Renovating your home

Renovation Cost in Australia (2026): Tables and Calculator

Renovation costs in Australia at September 2026: kitchens, bathrooms, laundries, extensions and rebuilds by finish level, per m² by state, and a calculator.

Andy McMaster

Reviewed by Andy McMaster, Editor

Written by Your Property Guide editorialUpdated 17 min read

How we keep this accurateSources

Key takeaways

  • Costs have not come back down. Master Builders Australia puts the cost of building a home at more than 50% above pre-pandemic (26 August 2026), and ABS house construction prices rose 5.9% in the year to June 2026. Expect $2,800–$4,500/m² for a mid-range full renovation in metro areas.
  • Kitchen renovations: $12K–$18K (budget refresh), $25K–$45K (mid-range), $60K+ (premium). Cabinetry and stone benchtops drive most of the cost. Archicentre Australia's Cost Guide 2026 puts a standard kitchen fit-out at $23K–$49K.
  • Bathroom renovations: $15K–$22K (standard), $25K–$40K (premium). Waterproofing and tiling labour drive cost. Archicentre's 2026 fit-out range is $17.5K–$35K.
  • Full house renovation: $200K–$500K for a mid-range three-bedroom. Second-storey addition: $250K–$450K. Knock-down rebuild: $400K–$900K plus demolition.
  • Builder margin sits at 15–25% on smaller jobs, 12–18% on larger ones. Add 10–15% contingency on top of every quoted price.
  • Pre-construction costs (architect, structural engineer, council, certifier, surveyor) typically run 8–15% of total project cost and are easy to forget when budgeting.

Renovating to sell rarely pays back: this guide puts a mid-range kitchen at 0.6× to 1.2× its cost recovered at sale, against 3× to 10× for a cosmetic refresh. If a sale is coming, spend where buyers will notice and budget the rest honestly.

Why these numbers, and how to use them

The ranges marked "this guide" are 2026 metro-Australia ranges from builder quotes on real jobs, including GST. Every table sets them beside dated published sources (Archicentre Australia, the CKA cost indicator, Rider Levett Bucknall, the ABS, Canstar, Three Birds Renovations and Houzz) and names the source in each cell. Where no source publishes a figure, the cell says so rather than guessing. Use them as a budgeting starting point. The actual quote for your project will vary with site access, structural condition, design complexity, and your finish choices.

Renovation costs at a glance

Every room at three finish levels, as at 30 September 2026. Where this guide has no figure for a finish level, the cell uses a dated published source and names it. Where nobody publishes one, it says "no published range". Each room section below sets this guide’s range beside every source that publishes one.

Renovation costs at a glance, metro Australia, 30 September 2026
Room or workBudget or cosmeticMid-rangePremium
Kitchen$12,000 to $18,000
this guide: flat-pack cabinetry, laminate benchtop, same layout
$25,000 to $45,000
this guide: custom or premium flat-pack cabinetry, stone benchtop
$60,000+
this guide: designer joinery, natural stone, full replan
Bathroom$8,000 to $15,000
Three Birds, Jan 2026: cosmetic refresh with budget materials
$15,000 to $22,000
this guide: in-place refresh, new tiles, vanity, waterproofing to AS 3740
$25,000 to $40,000+
this guide: premium tiles, frameless screen, possible layout change
Laundry
Archicentre publishes one laundry range for standard materials; the estimator uses it at every finish level.
no published range$10,000 to $19,000
Archicentre 2026: fit-out, standard materials, white goods extra
no published range
Living areas and flooring
Canstar publishes one living-room range; the estimator uses it at every finish level. Flooring and painting per square metre are in the laundry, living and bedrooms table.
$7,000 to $15,000+
Canstar, Jan 2025: paint, flooring, lighting and furniture
no published rangeno published range
Bedroom
Canstar publishes a basic per-room figure only; the estimator uses it at every finish level. Add a bathroom for an ensuite.
$1,000 to $2,000
Canstar, Jan 2025: paint, carpet and lighting, per room
no published rangeno published range
Canstar: up to $35,000 or more when a new ensuite is added
Ground-floor extension (per m²)
Shell and roof only. Add a kitchen or bathroom line for any wet area in the new space.
$2,510 to $3,760 /m²
CKA, Jun 2026, excl. GST: standard home shell under 300 m², Sydney base
$3,500 to $5,500 /m²
this guide: slab, walls, roof and services tie-in; fit-out extra
$5,000 to $5,990 /m²
CKA, Jun 2026, excl. GST: luxury home shell under 300 m², Sydney base
Second-storey addition (per m²)
No source publishes a second-storey rate by finish level; Archicentre lists first-floor additions as an extra over its extension rate. The estimator uses the mid-range figure at every finish level.
no published range$4,500 to $7,000 /m²
this guide: structural reinforcement, scaffold, roof lift
no published range
Knock-down rebuild: demolition$20,000 to $45,000
this guide: typical detached house at any finish level; more with asbestos or difficult access
Knock-down rebuild: new house (per m²)$1,800 to $2,800 /m²
this guide: volume builder project home
no published range
the ABS average for every new house built in 2024-25 is $1,967/m² (Landmark, Jul 2026)
$3,500 to $6,000 /m²
this guide: custom, architect-designed

