How Much Does a Typical Home Renovation Cost in Australia?

Key Takeaways: 

• Home renovation costs in Australia range from $50,000-$300,000 for full renovations 

• Kitchen renovations typically cost $25,000-$50,000 depending on scope and materials 

• Bathroom renovations range from $15,000-$35,000 for most Australian homes 

• Renovation costs have risen 15-25% above previous years due to supply chain issues 

• Always include a 10-15% contingency fund for unexpected expenses

Renovating your home can feel like navigating a financial minefield. You scroll through countless Pinterest boards, watch renovation shows that make it look effortless, and wonder why your quotes seem so much higher than what you expected. The reality is, most Australian homeowners drastically underestimate renovation costs, leaving them stressed, over-budget, and sometimes forced to abandon their dream project halfway through.

This financial uncertainty stems from a lack of transparent, current pricing information. With supply chain disruptions, skilled labour shortages, and inflation hitting the construction industry hard, 2025 renovation costs bear little resemblance to pre-pandemic pricing. Many homeowners rely on outdated information or generic online calculators that don’t reflect Australian market realities.

Understanding actual renovation costs empowers you to make informed decisions about your property investment. This comprehensive guide reveals current Australian renovation pricing, helping you budget confidently and avoid costly surprises. Whether you’re planning a kitchen refresh or complete home transformation, you’ll discover the real costs and smart strategies to maximise your investment.

Understanding Australian Renovation Costs in 2025

The typical home renovation cost in Australia varies dramatically based on your project scope, location, and material choices. Full home renovations range from $50,000 to $300,000, while targeted room updates can cost between $15,000 to $50,000 per space.

According to PropertyChat.ai, renovation costs have been rising due to supply chain issues and increased trade costs, sometimes up to 25% higher than previous years. This significant increase means that budgets based on 2022 pricing will likely fall short of current market realities.

Location plays a crucial role in pricing variations:

• Sydney and Melbourne renovations command premium pricing, often 15-20% above national averages
• Brisbane and Perth follow closely, with mid-range pricing structures
• Regional areas typically offer more affordable options but may face material transport challenges

The quality of materials you choose will significantly impact your budget. Basic renovations using standard fixtures and finishes start around $2,000-$3,000 per square metre, while premium materials and custom work can push costs to $4,000-$7,000 per square metre.

Kitchen Renovation Costs: The Heart of Your Home

Kitchen renovations represent one of the most popular and valuable home improvements for Australian homeowners. The kitchen renovation cost in Australia typically ranges from $25,000 to $50,000 for a standard-sized kitchen, though costs can extend well beyond this range depending on your choices.

Budget Kitchen Renovations ($15,000-$25,000)

Budget-friendly kitchen updates focus on cosmetic improvements without major structural changes. This includes:

• Cabinet door replacement or painting
• New countertops (laminate or entry-level stone)
• Updated hardware and fixtures
• Fresh paint and basic lighting updates

While materials are more basic, smart planning can still deliver impressive results.

Mid-Range Kitchen Renovations ($25,000-$40,000)

Most Australian homeowners find their sweet spot in this range. Mid-range kitchen renovations include:

• New cabinetry with quality finishes
• Stone benchtops (quartz or standard granite)
• Quality appliances from reputable brands
• Improved lighting systems and splashbacks
• Limited structural modifications

This level provides excellent value while creating significant visual impact.

Luxury Kitchen Renovations ($40,000+)

High-end kitchens feature:

• Custom cabinetry with premium finishes
• Premium stone surfaces or speciality materials
• Top-tier appliances with advanced features
• Sophisticated lighting and technology systems
• Structural changes, butler’s pantries, or island additions

These projects often include structural changes, butler’s pantries, or island additions that require additional plumbing and electrical work.

The kitchen represents your home’s central hub, making it a worthwhile investment. Quality renovations typically recoup 70-80% of their cost in added property value, making them both lifestyle and financial improvements.

Bathroom Renovation Costs: Creating Your Personal Sanctuary

Bathroom renovation costs in Australia generally range from $15,000 to $35,000 for a standard bathroom, though luxury renovations can exceed $50,000. The final cost depends heavily on the scope of work and quality of finishes chosen.

Standard Bathroom Updates ($10,000-$20,000)

Basic bathroom renovations focus on surface-level improvements without relocating fixtures. This includes:

• New tiles for wet areas
• Updated vanity and mirror
• New tapware and shower fixtures
• Fresh paint and basic lighting

While keeping the existing layout controls costs, you can still achieve a fresh, modern look.

