popular for the most expensive area to construct a 2 storey house, with an average cost range of between $400,000 and $900,000. The cost of per square meter of land for standard builds will range from $2,500 to $4,000.
• Key Factors: The construction of a house in Sydney is more expensive because of a shortage of carpenters, electricians and bricklayers. The Sydney local environment is strict with all-encompassing building codes that incorporate both energy efficiency and sustainability scales. Therefore, getting approvals is an expensive process. The mandatory BASIX (Building Sustainability Index) compliance adds between $15,000 and $30,000 to construction costs. For more detailed information on local building regulations, check out the City of Sydney Council.

How Much Does It Cost to Build a 2-storey House in Melbourne?

Melbourne is also expensive in terms of home building, but it is less costly than Sydney because it does not face challenges related to land and labour. Here are the factors mentioned below:

• Average Cost: In Melbourne, the cost to build two storey house ranges between $350,000 and $750,000. The per square meter costs of construction in this city lie between $2,000 and $3,800. These price structures are guided by the size of the home, layout and material used. 
• Comparison with Sydney: While the cost to build a two storey house in Melbourne is high by national standards, it remains below that in Sydney due to multiple factors. Sydney has severe labour shortages, while Melbourne is not facing such challenges. Moreover, regulations in Melbourne are less complex than Sydney, which reduces the overall approval and compliance for building a house. Building a house in Melbourne is around 41% cheaper than it is in Sydney. 

How Much Does It Cost to Build Two-Storey House in Brisbane?

Due to having a flood-prone area, Brisbane has to maintain high standards of flood-proofing solutions. Some of  them are discussed along with the average cost:

• Average Cost: The budget to build a two-storey house in 2025 is between $330,000 and $700,000. Building cost per square metre is between $1,800 and $3,500. Cost in these cases depends on home size and material usage.
• Flood-Prone Area Considerations: Brisbane is itself positioned on a flood plain, and therefore, very high standards of flood-resilient building are required. These requirements include a floor level elevation above minimum flood heights, use of flood-resistant materials, such as polished concrete or tiles, waterproof cabinetry, adequate drainage and removable risers for the sake of being able to recover during floods. 

How Much Does It Cost to Build A 2 Storey House in Adelaide

Having a low labour cost makes Adelaide an affordable location in which to build homes. The state government also supports this practice. Here are the average costs and initiatives from the state government:

• Average Cost: New two-story home construction costs in 2025 range between $310,000 and $650,000. In Adelaide, the cost per square meter ranges from $1,700 to $3,200. 
• Reasons for Lower Labour Costs in Adelaide: The state government’s investment in infrastructure and training has created a less saturated market for skilled workers. While Adelaide’s economy operates near capacity, the scale and competition for resources are lower. This results in more moderate labour cost escalation.

Comparative Summary Table For The Cost To Build A Two-Storey House 2025

As experienced builders, we’ve put together this summary to give you a clear picture of what it might cost to build your 2-storey home in key cities like Perth, Sydney, Melbourne, Brisbane, and Adelaide. We’ve considered not only the average construction costs but also the unique local factors that can significantly impact your final budget. This breakdown is designed to help you plan smarter and avoid surprises down the line.

Disclaimer: Costs are estimates and vary based on location, materials, and market conditions. Consult a local builder for a precise quote.

Factors that Affect the Cost to Build a two Storey House

If you are planning to build a house, as experts, we can say that there are quite a few critical things to consider when designing a modern home in Australia in 2025. Several factors affect the cost to build a 2 storey house, which are as presented below:

Design:

We recommend giving serious thought to your architectural design early in the planning phase, as it has a direct impact on the overall cost of two-storey home construction. For example, complexities with custom features,  multiple levels, addition of bedrooms or any other detailing increase expenses and construction challenges. In contrast, simple and standardised designs remain cost-effective.

Materials:

Cost to build two storey house in 2025 per square metre averages may vary under finishes and additional things to the house. 

Site:

This aspect is discussed concerning topography, the condition of the soil and accessibility costs. For example, it is affordable to prepare a flat roof. While sloped sites with poor access will necessitate other tasks like grading, retaining walls and excavation, the inclusion of such activities has a huge cost effect.

Location:

Construction cost is affected due to differences in labour rates, material availability and local regulation, these factors vary for each location. 

Size and Complexity:

Larger homes, such as 3bhk or 4bhk, require more materials and labourers.  Two storey homes often cost more than single ones due to the need for a staircase, stairwells, and additional construction safety equipment such as scaffolding. Meanwhile, complexities include intricate designs or custom features that increase home-building costs.

Fixtures and Fittings:

These include lighting, kitchen appliances, bathroom vanities, and tapware. Installing this equipment from high-end brands increases the upfront cost, whereas sticking with the affordable ones maintains the budget.

Land Preparation:

Land preparation involves cutting down or clearing vegetation, trees, stump removal, grading, levelling, erosion control, testing of soil, installing termite barriers and utility connection. These costs range from $14,000 up to $20,000, depending on the complexities and layout of the home.

Labour Shortages:  

It leads to increased labour costs and project delays. These factors raise overall construction costs and create supply chain pressures.

Permitting and Fees:

These costs include application fees, building permits, inspections, development approvals, and associated government activities. It also depends on the project size and location.

Economic Climate:

Factors such as inflation, interest rates, employment levels, and market demand highly influence home-building costs.

Tips to Save Money on Your Build

Here is some expert advice from our end to help you reduce the strain on your wallet while building a new home: 

1. Choose project builders

To pick the right builder, look for companies with a strong reputation and positive client testimonials. Some project builders offer fixed price packages for design, approvals and construction.

2. Avoid design changes mid-build

Detailed planning with a professional architect can reduce costly design changes during construction. To mitigate this, maintain regular communication with the project builder to anticipate and manage potential design adjustments. Visit the NSW Planning Portal and learn in detail about the planning policies in your state to avoid expensive re-designs in the middle of the construction phase.  

3. Compare 3-5 quotes

Collect about three to five quotes from different builders to benchmark prices and services. While benchmarking, consider quality, services and communication rather than “cheapest 2 storey house to build”. Make sure quotes are detailed about your needs and preferences.

4. Apply for the First Home Buyers Grant in Australia

If it’s your first time buying or building a home, you might be eligible for some assistance from the government. Wondering how much you can get? Well, you can get a one-off grant of $10,000 provided you fulfil the eligibility requirements. Select the state or territory where you are planning to buy/build your house on this website to figure out if you are entitled to the First Home Buyers Grant in Australia. 

Conclusion

Building two storey house gives you extra space on the same size of land. The median price of constructing these houses ranges from $ 350,000 to $ 900,000, depending on the region. The maximisation of space is enhanced here by helping to increase the vertical dimension, thus reducing the cost of foundations, roofs and some plumbing as compared with a wider single-storey house.

So, are you ready to build your 2 storey house in Perth? Get in touch with the top boutique home builders Perth for a consultation! We will understand your project and give you the most competitive price quotes! Contact us today! Ready to Build? Get a Free Custom Quote Today!