As at 30 September 2026. "This guide" figures are metro Australia including GST. A cell reads "no published range" where neither this guide nor a dated published source gives a figure for that finish level; nothing is interpolated. CKA figures use Sydney prices as the base and exclude GST. The knock-down rebuild rows are demolition and new-build rates, not renovation rates.

Renovation cost calculator

Pick the rooms, the finish level and your state. The calculator adds the ranges from the table above, applies the CKA indicator’s capital-city adjustment (and its 5 to 15% regional premium if you tick regional), then adds this guide’s design and approvals (8 to 15%) and contingency (10 to 15%). It is an estimate built from the tables on this page, not a quote.

Your renovation

Rooms
Adding space (shell only; add rooms above for any new kitchen or bathroom)

Estimated cost

An estimate built from the tables on this page, as at 30 September 2026. Not a quote.

Kitchenthis guide, mid-range
$25,000 to $45,000
Bathroomthis guide, mid-range
$15,000 to $22,000
Metro subtotal, incl. GST
$40,000 to $67,000
Adjusted for Sydney (no adjustment)Sydney prices at the Sydney base in the CKA indicator (June 2026), so no adjustment.
$40,000 to $67,000
Budget to plan forAdds design and approvals 8 to 15% plus contingency 10 to 15%. Scope creep (3 to 7%) and somewhere to live during the build are extra.
$47,000 to $87,000

Renovation cost per square metre by scope

The rate per square metre depends first on scope: how much of the work is cosmetic, how much replaces services, and how much is structural. This guide’s three tiers sit against the three published sources that quote a rate for renovation work.

Renovation cost per square metre by scope, by source
SourceCosmeticMid-rangeStructural or premiumBasis
This guide$2,000 to $2,500 /m²$2,800 to $4,500 /m²$5,000 to $7,500+ /m²Metro Australia, incl. GST, 30 September 2026. Cosmetic: paint, flooring, tapware, lighting. Mid: plus kitchen, one bathroom, some replanning. Premium: architect-designed, structural, full re-stack of services.
Archicentre 2026no separate range$1,600 to $3,900 /m²$2,700 to $5,100 /m²Incl. GST, standard materials. Mid column: one range for all renovation inside an existing building in sound condition. Premium column: new construction and extensions, basic shell and roofline.
CKA, Jun 2026no separate range$2,510 to $3,760 /m²$3,340 to $4,630 /m² quality; $5,000 to $5,990 /m² luxurySydney price base, excl. GST and fees. Structural shell for a home under 300 m²: standard (brick veneer or timber), quality, luxury.
Canstar, Jan 2025no separate range$1,600 to $3,700 /m²no separate rangeOne range for a home renovation, attributed to Soho.

The published ranges sit below this guide’s at the bottom end because Archicentre and Canstar quote standard materials on a sound house and CKA quotes the shell without fees or GST; this guide’s ranges include the trades, fit-out and GST a metro quote carries. The ABS reports house construction output prices up 5.9% in the year to June 2026 (ABS PPI, Jun 2026), so a 2025 range needs that added.

Renovation cost by state and capital city

No published source gives a renovation rate per square metre for each state. What is published: the CKA indicator’s capital-city adjustments for renovation work, Rider Levett Bucknall’s rates for custom-built houses in each capital, the ABS average cost of new houses by state, and the ABS house construction price index by capital. The calculator uses the CKA adjustments.

House construction prices rose fastest in Hobart (11.5%), Perth (8.8%) and Adelaide (8.5%) in the year to June 2026, and slowest in Melbourne (3.7%), according to the ABS (31 July 2026). Demand is strongest in New South Wales: HIA expects renovation investment there to outpace Victoria by nearly 50% in 2026 (21 October 2025).