Complete Bathroom Renovations ($20,000-$35,000)

Full bathroom renovations typically involve:

• Relocating fixtures and updating plumbing
• New tiling throughout all surfaces
• Custom vanity or storage solutions
• Premium fixtures and fittings
• Improved lighting and ventilation
• Comfort features like heated towel rails

This level allows for layout improvements and the inclusion of features like rainfall showers or freestanding tubs.

Luxury Bathroom Renovations ($35,000+)

Premium bathroom projects feature:

• High-end materials (marble, natural stone)
• Custom vanities with designer basins
• Heated floors and smart technology
• Spa-like amenities (steam showers, jetted tubs)
• Custom lighting schemes
• Accessibility features or ageing-in-place considerations

These renovations often require structural work and premium finishes that justify the higher investment.

Bathrooms offer excellent return on investment, particularly in homes where the existing bathroom feels dated or cramped. Well-executed bathroom renovations typically recoup 60-70% of their cost while significantly improving daily comfort.

Factors Influencing Australian Renovation Costs

Several key factors determine your final renovation cost, and understanding these helps create realistic budgets and avoid surprises.

Property Age and Condition

Older Australian homes often require additional work including:

• Electrical upgrades to meet current code requirements
• Plumbing modifications and infrastructure updates
• Potential asbestos remediation in pre-1990s homes
• Structural reinforcements and foundation work

Homes built before 1990 frequently need significant infrastructure updates that can add $10,000-$30,000 to renovation budgets.

Scope of Structural Changes

Moving walls, relocating plumbing, or adding new spaces requires:

• Engineering consultation and formal plans
• Council approvals and permits
• Specialist trades coordination
• Temporary support structures

Each structural modification typically adds 15-30% to renovation costs compared to cosmetic updates.

Material and Finish Selection

The materials you choose dramatically impact total costs:

• Benchtops: Laminate ($300/linear metre) vs premium stone ($1,500+/linear metre)
• Flooring: Vinyl ($40/m²) vs engineered timber ($120+/m²)
• Tiles: Ceramic ($50/m²) vs natural stone ($200+/m²)
• Cabinetry: Standard vs custom joinery (2-3x cost difference)

These selections can easily double or triple your overall budget depending on your choices.

Location and Access Challenges

Your property’s location affects renovation costs in several ways:

• Inner-city properties with difficult access can increase labour costs by 10-20%
• Regional properties might face material transport costs but typically benefit from lower labour rates
• Apartment renovations often include additional fees for building management and waste removal
• Heritage-listed properties involve extra compliance and speciality work

Permit and Approval Requirements

Significant renovations require council approvals, which vary by location and project scope:

• Building permits typically cost $1,500-$5,000
• Major renovations might require additional engineering reports and consultant fees
• Heritage overlays or environmental protections may necessitate speciality reports
• Delays in approvals can impact overall project timeline and costs

Smart Budgeting Strategies for Australian Renovations

Successful renovation budgeting requires careful planning and realistic expectations. The location and the quality of materials you choose will significantly impact your budget, as PropertyChat.ai expertise confirms.

Include Contingency Funds

Keep in mind that renovation costs have been rising due to supply chain issues and increased trade costs, sometimes up to 25% higher than previous years. Always include a contingency of around 10-15% for unexpected expenses—that’s a must-have in any renovation budget, according to PropertyChat.ai wisdom.

Prioritise High-Impact Areas

Focus your budget on areas that deliver the greatest lifestyle and financial returns:

• Kitchens and bathrooms typically offer the best value
• Street appeal improvements often provide strong returns
• Living areas and bedrooms provide good returns at lower investment levels
• Outdoor living spaces are increasingly valuable in the Australian market

Obtain Multiple Detailed Quotes

Get at least three written quotes for comparison, ensuring each covers identical work scope. This helps:

• Identify fair pricing in your local market
• Reveal any significant variations in approach or inclusions
• Understand different timeframes and methodologies
• Assess communication styles and professionalism

Consider Renovation Staging

If budget constraints exist, consider completing renovations in stages:

• Start with high-impact areas like kitchens or main bathrooms
• Address critical infrastructure before cosmetic improvements
• Plan for logical progression to minimise rework
• Create a comprehensive long-term plan with defined stages

What Kind of Renovation Are You Thinking About?

If you want a more tailored estimate, it helps to define exactly what you want to achieve and get multiple quotes from tradespeople. Remember to include a contingency of around 10-15% for unexpected expenses—that’s a must-have in any renovation budget.

The experts at PropertyChat.ai can help you break down the costs more specifically based on your unique situation. With over 20 years of solid investing, mortgages and renovation advice, PropertyChat.ai provides proven frameworks without current market data or financial advice.

Whether you’re planning a simple refresh or complete home transformation, understanding current Australian renovation costs empowers better decision-making. Focus on realistic budgeting, quality tradespeople, and materials that balance cost with long-term value.

