What our analysis shows
Our calculations, data as of 23 October 2026
- A standard 60 m² two-bedroom flat on a flat block costs from $187,000 in Adelaide to $237,600 in Canberra, turnkey; Sydney is $220,000.
- Finishes move the price more than anything else on the same 60 m² flat, $87,000 from budget to premium. A steep block adds $33,000, while choosing a full application over the fast-track route adds only $7,500.
- Shrinking the flat saves less than people expect. Going from 60 to 40 m² removes a third of the floor area but only 24% of the cost, because the kitchen, bathroom and connections stay the same. Per m², a 40 m² flat costs $4,180 against $3,670.
- A factory-built module came out within $2,400 of a site-built flat in our model once transport and the crane were paid.
- Rent covers the build fastest on the Gold Coast (8.4 years after tax) and slowest in Wyndham (15.2 years), using government bond data for 2-bedroom rents.
Turnkey cost of a 60 m² two-bedroom flat by state, cheapest first
- South Australia$187,000
- Tasmania$192,900
- Western Australia$198,300
- Queensland$198,500
- Victoria$198,800
- New South Wales$220,000
- Australian Capital Territory$237,600
Standard finish, flat block, services within 12 m, fast-track approval, metro build rates, incl. GST.
What moves the price most
We changed one thing at a time on a Sydney reference flat ($220,000) and measured the effect. The list is in order of how much each choice moves the final number.
| Change from the reference flat | Effect on the total |
|---|---|
| Premium instead of budget finish | +$87,000 |
| Owner-builder kit instead of a builder | −$68,400 |
| 80 m² instead of 60 m² | +$60,000 |
| 40 m² instead of 60 m² | −$52,800 |
| Steep block instead of a flat one | +$33,000 |
| Regional NSW instead of Sydney | −$32,400 |
| Sewer 40 m away instead of 12 m | +$9,800 |
| DA instead of a CDC | +$7,500 |
| Prefab module instead of site-built | −$2,400 |
Two of these are in your hands before you call a builder: the finish level and the floor area. The block and the distance to the sewer are fixed by the site, which is why two neighbours can get quotes $40,000 apart for the same plan. Our guide to site costs and connections breaks those down.
Cost by state and size
The same model at three sizes. A 40 m² flat is usually a studio or one bedroom, 60 m² fits two bedrooms, and 80 m² has been allowed in Victoria's planning rules since Amendment VC306 on 15 October 2026, and in Brisbane and on the Gold Coast.
| State | 40 m² | 60 m² | 80 m² | 60 m², regional |
|---|---|---|---|---|
| New South Wales | $167,200 | $220,000 | $280,000 | $187,600 |
| Victoria | $150,800 | $198,800 | $253,400 | $169,300 |
| Queensland | $151,000 | $198,500 | $252,500 | $169,300 |
| Western Australia | $150,300 | $198,300 | $252,900 | $168,800 |
| South Australia | $142,100 | $187,000 | $238,000 | $159,500 |
| Tasmania | $146,400 | $192,900 | $245,700 | $164,400 |
| Australian Capital Territory | $178,500 | $237,600 | $304,800 | – |
Size caps differ: NSW allows 60 m² (more only where the council's LEP says so), South Australia and Western Australia 70 m², the ACT 90 m². An 80 m² flat in NSW needs a development application under a council control that allows it. See the rules in each state.
How each line is worked out
Construction. A rate per m² for each finish level ($2,450, $3,000 and $3,900 in Sydney), adjusted for the state, for regional centres (18% lower; remote areas cost more, not less) and for small flats, where the premium rises to 12% at 30 m².
Site preparation. Excavation, levelling and the slab base: $12,000 on a flat block, $25,000 with some slope or tight access, $45,000 with rock or retaining walls.
Connections. Sewer, water, power and stormwater run from the main house: $10,000 when the flat is within 12 m, plus $350 for each extra metre of trench.
Design and approval. Drawings, engineering and the energy report ($8,000), then the state's approval route. Council contributions are added where they apply, such as section 7.11 charges in NSW.
What is not included: demolition of an old shed or garage, removing large trees, bushfire-rated construction (BAL-29 and above) and furniture. The methodology page lists every input and where it comes from. We price the six states and the ACT; the Northern Territory is not covered yet.
Before you price your own
Check that your block qualifies for the fast-track route: in NSW the lot must be at least 450 m², in Victoria 300 m², and bushfire, flood or heritage controls can push any state into a full application. Allow three to four months on site for a builder (days for a factory module, after it is made) plus approval time. Insist on the builder's statutory home warranty insurance certificate before paying a deposit; it is required above $20,000 of work in NSW and $16,000 in Victoria. The rules checker tests your lot in a minute.
What it can earn
We matched each build cost to the median rent for new bonds in the same area. On a 60 m² two-bedroom flat, these areas returned the build cost fastest:
| Area | Build cost | 2-bed rent / week | Net yield | Payback |
|---|---|---|---|---|
| Gold Coast (QLD) | $198,500 | $750 | 16.2% | 8.4 yrs |
| Cairns (QLD) | $169,300 | $600 | 15.0% | 9.0 yrs |
| City of Melbourne (VIC) | $198,800 | $678 | 14.5% | 9.3 yrs |
| Newcastle (NSW) | $187,600 | $640 | 14.4% | 9.3 yrs |
| Eastern Adelaide (SA) | $187,000 | $628 | 14.2% | 9.5 yrs |
This week's worked example
Week of 19 October 2026. A new example, rule and owner report every Monday.
A 70 m² two-bedroom flat with a standard finish on a block with some slope, services 20 m from the house, in Townsville: our model puts it at $207,300 turnkey ($182,500–$232,000), or $2,960 per m². At the area's median 2-bedroom bond rent of $520 a week it would return 10.3% net and pay back in 12.7 years after tax.
Rule check: A habitable slab must be at least 150 mm above the adjacent ground with a damp-proof membrane underneath, one of the first things a BCA report on a garage conversion checks.
From an owner (VIC, 2021): A design for a self-contained unit failed the building code because it used the kitchen sink as the laundry tub: the code requires a kitchen sink, a laundry tub and a basin as separate fixtures.
Payback is after agent fees, insurance, maintenance and tax at 30%, with no loan. Run your own numbers in the rental yield calculator, or see rents in all 42 areas.