Renovation and building cost by state and capital city
StateCapitalRenovation cost against SydneyCustom-built house, per m²Average new house, per m², 2024-25House construction prices, year to Jun 2026
NSWSydney0% (base)$2,500 to $7,600 /m²$2,396 /m²+4.8%
VICMelbourne−1%$2,700 to $6,900 /m²$1,914 /m²+3.7%
QLDBrisbane+4%$3,150 to $5,800 /m²$1,987 /m²+8.0%
WAPerth+5%$3,100 to $5,100 /m²$1,585 /m²+8.8%
SAAdelaide0%$2,200 to $4,000 /m²$1,788 /m²+8.5%
TASHobart0%no published rangeno published figure+11.5%
ACTCanberrano published adjustment$2,150 to $4,200 /m²no published figurenot covered
NTDarwinno published adjustment$2,450 to $4,500 /m²no published figurenot covered
Regionaloutside a capital+5% to +15%no published rangeno published figurenot covered

Column sources: renovation cost against Sydney and the regional premium from the CKA, Jun 2026 (six capitals; none published for Canberra or Darwin); custom-built single and double storey house per m² of gross floor area from RLB Riders Digest 2026 (no Hobart column); average new house cost per m² for 2024-25 from ABS Building Activity as analysed by Landmark Valuations (Landmark, Jul 2026 (ABS); no Tasmania, ACT or NT figure); house construction output prices from ABS PPI, Jun 2026 (six capitals). The house-building columns are new-build rates, shown because they set the labour and materials prices a renovation pays. No source publishes a renovation cost per square metre by state; the state table on the co-architecture page that ranks for this query cites none.

Why costs rose, and where they are now

Renovation costs in Australia rose sharply between 2021 and 2024, driven by COVID-era supply chain disruption, materials inflation, and a building trades shortage that pushed labour rates up 25–40%. They have not come back down. ABS house construction output prices rose 2.0% in the June quarter 2026, the largest quarterly rise since September 2022, and 5.9% over the year (31 July 2026). Master Builders Australia puts the cost of building a home at more than 50% above pre-pandemic (26 August 2026). Don’t budget against pre-2021 numbers. The renovation market has reset.

What’s happened since:

  • Materials inflation has picked up again. Master Builders Australia reported building materials inflation at a three-year high on 2 September 2026, though the 2022–23 timber and steel shortages are behind us.
  • Labour remains the binding constraint. Construction trades shortages haven’t eased: apprenticeships dropped in the late 2010s and the pipeline is still thin. Expect 6 to 12 week waits to engage a quality builder for anything substantial.
  • Energy efficiency requirements from NCC 2022 (the 7-star housing standard) raise insulation, glazing and air-tightness requirements on new and substantially renovated work. They commenced between 1 October 2023 and 1 May 2025 depending on the state; Tasmania did not adopt them and the NT kept 5 stars (ABCB). NCC 2025 was released on 1 May 2026 and each state sets its own start date; New South Wales adopts it on 1 May 2027. This guide’s estimate of the real cost: 3–8% added to most renovation budgets, partially offset by lower energy bills.
  • Builder failures in 2023–24 (multiple high-profile insolvencies, especially in NSW and VIC) have driven up insurance costs and made owner-builders and small renovators more cautious. Always check builder solvency and home warranty insurance before signing.

Kitchen renovation costs

As at September 2026, a kitchen renovation in metro Australia costs $12,000 to $18,000 for a budget refresh, $25,000 to $45,000 mid-range and $60,000 or more premium; Archicentre Australia's Cost Guide 2026 puts a standard kitchen fit-out at $23,000 to $49,000 including GST and excluding white goods.

Kitchens are the most popular single-room renovation in Australia and the most variable on price. Three realistic tiers in 2026:

Budget kitchen: $12,000 to $18,000

  • Flat-pack cabinetry (kaboodle, IKEA, Bunnings-tier) in the existing layout.
  • Laminate benchtop.
  • Basic-tier appliances (cooktop, oven, rangehood, dishwasher).
  • Existing plumbing and electrical reused.
  • Labour for installation, basic tiling splashback, and minor electrical.

Mid-range kitchen: $25,000 to $45,000

  • Custom-built or premium flat-pack cabinetry (laminex, polytec, two-pack on doors).
  • 20mm or 40mm engineered stone or porcelain benchtop ($400–$900/m² installed).
  • Quality appliances (Bosch, AEG, Miele entry).
  • Possible minor layout change: moving the dishwasher, repositioning the rangehood.
  • New tiled splashback or premium glass.
  • Improved lighting (LED downlights, pendant over island).

Premium kitchen: $60,000+

  • Designer-spec custom cabinetry, often two-pack with handle-less drawers.
  • Premium benchtop: natural stone, sintered stone, or thick porcelain ($1,200–$2,500/m² installed).
  • Integrated high-end appliances (Miele, Gaggenau, Liebherr).
  • Full layout reconfiguration with new plumbing, electrical, gas.
  • Specialty joinery: butler’s pantry, integrated bins, charging stations.