Remember, successful renovations aren’t just about the lowest price—they’re about achieving your vision while protecting your investment. Take time to plan thoroughly, budget realistically, and choose professionals who understand Australian building standards and local market conditions.

Navigating the costs of home renovations in Australia requires thorough research and realistic planning. By understanding the typical costs outlined in this guide, you’ll be better positioned to budget appropriately and avoid the financial stress that comes with underestimated projects.

Remember that location, property age, material selections, and structural changes all significantly impact your final costs. Creating a comprehensive plan with professional guidance and including an adequate contingency fund will help ensure your renovation journey is successful both financially and in achieving your desired outcome.

For more personalised advice on your specific renovation needs, connect with PropertyChat.ai’s expert resources to access decades of Australian property renovation experience.

Suggested Related Articles

• Is It Better to Renovate or Buy Updated Property? The Smart Investor’s Guide
• The Strategic Renovator’s Guide: Maximizing Property Value
• How to Budget for a Renovation Without Blowing Costs
• The Best Ways to Finance a Renovation: A Strategic Guide

Ready to renovate with confidence?
Start your journey with the proven frameworks and expert support at Your Property Success and PropertyChat.ai.

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Transcript

Australian Home Renovation Costs Skyrocket: The 2025 Truth Revealed

0:00So, if you’re a property investor, you

0:02know there’s that one big question that

0:04can really keep you up at night, right?

0:06How much is this Renault actually going

0:08to cost me? Well, in this explainer,

0:11we’re going to cut right through all the

0:12noise. We’ll give you the real hard

0:14numbers for 2025 so you can plan your

0:16next project with, you know, total

0:18confidence. All right, let’s dive in. I

0:21mean, we’ve all been there, haven’t we?

0:23You’re scrolling through Pinterest or

0:25Instagram, saving all these incredible

0:27ideas, picturing this amazing

0:29transformation for your investment

0:30property, and then the quotes start

0:32rolling in, and bam, reality hits you

0:35like a ton of bricks. So, why is there

0:38such a massive, massive disconnect?

0:41Yeah, this quote just absolutely nails

0:43it. It’s not just a feeling you have. It

0:45is a common, super stressful reality for

0:48so many investors. But here’s the good

0:50news. Just understanding what’s going on

0:52in the market right now is your first

0:54and most important step to avoiding that

0:55whole nightmare scenario. Okay, so

0:58here’s our game plan. We’re going to

0:59look at the renovation cost shock, then

1:01Australia’s current price tag. We’ll

1:03break down the high-v value rooms, talk

1:05about managing your budget, and then

1:07cover your next step. Simple as that.

1:09All right, first up, the renovation cost

1:12shock, and seriously, why your old

1:14budget is now dangerously outdated. If

1:16you’re using numbers from even just a

1:18few years ago, you are setting yourself

1:20up for a really nasty surprise. The

1:22whole game has completely changed. Look,

1:25the bottom line is this. 2025 renovation

1:28costs, they bear almost no resemblance

1:31to what we saw pre- pandemic. The entire

1:33financial landscape is different now.

1:35You know, we’re talking major supply

1:36chain chaos, serious labor shortages,

1:39and of course, inflation. So, that old

1:42advice, those old prices, they’re not

1:44just outdated. They are actually

1:46dangerous for your bottom line. Okay,

1:48let’s get into Australia’s renovation

1:51price tag. These are the big numbers you

1:53absolutely need to know. This is what

1:55everyone’s waiting for, right? What

1:57should you really expect to budget for a

1:59full home rena in Australia today? So,

2:02let’s start at the let’s call it the

2:04baseline for a pretty straightforward

2:07cosmetic job on a smaller property.

2:10think, you know, budget friendly

2:11materials, no knocking down walls or

2:13anything crazy, your starting point is

2:16probably going to be around $50,000.

2:19But what about the other end of the

2:20spectrum? Well, if you’re talking about

2:22a larger house, premium finishes, maybe

2:25taking out a few walls, that number can

2:28just skyrocket past $300,000.

2:31And that that right there is the real

2:33challenge, isn’t it? Trying to plan for

2:35such an absolutely massive range. So,

2:38why the huge sticker shock? Well, across

2:41the board, costs have jumped by a

2:43staggering 15 to 25% compared to just a

2:45few years back. And listen, this isn’t

2:47just one supplier getting greedy. No,

2:50this is a fundamental shift in the

2:51market that every single investor now

2:53has to bake into their budget. All

2:55right, so now we’ve got the big picture

2:57numbers, but as an investor, you know

3:00that not all rooms are created equal.

