How Much Will My Renovation Cost?

Planning a home renovation in Melbourne can be an exciting step toward improving your lifestyle and boosting property value. Whether you’re dreaming of a sleek new kitchen, an open-plan living space, or a second-storey extension, one of the first and most important questions that comes up is: How much will my renovation cost?

The answer depends on many factors, from the type of renovation to your location, materials, and builder. In this guide, we’ll break down what drives renovation costs in Melbourne and give you tips to plan your budget effectively.

Average Renovation Costs in Melbourne (2025 Guide)

Every home is different, but here’s a general pricing guide to help set expectations for renovations across Melbourne:

These figures reflect 2025 pricing trends in Melbourne and surrounding suburbs. Actual costs vary based on property condition, access, scope, and selections.

What Factors Influence Renovation Costs?

Understanding what drives renovation pricing helps avoid surprises and plan smarter. Here’s what Melbourne homeowners need to consider:

1. Scope of Work

A basic cosmetic upgrade (new paint, cabinetry, flooring) will cost far less than a full-scale renovation involving layout changes, extensions, or structural modifications.

For example:

• A kitchen facelift might cost $25,000
• A second-storey addition could reach $400,000+

2. Type of Property

Is your home a modern townhouse in the suburbs or a heritage-listed cottage in Carlton or Fitzroy? Older homes may require:

• Structural reinforcement
• Asbestos removal
• Rewiring or replumbing

This adds cost and time to any renovation.

3. Access and Location

Inner-city Melbourne homes often come with tight site access, street parking restrictions, and council limitations. These factors can increase labour time and delivery costs.

Meanwhile, homes in outer suburbs (like Werribee, Cranbourne, or Dandenong) may allow easier site logistics, which can reduce costs.

4. Material Choices

Materials make a big difference in both cost and aesthetics. Consider:

• Standard vs custom cabinetry
• Laminate vs stone benchtops
• Imported vs local tiles
• Energy-efficient appliances

Quality finishes and sustainable options add long-term value, but they also increase upfront cost.

5. Labour and Builder Experience

Working with a licensed, reputable builder (like Coy’s Constructions) may come at a premium but it ensures:

• Compliance with Victorian Building Authority standards
• Transparent timelines and contracts
• Higher-quality craftsmanship

Cheaper contractors can lead to poor outcomes, costly fixes, or project delays.

 Typical Budget Ranges by Renovation Type

To help you frame your expectations, here are ballpark ranges for common residential renovation projects in Melbourne:

FAQs Melbourne Homeowners Are Searching

What’s the most expensive part of a home renovation?

Structural work, wet areas (like kitchens and bathrooms), and high-end finishes tend to be the most expensive. This is due to the complexity of plumbing, electrical, waterproofing, and custom joinery. Heritage renovations also require special care and materials, often pushing costs higher.

Do I need council permits in Victoria?

Yes,  most Melbourne renovations require permits if they involve:

• Structural changes
• External walls or rooflines
• Plumbing or electrical upgrades
• Extensions or second’storey builds

You usually don’t need permits for minor cosmetic upgrades like:

• Painting
• New floor coverings
• Kitchen cabinet replacements (without moving plumbing)

Check with your local council or ask your builder to handle this as part of their service. At Coy’s Constructions, we manage all required permits on your behalf.

How can I avoid budget blowouts?

Here are three ways Melbourne homeowners can stay on budget:

1. Start with a detailed scope. Avoid vague plans. Get clear about layout, finishes, inclusions, and exclusions.
2. Get a fixed-price contract. Avoid open-ended quotes. A fixed-price contract gives you clarity and control.
3. Add a 15–20% contingency. Unforeseen issues (e.g., asbestos, structural rot) can emerge once work begins. A buffer protects you from stress and delays.

Renovation Cost Planning Tips

Before diving into a project, make sure you:

• Engage a builder early to discuss feasibility and realistic timelines
• Review your site conditions – drainage, zoning, access, soil, etc.
• Decide on non-negotiables (e.g. must-have finishes or layout features)
• Get itemised quotes – not just a lump sum
• Factor in GST, permits, and consultant fees (engineers, drafts people, surveyors)

Why Renovating in Melbourne Requires a Custom Estimate

Melbourne homes vary widely from modern duplexes to century-old terraces. No two renovations are alike. Factors like lot orientation, structure type, and even climate (Melbourne’s unpredictable weather!) affect both design decisions and construction timelines.

The best way to understand your renovation cost is to book a site assessment. At Coy’s Constructions, we provide clear, personalised quotes after a walk-through and consultation with you.

Working with Coy’s Constructions

We’re a trusted Melbourne builder known for:

• Clear project timelines
• Transparent, fixed pricing
• Collaborative, step-by-step planning
• High-quality finishes with minimal stress

Our goal is not just to complete your renovation but to make the experience smooth, honest, and rewarding.

Ready to Find Out What Your Renovation Will Cost?

Let’s talk. Contact Coy’s Constructions today to book a free consultation and get a tailored estimate for your Melbourne home renovation.