How the published sources compare

The published kitchen ranges sit close to this guide’s mid-range. The CKA figures exclude GST, so add 10% before comparing.

Kitchen renovation cost by finish level: this guide against the published sources
SourceBudgetMid-rangePremiumBasis
this guide$12,000 to $18,000$25,000 to $45,000$60,000+metro Australia, incl. GST
Archicentre 2026no published range$23,000 to $49,000no published rangefit-out, standard materials, incl. GST, white goods extra
CKA, Jun 2026$14,360 to $19,760$22,200 to $35,600$32,690 to $50,900Sydney base, excl. GST; standard, quality, luxury
Canstar, Jan 2025no published range$20,000 to $50,000+no published rangeone range, labour the largest cost
Houzz AU, Jul 2023no published rangemedian $30,000no published rangemedian spend, renovations to March 2023
$25k–$45k
Mid-range kitchen renovation, 2026 metro Australia
Excluding any structural changes

What sneaks up on the budget

Three things consistently blow kitchen budgets: engineered stone choices (a $1,500 benchtop and a $4,500 benchtop look almost identical at quote stage and very different on the invoice), gas appliance changes that require new gas lines, and replacing the floor. Once you pull out the old kitchen, the existing floor often looks dated, and that’s another $3,000–$8,000 you weren’t counting on.

Bathroom renovation costs

As at September 2026, a bathroom renovation costs $15,000 to $22,000 for a standard in-place refresh and $25,000 to $40,000 or more premium in metro Australia, with Three Birds Renovations (January 2026) putting a budget cosmetic refresh at $8,000 to $15,000 and Archicentre Australia's Cost Guide 2026 a bathroom or ensuite fit-out at $17,500 to $35,000.

Bathrooms are smaller in scope but punch above their weight on cost because of waterproofing, tiling, plumbing and the dense regulatory environment around wet areas.

Standard bathroom: $15,000 to $22,000

  • In-place refresh, same fixture positions, no layout change.
  • New tiles (floor and partial walls).
  • New vanity, toilet, shower screen.
  • Quality but not premium tapware ($300–$700 per outlet).
  • Waterproofing redone to AS 3740.

Premium bathroom: $25,000 to $40,000+

  • Premium tiles, full-height wall tiling.
  • Frameless glass screen, freestanding bath, niche shelving.
  • Designer tapware (brushed brass, matte black, $700–$1,500 per outlet).
  • Possible layout change with new plumbing rough-in.
  • Underfloor heating, heated towel rail.
  • Custom vanity with stone top.

Tiling labour alone is $60–$120/m² for floors and walls, with materials on top. A bathroom with 25m² of tiling can absorb $1,500–$3,000 in tiling labour. Waterproofing is not the place to cut corners. It’s legally required, it’s the most common source of subsequent insurance claims, and remediation when it fails costs many multiples of doing it right the first time.

How the published sources compare

CKA prices an ensuite separately from a main bathroom; Archicentre gives one range for both. CKA figures exclude GST.

Bathroom renovation cost by finish level: this guide against the published sources
SourceBudgetMid-rangePremiumBasis
this guideno published range$15,000 to $22,000$25,000 to $40,000+metro Australia, incl. GST; standard and premium
Three Birds, Jan 2026$8,000 to $15,000$15,000 to $35,000$35,000+budget, standard, premium; average about $26,000
Archicentre 2026no published range$17,500 to $35,000no published rangebathroom or ensuite fit-out, standard materials, incl. GST
CKA, Jun 2026$13,360 to $22,810$20,640 to $32,150$32,000 to $50,360bathroom, Sydney base, excl. GST; standard, quality, luxury
CKA, Jun 2026$8,490 to $13,090$15,020 to $21,200$22,540 to $34,090ensuite, Sydney base, excl. GST; standard, quality, luxury
Canstar, Jan 2025no published range$15,000 to $30,000+no published rangeone range, tiles the largest cost
Houzz AU, Jul 2023no published rangemedian $19,000no published rangemain bathroom median spend, renovations to March 2023

Laundry, living areas and bedrooms

As at September 2026, a laundry fit-out costs $10,000 to $19,000 (Archicentre Australia Cost Guide 2026, standard materials), a living-area refresh $7,000 to $15,000 or more (Canstar, January 2025) and a basic bedroom refresh $1,000 to $2,000 per room (Canstar, January 2025).

These rooms are rarely renovated on their own. They are usually part of a wider refresh, so the published figures are mostly per room or per square metre of a single trade: painting, flooring, rewiring and re-plumbing. Use the per-square-metre rows to price a whole-house paint or floor.

