What a Home Renovation Really Costs in Melbourne (2026)

Planning a renovation in Melbourne? If so, the first question on your mind is probably how much is this all going to cost.

This is a fair question, and it is one that does not have a simple answer. Costs vary enormously depending on anything from size and scope to planning approvals and subcontractors.

At DPV Construction, we’ve spent years helping homeowners across Melbourne’s inner east and south. From Box Hill to Camberwell and Park Orchards, our dedicated team has been turning renovation ideas into reality for many years, and budget is usually the first conversation we have.

Having featured on The Block, we know better than anyone that what you see on a TV show doesn’t always reflect what you can do with your home, nor how much it costs or how long it can take.

This guide will break down what you can realistically expect to pay for home renovations in Melbourne in 2026. We’ll look at bathrooms and kitchens, extensions and whole-home renovations.

What Affects Renovation Costs in Melbourne

In Melbourne, the costs of renovations can be anywhere from $3,500 to $5,500 per square metre. There are four main factors that influence the price range of a renovation.

• Scope and Complexity. If you’re only going for a cosmetic refresh, then the scope of your renovation would be small and the costs would reflect that, with minor remodelling starting from $20,000. For more complex rooms with plumbing and electrical needs, you’d be investing more money for a complete job.
• Structural Changes and Site Access. If you need to restump your home due to renovations, or you’re removing a load-bearing wall, these require specialists and permits. This adds time and money to the project. In regards to the site, if you have a sloping block or access to your block is restricted due to narrow streets or hilly terrain, this can add time and cost too.
• Property Age and Heritage Overlays. Older homes can hide outdated wiring, asbestos, rot behind the walls, and may require more extensive work. If your home falls under a Heritage Overlay you would need specialist tradies and materials which can add significantly to the project’s budget.
• Materials and Fixtures. Generally project costs are split around 60% to labour and 30% to materials, with the other 10% for contingencies. Premium quality products will push your project budget upwards as well.

Now let’s look at renovation costs room-by-room.

Bathroom Renovation Costs

Bathroom renovations with Melbourne-based DPV Construction typically range from $45,000 to $70,000+, depending on the scope. Plumbing and labour costs take the lion’s share of your project budget.

• Cosmetic Updates: $25,000 – $50,000. Replacing your taps and fixtures, some painting and a bit of tiling. No changing the bathroom layout.
• Moderate Renovations: $40,000 – $70,000. Fixture changes, tiling of the floor and some of the wall, paint work and standard plumbing upgrades.
• Luxury Renovations: $50,000 – $80,000+. Premium tapware and fixtures, high-end toilet and bathware, layout change and subsequent plumbing and electrical work.

Factors that can Impact Your Quote

Moving drain points can add $2,000 to a project, not to mention relocating taps. Installing new lights and new exhaust fans would take up to 15% of your budget as well.

You need to fully waterproof wet areas, especially after a renovation. This can cost anywhere up to $3,500 and it must be done right, the first time. If not, the costs further down the line can be significant.

If you’re doing a full renovation, there would be demolition costs. If it is an older home there may be asbestos in the walls which would add more for the removal and disposal.

Kitchen Renovation Costs

DPV Construction provides bespoke kitchen renovations across Melbourne, and projects typically range between $40,000 and $90,000 depending on your scope. Moderate renovations to your kitchen could set you back up to $80,000, while a bespoke, full-kitchen fit-out could easily top $100,000 for a quality job.

Factors that could influence the total project cost include:

• Scope and Layout. If you’re changing the layout of your kitchen, this would require new plumbing and electrical work.
• Cabinetry. While flat-pack cabinets can look good and save money, custom-built joinery that is made especially for you could set you back anywhere up to $35,000 or more.
• Benchtops and Splashbacks. Prices depend on materials. At the lower end of the price range you could have laminate. Mid-range has you looking at solid timber or stainless steel. Premium materials include polished concrete or natural stone, such as marble.
• Appliances. Possibly the most transparent cost in a kitchen renovation. You can choose the appliances based on your budget quite easily. French door fridges that are plumbed in for constant water cost more than a single door fridge, naturally. Wanting the best stove and oven set up will, naturally, push your budget up.
• Site Preparation. If you’re opening up the kitchen and need walls removed, or if you have an older home that needs all the wiring replaced before work can commence, this time and work will also push the budget up.

Laundry Renovation Costs

Another wet area that has unique needs, a laundry renovation can be a good small-budget project, or can be upwards of $25,000 if you need to do the plumbing and wiring again, and fully waterproof around sinks and machinery.

A cosmetic refresh which could include new flat-pack cabinets, some new tapware and a fresh coat of paint, could set you back around $15,000.