3:02So, let’s zoom in on where your

3:04investment delivers the best ROI. We’re

3:07talking about the two areas that give

3:08you the biggest bang for your buck, the

3:10kitchen and the bathroom. Okay, let’s

3:13talk kitchens. What you’re seeing here

3:15really lays out your options. On a

3:17budget, say 15 to 25K, you’re looking at

3:19high impact cosmetic stuff, painting

3:21cabinet doors, laminate benchtops. The

3:24mid-range, which is really the sweet

3:25spot for most investors, at 25 to 40K,

3:28gets you brand new cabinetry, nice stone

3:30benchtops, and quality appliances. And

3:32then, of course, you’ve got luxury. 40

3:34grand and up. That’s where you get into

3:35custom joinery and maybe even moving

3:37things around. And here is the payoff.

3:41This is why you do it. A good kitchen

3:44Reno is such a powerful financial move

3:46because you can expect to get back 70 to

3:4980% of what you spend in added property

3:52value. I mean, from an investment point

3:54of view, that is an absolutely

3:55incredible return. All right, on to the

3:58second heavy hitter, the bathroom. The

4:00logic is pretty much the same here. A

4:02standard update, maybe 10 to 20 grand is

4:03smart. You work with the layout you’ve

4:05got to keep costs low. A complete Reno,

4:07that’s going to be more in the 20 to

4:09$35,000 range. That gives you the

4:11freedom to move, plumbing, do a full

4:13retile, the whole shebang. And luxury,

4:15well, that’s 35K plus for things like

4:17marble and heated floors. And what about

4:20the return on a bathroom? Also really,

4:23really good. A well done bathroom rena,

4:25especially if you’re transforming a

4:27really dated space, will usually add 60

4:29to 70% of its cost right back into your

4:31property’s value. It’s just another one

4:33of those powerful levers you can pull as

4:35an investor to boost your equity. Okay,

4:38so we’ve got a handle on the costs. Now

4:40for maybe the most important part,

4:41managing your renovation budget. How do

4:44you actually take control of all these

4:45costs? Well, it all comes down to

4:47knowing exactly where the money goes and

4:48having a solid plan. So, these right

4:51here are the classic budget killers you

4:53have got to watch out for. First, the

4:56age of the property. Older homes can

4:58hide some nasty, expensive surprises.

5:00Then, structural changes. They always

5:02add a hefty chunk to the bill. Your

5:05location matters a lot. Sydney and

5:07Melbourne are going to be pricier.

5:08Permits and approvals, they can add up

5:10fast, but the single biggest variable,

5:13the one you have the most control over,

5:14it’s the materials you pick. And let’s

5:17make that real for a second. Just look

5:19at benchtops. A basic laminate might run

5:21you about 300 bucks per linear meter. A

5:24premium stone, you’re looking at over

5:26$1,500.

5:28That one decision stretched across an

5:30entire kitchen can literally swing your

5:32budget by tens of thousands of dollars.

5:35It’s huge.

5:37So, how do you stay in control of all

5:38this? You need a system. Here are four

5:41steps to a smarter budget. Think of

5:44these as your non-negotiables. Number

5:46one, build a 10 to 15% contingency fund

5:49always. I mean it. No exceptions. Two,

5:52prioritize. Put your money where it

5:54counts, in those high impact areas like

5:57kitchens and bathrooms. Three, get at

5:59least three detailed written quotes. You

6:02have to compare apples with apples. And

6:04four, consider staging the reno. If the

6:06budget is just too tight, do it in

6:08phases. All right, we’ve covered a ton

6:11of ground here from the cost shock to

6:13the actual numbers and how to manage

6:15them. So, let’s talk about your next

6:17step. How do we turn all this planning

6:19into a profitable investment? You know,

6:22if there’s one thing I really want you

6:24to take away from all this, it’s this.

6:27Successful renovating isn’t just about

6:28spending money. In fact, profit isn’t

6:31made by spending the most money. It’s

6:33made by having the smartest plan. It’s

6:35about knowing these numbers,

6:36understanding the market, and making

6:38really deliberate choices that create

6:40actual, measurable value. So, knowing

6:43these numbers, that’s your foundation.

6:45It’s absolutely crucial. But the next

6:48step is to build your own specific plan

6:50for your project. And that’s where a

6:52resource like property chat.ai can be a

6:55real gamecher. It’s packed with expert

6:57frameworks that are designed to help

6:58investors just like you turn all this

7:01data into a strategic and most

7:03importantly a profitable renovation

7:05plan. So if you’re ready to go from just

7:07understanding the costs to actually

7:09mastering them, that’s where you need to

7:11head next.

Frequently Asked Questions