Laundry, living areas, flooring and bedrooms: the published ranges
ItemPublished rangeSource and basis
Laundry fit-out, standard materials, incl. GST, white goods extra$10,000 to $19,000Archicentre 2026
Laundry, standard to luxury, Sydney base, excl. GST$6,000 to $22,680CKA, Jun 2026
Living room refresh: paint, flooring, lighting, furniture$7,000 to $15,000+Canstar, Jan 2025
Internal repainting, per room, excl. GST$1,320 to $1,810CKA, Jun 2026
Interior painting, one undercoat and two coats, per m²$20 to $40 /m²Archicentre 2026
Carpet, per m², plus underlay$45 to $165 /m²Archicentre 2026
Vinyl flooring, per m²$70 to $120 /m²Archicentre 2026
Timber floor polishing, per m²$75 to $120 /m²Archicentre 2026
Floor tiling, per m², for tiles costing up to $30 per m²$135 /m²Archicentre 2026
Bedroom, basic refresh (paint, carpet, lighting), per room$1,000 to $2,000Canstar, Jan 2025
Bedroom with a new ensuiteup to $35,000+Canstar, Jan 2025
Rewire a house, incl. GST$9,500 to $24,000Archicentre 2026
Rewiring, 150 to 240 m² house, excl. GST$8,770 to $13,200CKA, Jun 2026
Complete re-plumbing, 150 m² house, incl. GST$14,000 to $24,000Archicentre 2026
Re-plumbing, 150 to 240 m² house, excl. GST$11,400 to $22,600CKA, Jun 2026

Full house renovation

As at September 2026, a full renovation of a three-bedroom house in metro Australia costs $2,000/m² to $2,500/m² for cosmetic work, $2,800/m² to $4,500/m² mid-range and $5,000/m² to $7,500/m² or more premium, or $200,000 to $500,000 for a mid-range project; Archicentre Australia's Cost Guide 2026 puts renovation inside an existing building at $1,600/m² to $3,900/m².

For a standard three-bedroom house being renovated room-by-room or as a whole-house project, 2026 budgets break down as follows:

  • Cosmetic only (paint, flooring, tapware, lighting, minor): $2,000–$2,500/m². Total $80,000–$150,000 for a 50–60m² affected area.
  • Mid-range (cosmetic plus kitchen, one bathroom, some replanning): $2,800–$4,500/m². Total $200,000–$400,000.
  • Premium (architect-designed, structural work, full re-stack of services, designer finishes): $5,000–$7,500/m²+. Total $400,000–$800,000.

Regional work generally costs more, not less. The CKA indicator (June 2026) adds 5 to 15% outside the capital cities depending on distance, and Archicentre Australia’s Cost Guide 2026 notes that regional areas may attract a premium: land is cheaper in the regions, building is not. Among the capitals, CKA puts Perth 5% and Brisbane 4% above Sydney, Adelaide and Hobart level with it, and Melbourne 1% below. The state table has the detail.

Extensions and second storeys

As at September 2026, a ground-floor extension costs $3,500/m² to $5,500/m² and a second-storey addition $4,500/m² to $7,000/m² for the shell in metro Australia; Archicentre Australia's Cost Guide 2026 prices new construction and extensions at $2,700/m² to $5,100/m² with first-floor additions extra.

Adding floor area is the most common way to step up a property without selling. Two main approaches:

Ground-floor extension: $3,500–$5,500/m²

Easier and cheaper than going up. New slab or raised floor, new external walls, roof, and tying the extension into the existing services. A 25m² ground-floor extension lands at $90,000–$140,000 for the build, plus design, certification, and any fit-out for the new space (kitchen, bathroom, bedroom).

Second-storey addition: $4,500–$7,000/m²

Considerably more complex. Adds load to the existing structure, usually requires structural reinforcement of the ground floor, scaffold and access costs, and you’ll need to lift the existing roof off. A 60m² second storey (typically two bedrooms and a bathroom) lands at $270,000–$420,000. Some builders won’t take on second-storey adds because of structural risk; specialists are the better approach.

How the published sources compare

Extensions and second storeys, cost per square metre: this guide against the published sources
SourceGround-floor extensionSecond-storey additionBasis
this guide$3,500 to $5,500 /m²$4,500 to $7,000 /m²metro Australia, shell and services tie-in, incl. GST
Archicentre 2026$2,700 to $5,100 /m²no published rangenew construction and extensions, basic shell and roofline, incl. GST; first-floor additions (stair, structure, roof alteration) are an extra with no published rate
CKA, Jun 2026$2,510 to $3,760; $3,340 to $4,630; $5,000 to $5,990 /m²no published rangeshell under 300 m², Sydney base, excl. GST: standard, quality, luxury

Every source prices the shell only. Kitchens, bathrooms and laundries in the new space are priced from the room tables.

