Multi-Unit Construction Costs Melbourne: Budget Like a Pro

Right, let's talk money. Planning your multi-unit development budget can feel like trying to hit a moving target, especially with construction costs in Melbourne shifting more than the weather. But here's the thing – if you understand what drives costs and where the sneaky expenses hide, you can budget like a pro and avoid those nasty surprises that blow projects off course.

We've built dozens of duplexes, townhouses, and multi-unit developments around Melbourne, so we know exactly where the money goes. Let's break down the real costs – no sugar-coating, no hidden agenda. Just straight-talking advice to help you plan your multi-unit construction budget properly.

Multi-Unit Construction Costs Melbourne: The Current Reality

Construction costs in Melbourne for 2025 are sitting between $2,100 to $3,900 per square metre for quality builds, with townhouses averaging $400,000 to $700,000 per dwelling depending on size and finishes. But here's what most people don't realise – multi-unit construction often works out more cost-effective per square metre than single homes because you're sharing certain costs across multiple dwellings.

Current townhouse construction in Melbourne is running around $2,600-$2,800 per square metre, while duplex builds are typically costing $600,000-$1.2 million total for both units, depending on size and finish quality.

That's the headline figure, but the devil's in the details. Your actual costs will depend on a stack of factors, and understanding these upfront will save you from budget blowouts later.

What Drives Multi-Unit Construction Costs in Melbourne?

Block Conditions and Site Preparation

Your block is where everything starts, and it can make or break your budget. A flat, easy-access block with good soil? You're laughing. A sloping block with rock or poor drainage? That's when costs start climbing.

Site preparation can range from $20,000 for straightforward blocks to $80,000+ if you need significant excavation, retaining walls, or drainage work. Rocky ground that needs rock breaking can add $15,000-$30,000 to your budget before you've even started building.

Access matters too. If trucks can't get close to your site, you're looking at extra costs for smaller equipment and more labour hours.

Design Complexity and Finishes

This is where good taste is free really comes into play. Smart multi-unit design doesn't need to be complicated or expensive to look great. Clean lines, good proportions, and thoughtful material choices often work better than fancy architectural gymnastics.

Standard finishes (think quality laminate benchtops, ceramic tiles, basic but decent fixtures) will keep you at the lower end of the cost range. Premium finishes (stone benchtops, timber flooring, high-end appliances) can add $30,000-$60,000 per dwelling to your budget.

Council Requirements and Compliance

Melbourne councils have specific requirements that affect costs. Accessibility compliance, energy efficiency standards, stormwater management, and landscaping requirements all add to the bottom line.

Budget around $15,000-$25,000 per dwelling for compliance costs, inspections, and certification fees. This includes things like energy ratings, acoustic requirements, and fire safety measures.

Services and Infrastructure

Multi-unit developments need beefed-up services – more electrical capacity, bigger sewer connections, and often gas supply to multiple units.

Electrical upgrades can cost $8,000-$15,000 per dwelling. Plumbing and sewer connections typically run $12,000-$20,000 per unit, depending on how far you are from existing mains.

Don't forget about NBN, Foxtel, and security systems – these "nice-to-haves" quickly become "must-haves" for rental properties.

Hidden Costs That Catch People Out

Authority Fees and Connection Charges

Melbourne Water, electricity providers, and gas companies all want their cut, and these fees add up fast. Budget $8,000-$15,000 per dwelling for all the various connection fees and authority charges.

Subdivision fees, if you're creating separate titles, can add another $15,000-$25,000 to your budget. Survey costs, title registration, and legal fees all mount up.

Council Fees and Development Contributions

Beyond the basic planning and building permit fees, many Melbourne councils charge development contributions for infrastructure upgrades. These can range from $5,000-$20,000+ per dwelling depending on the council and project size.

Car parking requirements can be expensive if your block doesn't naturally accommodate the required spaces. Crossovers, driveways, and parking areas can easily cost $15,000-$25,000 per dwelling.

Temporary Costs During Construction

Temporary fencing, site toilets, skip bins, and security might seem like small change, but they add up over the 8-12 month construction period. Budget around $8,000-$12,000 for these items.

If you need to relocate during construction (common if you're demolishing an existing house), accommodation costs can blow out budgets. Factor in $2,000-$4,000 per month if this applies to you.

Professional Fees

Good multi-unit builders include most professional fees in their quotes, but some costs fall outside the building contract:

• Architect or draftsperson: $15,000-$35,000
• Structural engineer: $5,000-$12,000
• Building surveyor: $8,000-$15,000
• Landscaping design: $3,000-$8,000
• Interior designer (optional): $8,000-$20,000

Multi-Unit Construction Costs by Dwelling Type

Duplex Construction Melbourne

Duplexes in Melbourne typically cost $600,000-$1.2 million total for both units combined. For a standard duplex with two 3-bedroom townhouse-style dwellings, you're looking at:

• Budget duplex: $550,000-$700,000 total
• Mid-range duplex: $700,000-$950,000 total
• Premium duplex: $950,000-$1.3 million total

The sweet spot for most Melbourne blocks is the mid-range option – good quality finishes without going overboard, smart design that maximises space, and materials that look great but don't break the bank.