With a more involved renovation with custom cabinets, new benchtops and tiling and some new appliances with minor plumbing work, you could be looking anywhere up to $21,000.

A full renovation or a relocation of the laundry, with structural and layout changes, new waterproofing, a comprehensive plumbing and electrical process, plus custom cabinets and joinery and new appliances, you could be in the ballpark of $30,000 to get your dream laundry.

Factors that could influence or change the end dollar value include:

• Fully complying with wet area safety. A licensed plumber needs to do all the pipe work and waterproofing.
• If you’re moving the washing machine, then new outlets and drainage need to be installed.
• Joinery and Storage. Of course, bespoke cabinets with integrated hampers cost more than DIY flat packs.

Home Extension Costs

Adding new rooms to your existing home can boost the resale value of your home and allow you more space to live in. Home extensions in Melbourne can cost anywhere from $4,500 and $7,000 per square metre. This depends on structural complexity and finish quality. Adding a second-storey addition is usually more expensive due to scaffolding and engineering demands.

Single Storey Extensions

Cost-wise you would be looking at between $4,500 to $7,500 per square metre, which for a typical extension of 60 squares, could cost you up to $450,000 depending on engineering costs such as restumping and foundation work, site access, plans and permits and more. Many single storey extensions include new bedrooms, second bathroom and living areas.

Double Storey Extensions

Adding a second storey to your home, you would be looking at around $5,000 to $8,000 per square metre. So with a second floor being around 120 square metres, you could be looking at a renovation bill of $600,000 or more.

This is a more complex build than doing a single storey. You need to upgrade the foundations of the home to cope with the extra weight. Scaffolding needs to be erected outside for safety. Unique factors such as installing staircases can add money to the project.

Renovating upwards for a second storey is a good idea if land is scarce. You can get more living space without taking it away from your yard.

Hidden Costs to Budget For

You can budget for tapware, appliances, painting and tiling. However, there can be some costs that sneak up on you that can really take a bite. This is why we recommend at least a 10% contingency in your budget, just in case.

Permits & Council Fees

• Planning & Building Permits: Base build prices rarely cover the cost of local council or private certifier approvals. Click here for a guide to fees from Planning Victoria.
• Asset Protection & Council Bonds: Refundable deposits required by your local council in case heavy machinery damages footpaths, kerbs, or stormwater drains.
• Specialist Reports: Mandatory fees for geotechnical reports, bushfire (BAL) assessments, or flood reports if you are in a designated zone.

Unexpected Site & Structural Issues

• Site evaluation. This is to check the soil type, look for trees with invasive roots, or if the ground is rocky and you need specialist equipment to break it up. The soil type can also give information about water retention or drainage, which impacts the type of foundations needed.
• Structural Rot. Sometimes when removing walls you find surprise rot or termite infestations. This immediately shoots the price up as you need repairs and to ensure the renovations are safe and secure.
• Temporary Utilities. The builders will require more power and water while they work. This can add a lot to your electricity and water bills during the renovation.

Temporary Accommodation & Delays

• Accommodation. For big renovations you may need to rent a place or stay in a hotel while the work is being done.
• Storage. You may need to pay for storage of your furniture for the duration of the project.
• Overrun costs. Bad weather, supply chain issues and tradie delays can extend the time of the project. If you’re in temporary accommodation, this means more time away from home and more costs to stay where you are.

Post-Handover

• Landscaping. You’ve had your home renovated, but that does not include landscaping your front garden, nor having a new driveway. Often once you’ve beautified the house, you want to make the whole place nice.
• Window Covering If you’re adding an extension, curtains are often not included in that price. Additionally, if renovating a kitchen or bathroom, and you have bigger and better windows than before, you will need new curtains to fit.

Getting an Accurate Quote for Your Renovation

Renovation costs in Melbourne vary so much because every home, block and brief is different. The figures in this guide are a solid starting point, but the only way to know exactly what your project will cost is to get a proper quote from a builder who understands the local landscape.

At DPV Construction, we’ve built our reputation on home renovations across Melbourne’s inner east, so we know how to price a project properly from the outset. We factor in site access, permits and the small details that often get missed in a rough estimate. Whether you’re planning a full home extension in Prahran, or Mont Albert, or a more focused bathroom renovation in Richmond or Camberwell, we’ll walk you through the numbers before any work begins, so there are no surprises down the track.

If you’re ready to turn your renovation plans into a real budget, get in touch with DPV Construction for a detailed, no-obligation quote. We’ll help you understand exactly where your money is going and how to plan for the 10% contingency that every good renovation budget deserves.