Granny flat: $130,000–$220,000

A separate dwelling on your existing block. State-by-state planning rules vary significantly, so read our granny flat guides for the full per-state breakdown. Granny flats often have the best ROI of any renovation because they add rental income (or accommodate ageing parents / adult children without buying a second property), and they appeal to the investor buyer pool at sale.

Knock-down rebuild

As at September 2026, demolishing a typical detached house costs $20,000 to $45,000 and a new house $1,800 to $2,800/m² from a volume builder or $3,500 to $6,000/m² custom; the ABS-derived average for every new house built in 2024-25 is $1,967/m² (Landmark Valuations, July 2026) and Rider Levett Bucknall's Riders Digest 2026 prices a Sydney custom-built house at $2,500 to $7,600/m².

At some point, renovation becomes worse value than starting fresh. Rough rule: if your projected renovation budget exceeds 70–80% of the cost of a new build, look at knock-down rebuild instead.

  • Demolition: $20,000–$45,000 for a typical detached house, more for asbestos remediation or difficult access.
  • New build (volume builder): $1,800–$2,800/m² for a project home. A 220m² home lands at $400,000–$600,000.
  • New build (custom architect-designed): $3,500–$6,000/m². A 220m² home lands at $750,000–$1.3M.
  • Renting elsewhere during the build: 8–14 months of rent, factor it in.

How the published sources compare

Knock-down rebuild: demolition and new build costs against the published sources
SourceDemolitionNew houseBasis
this guide$20,000 to $45,000$1,800 to $2,800 /m² volume builder; $3,500 to $6,000 /m² customtypical detached house; volume builder and custom per m², incl. GST
RLB Riders Digest 2026$170 to $280 /m²$2,500 to $7,600 /m²Sydney: demolition per m² of house (timber-framed $170 to $245, brick $175 to $280, incl. footings, services and removal); custom-built house per m² GFA
Landmark, Jul 2026 (ABS)no published range$1,967 /m² national; NSW $2,396, VIC $1,914, QLD $1,987, SA $1,788, WA $1,585ABS average of every new house built in 2024-25, 241.5 m² average
Canstar, Jul 2024$40 to $65 /m²; about $17,000, up to $40,000no published rangeper m² and a three-bedroom average, attributed to Oneflare
Canstar, Jun 2025$12,000 to $40,000$443,828 average new homeG.J. Gardner Homes demolition range; ABS average new home cost 2023-24
Master Builders, Aug 2026no published rangemore than 50% higher than before the pandemic; up 5.7% over the yearcost of building a home against pre-pandemic
“Every renovation budget that comes in on quote was over-budgeted on day one. The good builders know this. The good owners budget for it.”
Andy McMaster, Editor

Pre-construction costs

Easy to forget, easy to underestimate. Before any builder turns up, you’ll typically pay:

  • Architect or building designer: 8–12% of construction cost for a full service (concept through to documentation and contract admin). Building designers are typically 50–70% of an architect’s fee.
  • Structural engineer: $3,000–$8,000 for most projects.
  • Soil test: $400–$900.
  • Surveyor (boundary, contour): $1,000–$3,000.
  • Council application fees: $1,500–$5,000+, escalating with complexity.
  • Private certifier: $2,000–$5,000.
  • Bushfire / flood reports where applicable: $1,500–$5,000 each.
  • Heritage / planning reports where applicable: $2,000–$10,000.

Total pre-construction costs typically run 8–15% of project value. On a $400,000 renovation that’s $32,000–$60,000 spent before any tools come out.

Fixed-price vs cost-plus contracts

The two main contract structures.

Fixed-price (lump sum)

Builder quotes a single total. You pay that, regardless of what it actually costs them to build. Pros: certainty of cost, easier to finance, simpler invoice cycle. Cons: builder bakes in a contingency margin (typically 8–15% on top of expected cost), variations are expensive because each one is a contract amendment, and quality builders may decline if scope is too uncertain.

Cost-plus

You pay the actual cost of materials and trades, plus a fixed builder’s margin (typically 15–20%) and a fixed management fee. Pros: transparency on actual costs, often cheaper if well-managed, better fit for complex jobs and heritage properties. Cons: you carry the cost-overrun risk, harder to finance, requires more active management from the homeowner.

For straightforward renovations under $300K, fixed-price is usually the right call. For complex jobs, heritage properties, or projects where scope will evolve, cost-plus often delivers better value if you trust the builder. Read our fixed vs variable guide (the same principle applies to contract types).