Townhouse Construction Melbourne

Townhouse developments typically cost $400,000-$700,000 per dwelling. For a 2-3 townhouse development:

• 2-bedroom townhouses: $350,000-$500,000 each
• 3-bedroom townhouses: $450,000-$650,000 each
• 4-bedroom townhouses: $550,000-$750,000 each

Townhouses often deliver better value per square metre than duplexes because you're building vertically rather than horizontally, making better use of expensive Melbourne land.

Multi-Unit Developments (4+ Units)

Larger multi-unit developments benefit from economies of scale, but they also come with extra complexity. For 4-6 unit developments:

• 1-bedroom units: $280,000-$420,000 each
• 2-bedroom units: $350,000-$550,000 each
• 3-bedroom units: $450,000-$650,000 each

Add 10-15% to these figures for common areas, shared facilities, and extra compliance requirements.

Budgeting Smart: Construction vs Total Development Cost

The construction cost is just one part of your total development budget. Here's how a typical duplex development breaks down:

Land Acquisition

• Suitable development sites in Melbourne: $600,000-$1.2 million+
• Demolition of existing house: $15,000-$35,000

Professional and Planning Costs

• Planning permits and consultants: $25,000-$50,000
• Architectural drawings: $20,000-$40,000
• Engineering and surveys: $8,000-$15,000

Construction Costs

• Building costs: $600,000-$1.2 million (as above)
• Landscaping: $25,000-$50,000
• Driveways and fencing: $15,000-$30,000

Holding and Finance Costs

• Construction finance: 7-9% per annum
• Council rates and insurance: $5,000-$8,000
• Legal and accounting: $8,000-$15,000

Sales and Marketing (if selling)

• Real estate agent fees: 2-2.5% of sale price
• Marketing and styling: $15,000-$30,000

Total project cost for a mid-range duplex: $1.4-$1.8 millionExpected sale value: $1.6-$2.2 million (market dependent)

Finding the Right Multi-Unit Builder for Your Budget

Not all builders are created equal, and multi-unit construction requires specific experience and systems. Here's what to look for:

Fixed-Price Contracts vs Cost-Plus

Most Melbourne multi-unit builders work on fixed-price contracts, which gives you budget certainty. Cost-plus contracts can work for complex sites or custom designs, but they require careful project management to avoid cost blowouts.

Make sure your contract clearly defines what's included and what's extra. Good taste is free, but changes and variations definitely aren't.

Track Record with Multi-Unit Projects

Multi-unit construction is more complex than single homes. Look for builders who've completed similar projects in your area and can show you finished developments.

At Infinity Built, we specialise in multi-unit developments around Melbourne. We understand council requirements, know how to manage shared services and strata compliance, and can guide you through the whole process from concept to completion.

Transparency with Costs

The best multi-unit builders are upfront about costs with "no hidden costs, all fees explained and most included in the contract". If a builder can't give you a detailed cost breakdown, that's a red flag.

Local Knowledge

Melbourne building costs vary significantly between councils and suburbs. A builder who knows your local area will understand soil conditions, council quirks, and tradespeople availability – all factors that affect costs.

Cost-Saving Strategies for Multi-Unit Developments

Smart Design Choices

Rectangular floor plans are cheaper to build than complex shapes. Standard ceiling heights (2.7m) cost less than high ceilings. Shared walls and services reduce costs per dwelling.

Good architectural design doesn't have to be expensive. Simple, well-proportioned buildings with quality materials often look better and cost less than complicated designs with cheap finishes.

Material Selections

You don't need to go premium on everything. Spend money where it counts – benchtops, flooring, and fixtures that people see and use daily. Save money on things like roof materials and structural elements that don't affect livability.

Bulk purchasing across multiple units can save 10-15% on materials like tiles, fixtures, and fittings.

Timing and Scheduling

Construction costs vary throughout the year. Building in quieter periods (winter months) can sometimes secure better pricing from trades and suppliers.

Fast construction reduces holding costs. A builder who can complete your project in 8 months rather than 12 saves you thousands in finance charges and carrying costs.

Finance and Final Thoughts

Construction finance for multi-unit developments typically requires 20-30% equity, with banks lending 70-80% of project costs. Interest rates run 1-2% higher than standard home loans, with progressive payments during construction.

Multi-unit construction in Melbourne offers great opportunities, but only with proper budgeting from the start. Every site is different, every council has its quirks, and every project brings unique challenges.

Good taste is free, but good advice is invaluable. Don't try to wing it with multi-unit budgeting – work with experienced multi-unit builders who can provide realistic cost estimates based on your specific block and goals.

Ready to Budget Your Multi-Unit Development?

Multi-unit construction costs in Melbourne don't have to be a mystery. With proper planning, realistic budgeting, and the right team, you can create a development that delivers both quality homes and solid returns.

Every project is different, and costs can vary significantly based on site conditions, design choices, and finish levels. That's why we always recommend getting detailed cost estimates for your specific project rather than relying on broad averages.

Want to know what your multi-unit development will actually cost? Give us a call. We'll assess your site, understand your goals, and provide a detailed cost breakdown that covers all the bits other builders forget to mention. No surprises, no hidden costs – just honest pricing from Melbourne multi-unit builders who know what they're doing.

Ready for a realistic multi-unit construction cost estimate? Contact Infinity Built today. We'll give you straight answers about what your Melbourne multi-unit development will actually cost to build – no hidden fees, no nasty surprises.