HOW MUCH DOES A HOME RENOVATION COST IN MELBOURNE? (2026 GUIDE)

How Much Does a Home Renovation Cost in Melbourne? (2026 Real Guide)

Most Melbourne homeowners underestimate renovation costs by $50K to $150K+.

Not because they didn’t budget.
But because they were never given a clear picture to begin with.

So if you’re asking:
“What does it actually cost to renovate a house in Melbourne in 2026?”

Here’s the honest answer, based on what we’re seeing across real projects right now, including recent work like our Malvern East renovation as a renovation builder in Melbourne.

Average Home Renovation Cost in Melbourne (2026)

If you’re planning a home renovation in Melbourne, understanding realistic costs early can save you from major budget surprises later.

Every project is different. But most renovations fall into a few clear brackets.

If you’re simply refreshing your home (paint, flooring, minor upgrades), most clients are spending:

• $40,000 to $100,000

If you’re renovating key areas like the kitchen, bathroom, and living spaces:

• $100,000 to $250,000

For a full home renovation in Melbourne:

• $250,000 to $600,000+

And for more complex projects, including structural changes or when working with an extension builder in Melbourne:

• $600,000 to $1,000,000+

Based on current Melbourne projects, older homes tend to push toward the higher end once works begin.

What Does That Look Like in Real Life?

A typical 3-bedroom home renovation in Melbourne, including a kitchen, bathroom, and some layout changes, will often land between:

• $300,000 to $500,000

That number shifts depending on finishes, structural work, and how well the project is resolved before construction starts.

For homeowners considering both renovations and extensions in Melbourne, combining the two will typically push costs toward the higher end of this range.

Kitchen Renovation Cost Melbourne Homeowners Can Expect

The kitchen is usually where budgets stretch the most during a home renovation in Melbourne.

Typical ranges:

• Basic kitchen: $20,000 to $35,000

• Mid-range kitchen: $35,000 to $60,000

• High-end kitchen: $60,000 to $120,000+

Costs climb quickly with:

• Custom cabinetry

• Stone benchtops

• Integrated appliances

• Butler’s pantries

None of these are unusual anymore, but they do add up fast.

Bathroom Renovation Cost Melbourne Guide

Bathrooms are smaller, but often more complex, particularly in older Melbourne homes.

Typical ranges:

• Standard bathroom: $18,000 to $25,000

• Mid-range bathroom: $25,000 to $40,000

• High-end bathroom: $40,000 to $70,000+

Full-height tiling, custom joinery and premium fixtures push costs toward the higher end fast.

Renovation Cost Per m² in Melbourne

For larger projects, per square metre pricing gives a useful reference point.

As a guide:

• Standard renovations: $2,500 to $4,500 per m²

• High-end renovations: $4,500 to $7,000+ per m²

So for a 150m² home renovation in Melbourne, that puts you somewhere between:

$375,000 to $700,000+

The range is wide because the variables are wide — layout changes, structural work, and finish level all shift the number substantially.

Why Most Renovation Budgets Blow Out

In our experience, the single biggest cause of budget overruns is incomplete scope and unresolved drawings at the time of pricing.

A builder prices what’s on the page. If the drawings don’t fully resolve the details — junctions, joinery, finishes, structural elements — those gaps get filled during construction. That’s when costs move.

Most homeowners don’t engage a builder until they have drawings and want a quote. By that point, the design is set, the decisions are made, and the builder is pricing a document rather than helping shape one.

• The projects that run most predictably are the ones where the builder is involved earlier — during design, not after it.

A Real Example: Malvern East Project

Our recent Malvern East renovation landed in the $250,000 to $500,000 bracket — a substantial whole-home renovation with a high level of finish.

The reason it ran predictably wasn’t luck. The scope was properly resolved before construction started. Every decision that could be made in advance was made in advance. That meant the build could proceed without constant variation conversations or cost surprises mid-project.

That’s the standard we hold every project to.

Hidden Costs Worth Planning For

Even well-scoped renovations carry costs that homeowners often don’t factor in early.

Common ones include structural upgrades in older homes, electrical and plumbing updates, design, engineering, and permit fees, and temporary accommodation. These can add $10,000 to $40,000 or more depending on the project.

A 10 to 15 per cent contingency is standard practice. On a $400,000 renovation, that’s $40,000 to $60,000 sitting in reserve. Budget for it from the start.

What Actually Drives the Final Number

Cost isn’t just about size. It’s driven by decisions, detail, and timing.

The age of the home matters — older homes almost always uncover additional work once opened up. The level of finish matters. Structural changes matter. But the single biggest lever is how well the project is resolved before construction begins.

Most cost overruns aren’t surprises. They’re the result of gaps at the start.

Thinking About Renovating in Melbourne?

If you’re in the early stages and want a realistic picture of what your project might cost before committing to full drawings, we’re happy to walk you through it.