If you’re looking for ways to increase the floor space of your new or existing home, building a basement is one option you may consider. Builders here are also reporting an increase in basement builds over the last few years too.

Building a basement has plenty of upside – a larger house, better lifestyle and increased property value to name a few – but it can also require a significant investment. Every block and project is unique and deciding if it’s a viable option for you requires plenty of research. So, to help you get started, we’re sharing some tips on the cost of building a basement in Melbourne.

Important Factors That Impact the Cost

A good starting point is to understand the main factors that will impact the cost of your project, which includes site conditions, construction requirements and design features. For example, site factors such as the type of soil, access to site and volume of earthworks required will determine the cost of the excavating and earthmoving component. The size and depth of the basement, location of retaining walls, drainage systems, ventilation and lighting requirements impact construction costs. And when it comes to design, the internal fit out you choose obviously varies the cost significantly – if you are building a basic garage compared to a wine cellar, gym or home theatre for instance.

Does it Cost More Than Building on Ground Level or Up?

Due to the above factors, the additional challenges of water ingress, waterproofing, and dealing with ground and stormwater effectively, and the level of expertise required to successfully complete the project, the cost of building a basement is generally higher than building at ground level or up. Just like a regular build, the cost can vary significant depending on the site and project requirements, but estimates range from 50-100% more per square metre than building above ground. In other words, for something like a basement garage for two to three cars, you could be looking at adding $100,000-$200,000 to the cost of your build.

Today, most basements in Melbourne are built in luxury homes in affluent suburbs, however, if the trend catches on here, we’re likely to see it happening more.