Cost guide, 2026

How much does a home extension cost in Canberra?

What decides the price of a ground floor or second storey extension, and the extras that catch people out. Written by the Construction Xperts team, last checked 26 October 2026.

Short answerUpdated

The biggest factors are how big it is, whether it has a kitchen or bathroom, and whether you build out or up. Wet areas add plumbing and electrics, and a second storey adds structure, stairs and a new roof. The join to the existing house and the site itself matter too. We look at your house for free and give you an itemised quote, with every allowance on its own line.

What moves the price

FactorWhy it matters
Out or upGoing up means engineering, new structure, stairs and roof work, roughly 50% more per m².
Kitchens and bathroomsPlumbing, waterproofing, tiling and joinery make wet areas the dearest rooms.
Matching the houseFinding bricks, roofing and windows to match can cost more than new materials.
AsbestosPre-1990 homes may need testing and licensed removal where the work disturbs it.
Site accessNo side or rear access slows deliveries and machinery.
Living in during worksStaging the job around your household can add time and protection costs.

Costs people forget to budget for

  • Structural engineering and the energy assessment
  • Building approval and certification
  • Asbestos testing and removal where the work disturbs it
  • Upgrading the switchboard, hot water or drainage for the new rooms
  • Somewhere to stay if you need to move out
  • Repainting or reflooring the rooms next to the extension so old and new match

Is it cheaper to build out or up?

Ground floorSecond storey
Cost per m²LowerAbout 50% higher
Keeps the backyardNoYes
Living at home during worksUsuallyOften not, for part of it
EngineeringFootings and tying into the roofThe existing structure gets checked first

Canberra specifics that affect your budget

Approvals

ACT or NSW changes the timeline

In the ACT most extensions need building approval, and bigger ones a DA as well. In NSW a compliant extension can go through a CDC, often within a few weeks. Approval time is money if you are paying rent elsewhere.

Source: NSW Planning, exempt and complying development

Energy

Upgrade while the walls are open

An extension is the cheapest time to add insulation, double glazing and a heat pump to the rest of the house. It adds to the quote but pays you back every winter.

How to get more extension for your money

  • Keep wet areas together, so the plumbing runs are short.
  • Reuse what works: existing walls, windows and services, where they suit the new layout.
  • Use standard window and door sizes instead of custom ones.
  • Lock in finishes before work starts, so you are not paying for changes.
  • Ask about a rebuild if the quote is creeping towards the cost of a new home.

Questions people ask about extension costs

What makes one extension cost more than another?

Wet areas, structure and the site. A simple living room costs less per square metre than one with a bathroom or kitchen, and a second storey costs more than building out. The site and design decide the final price, which is why we quote after seeing the house.

Is a second storey cheaper than building out?

Not per square metre. But it can be better value if building out would cost you most of the yard, or the block has no room to extend.

Do I need an engineer for an extension?

Almost always for structural work, and always for a second storey, to check the footings, beams and existing structure.

Can I save money by doing it in stages?

Sometimes. Planned properly, the first stage does not need undoing, but each stage has its own setup and approval costs.

Should I renovate or knock down and rebuild?

If you would change most of the house, get both priced. We do both, so we can lay them side by side for you.

A guide only. This is general information, not a quote or financial advice. Your price depends on your design, your site and what you choose.

Ready to price your extension?

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