How to finance the work

Four common options:

  • Cash / savings. The cheapest financing, no interest cost. Suits cosmetic and small structural work.
  • Equity release / top-up loan. Refinance your existing home loan to release equity and use it for renovation. Best for smaller-to-mid renovations where the timeline is short.
  • Renovation loan (drawdown loan). A purpose-built product that releases funds in progress payments tied to construction milestones. Better for larger structural work but harder to qualify for, with stricter LVR limits during the build phase.
  • Construction loan. Used for knock-down rebuilds and substantial extensions. Interest is charged on progressive drawdowns, principal-and-interest payments don’t start until the build is complete. Most lenders cap LVR at 80% during the build phase, sometimes 90% with LMI.

For anything over $100K, talk to a broker. Most lenders price renovation and construction lending very differently, and a broker with construction experience will know which lenders to approach for your specific scope. See our how to choose a mortgage broker guide.

What actually adds value at sale

If your motivation is selling later for more, the ROI is consistently disappointing. Approximate "recover at sale" ratios in 2026 metro markets:

  • Cosmetic refresh (paint, flooring, tapware, garden, deep clean): 3× to 10× cost recovered at sale.
  • Kitchen renovation (mid-range): 0.6× to 1.2× cost recovered.
  • Bathroom renovation: 0.5× to 1.0× cost recovered.
  • Granny flat (suburb dependent): 0.8× to 1.4× cost recovered, plus rental income before sale.
  • Second storey or extension: 0.7× to 1.0× cost recovered in most suburbs; can exceed 1.0× in high-end suburbs where per-m² value is high.
  • Pool: 0.4× to 0.8× cost recovered.

Renovation pays off when it’s for you to live in. Renovating purely to flip is usually a worse trade than buying a better property in the first place.

How to budget honestly

A defensible renovation budget has five parts:

  1. Builder quote (or your trades-by-trade quotes if managing yourself).
  2. Pre-construction costs: design, engineering, council, surveys.
  3. Contingency: 10–15% baseline, 15–20% for older homes or structural work.
  4. Scope creep: 3–7% for the changes of mind you haven’t had yet but will.
  5. Holding costs: somewhere to live during the build, storage, double mortgage if relevant.

Add them up. If your quoted price is $300,000, your defensible total budget is closer to $370,000–$410,000. If you can’t fund the upper end of that range without stress, narrow the scope before signing. The calculator adds the first three for you.

Common questions

How much does it cost to fully renovate a house in Australia?

For a standard three-bedroom house in a metro area, a mid-range full renovation in September 2026 costs $200,000 to $500,000, or roughly $2,800/m² to $4,500/m² of the area being renovated. Cosmetic-only projects land at $2,000/m² to $2,500/m²; premium projects (architect-designed, high-end finishes, structural work) can exceed $6,000/m². Archicentre Australia's Cost Guide 2026 puts renovation inside an existing building at $1,600/m² to $3,900/m² with standard materials, and the ABS reports house construction output prices up 5.9% in the year to June 2026. Regional work generally costs more, not less: the CKA cost indicator (June 2026) adds 5 to 15% outside the capital cities.

Is $100,000 a good budget for renovating my house?

Yes for two rooms and a refresh, no for a whole house. At September 2026 metro prices, $100,000 covers a mid-range kitchen ($25,000 to $45,000) and a standard bathroom ($15,000 to $22,000) with $33,000 to $60,000 left for paint, flooring and lighting (Canstar, January 2025: a living-area refresh is $7,000 to $15,000 or more), or about 40 to 50 m² of cosmetic work at $2,000/m² to $2,500/m². A mid-range whole-house renovation starts at $200,000. This guide's contingency is 10 to 15%, so hold back $10,000 to $15,000 and plan the work at $85,000 to $90,000.

Can I renovate a bathroom for $10,000?

Only as a cosmetic refresh. Three Birds Renovations (January 2026) puts a budget bathroom, a small cosmetic refresh with budget materials, at $8,000 to $15,000; in practice that means keeping the existing tiles and layout. A full strip-out with new waterproofing and tiling is $15,000 to $22,000 in this guide's metro range, $17,500 to $35,000 in Archicentre Australia's Cost Guide 2026 and $13,360 to $22,810 before GST in the CKA cost indicator (June 2026). Waterproofing alone is $1,500 to $3,000 and is required by AS 3740, so a $10,000 budget cannot stretch to moving fixtures or retiling a whole room.

Is it cheaper to renovate or rebuild?

This guide's rule of thumb: once a renovation quote passes 70 to 80% of the cost of a new build, price a knock-down rebuild. The ABS-derived average for every new house built in 2024-25 is $1,967/m² (about $475,000 for the 241.5 m² average, Landmark Valuations, July 2026), plus demolition at $170 to $280/m² in Sydney (Rider Levett Bucknall, Riders Digest 2026), which is $25,500 to $42,000 for a 150 m² house. Renovation inside an existing building runs $1,600/m² to $3,900/m² (Archicentre Australia, 2026) but only touches the area you renovate, and rebuilding adds 8 to 14 months of rent elsewhere. Structural renovation of an older home, with asbestos, wiring and plumbing unknowns, is where rebuilding wins.

What's the cheapest way to renovate a house?

Cosmetic work delivers the biggest perceived change for the smallest spend. Paint, new flooring, new lighting, new tapware, deep cleaning, and tidying up the garden can transform a tired home for $20,000–$40,000 and is realistic DIY-plus-tradies territory. Structural work (moving walls, new wet areas, new windows) multiplies cost quickly because it triggers waterproofing, electrical, plumbing, certification, and structural engineering. If you don't need to move a wall, don't move a wall.

Do I need council approval to renovate?

Depends on what you're doing and where. Cosmetic work (paint, flooring, tapware swap, kitchen cabinet replacement in the same footprint) generally doesn't need approval. Structural changes (moving walls, new windows, extensions, second storeys), new wet areas, and most external changes typically need either a Complying Development Certificate (NSW) / building permit (VIC) / building work approval (QLD) at minimum, and a full DA / planning permit if you're changing footprint, height, or use. Every council has different exempt-development rules, so confirm before you start. Doing work without required approval can mean stop-work orders, fines, and forced rectification at sale.

How much does a kitchen renovation cost in Australia?

Budget kitchen ($12,000–$18,000): flat-pack cabinetry, laminate benchtop, basic appliances, kept in the same layout. Mid-range ($25,000–$45,000): custom or premium flat-pack cabinetry, stone benchtop, quality appliances, possible minor layout change. Premium ($60,000+): designer cabinetry, premium stone or porcelain benchtop, integrated high-end appliances, full layout reconfiguration with new plumbing and electrical. Cabinetry typically represents 40–55% of the kitchen budget; benchtops 10–20%; appliances 15–25%; labour for installation, plumbing, electrical and tiling 15–25%. Cross-checks: Archicentre Australia's Cost Guide 2026 puts a standard kitchen fit-out at $23,000 to $49,000; Houzz's 2023 Australian study found a median kitchen spend of $30,000.

How much does a bathroom renovation cost?

Standard bathroom ($15,000–$22,000): in-place refresh, new tiles, vanity, toilet, shower screen, tapware. Premium bathroom ($25,000–$40,000+): premium tiles and stone, frameless screen, freestanding bath, designer tapware, possible layout change, underfloor heating. Waterproofing alone is $1,500–$3,000 and is legally required to AS 3740. Never skip or shortcut this; it's the single biggest cause of insurance claims years later. Tiling labour is usually $60–$120/m² for the labour alone, materials separate. Cross-checks: Archicentre Australia's Cost Guide 2026 puts a bathroom or ensuite fit-out at $17,500 to $35,000; Three Birds Renovations (January 2026) quotes an industry average of about $26,000.

How much should I budget for contingency?

Add 10–15% on top of every quoted price for unexpected issues, and another 5% for scope creep (you'll change your mind about something, almost everyone does). On structural work or older homes (pre-1990 in metro areas, anything pre-1970), increase to 15–20% contingency because you can't see what's behind the walls until you open them up. Asbestos, rotten timbers, outdated wiring, lead paint, and undocumented previous work all cost money to remediate when discovered.

Should I get a fixed-price or cost-plus contract?

Fixed-price gives you cost certainty but at the price of a larger contingency baked into the builder's quote (typically 8–15% of the contract value). Best for straightforward jobs where the scope is clear. Cost-plus (where you pay actual costs plus a fixed builder's margin, typically 15–20%) gives you transparency on actual costs and is often cheaper if the scope is well-managed, but you carry the risk of overruns. Best for complex jobs, heritage properties, or when you trust the builder. Get our fixed-vs-variable contracts guide for the full comparison.

Will renovating add value at sale?

Sometimes, but the maths is often disappointing. As a rough guide: cosmetic work (paint, flooring, styling) returns 3–10× its cost at sale. Kitchen and bathroom renovations return 0.6–1.2× their cost, usually less than you spent. Second storey additions and extensions return 0.7–1.0× their cost in most suburbs (the exception is high-end suburbs where the per-square-metre value justifies the build cost). The renovation premium goes up when the renovation lifts the property into a different buyer pool (e.g. a 2-bed house becomes a family-suitable 4-bed), and down when it over-improves for the suburb.

Keep reading

Sources and methodology