How much does it cost to renovate a house in Australia? What parts of a house are most expensive to renovate?


Renovating a house is an exciting event that can transform your living space and potentially increase the value of your property by a significant amount. However, the cost of renovations can vary greatly depending on a variety of factors (which we will cover shortly).

In this article, we’ll explore how much it typically costs to renovate a house in Australia, identify the areas of a house that are generally the most expensive to renovate, and indeed which can add the most value to your property.

If you’ve been thinking about starting a renovation project in your home but have no idea where to begin, give this article a read…

How Much Does It Cost to Renovate a House in Australia?

First things first, how much does it typically cost to renovate a house in Australia?

The cost of house renovations can vary significantly based on various factors such as the size of the property, the extent of the renovations being carried out, your location, the quality of the materials used, and of course, labour costs. Here’s a general overview to give you a clearer idea:

  • Minor Renovations: minor renovations, such as repainting, replacing fixtures, or updating flooring, can cost between $10,000 and $50,000.
  • Medium Renovations: medium-scale renovations, including kitchen or bathroom updates, may range from $30,000 to $100,000.
  • Major Renovations: extensive renovations, such as adding an extension to your home, remodelling multiple rooms, or structural changes, can cost upwards of $100,000, easily reaching several hundred thousand dollars – and even in the millions for high-end properties with significant renovation plans.

What Parts of a House Are Most Expensive to Renovate?

As you’ve already guessed, certain areas of a house tend to be costlier to renovate due to the complexity of the work involved, the materials required, and the need for specialised trades. Here are some examples of the more expensive rooms in a home:

  • Kitchen: kitchen renovations often involve plumbing, electrical work, cabinetry, countertops, and appliances, making them one of the most expensive areas to renovate. That said, the kitchen is easily the most important room in the home so it is well worth the investment.
  • Bathroom: bathroom renovations typically require plumbing updates, fixtures, tiling, and (in some cases) structural changes, thus contributing to their higher cost. Again, much like the kitchen, bathrooms play a very important role in the home so make sure you don’t neglect them in the renovation process.
  • Structural Changes: any renovations that involve structural changes, such as removing walls, adding extensions, or altering the layout can be costly due to the need for engineering expertise and potential permits/planning permissions.

Don’t let the higher price tags put you off. While a kitchen renovation may set you back more, it can generally add significant value to your home – whilst similarly increasing its overall ‘buyability’ to prospective investors.

How Much Value Can a Home Renovation Project Add to Your Property?

Home renovations have the potential to increase the value of your property rather significantly, but the extent of the value added can vary based on several factors, including the quality of the renovations, the current state of the property, and the local real estate market. Here are some general considerations for your convenience:

  • Return on Investment (ROI): certain renovations, such as a full bathroom upgrade, tend to offer a higher return on investment compared to other, lower-priority
  • Market Demand: consider the preferences and expectations of potential buyers in your area. Renovations that align with current market trends and buyer preferences (e.g., maximising smaller spaces), are more likely to add value – and indeed fetch a higher asking price when going to market.


Remember, it’s not just major renovations that can add value to a property. In fact, there are plenty of low-cost changes that can significantly improve the overall aesthetic, value, and buy ability of a property as well (e.g., installing new flooring, minor landscaping upgrades, or re-painting the exterior and interior walls of the home).

Which Room Upgrades Can Add the Most Value to a Home?

Again, while every renovation project is unique, certain room upgrades are known to offer a higher return on investment and appeal to potential buyers. Consider the following:

  • Kitchen: a modern, well-designed kitchen can significantly enhance the value of a home. Focus on quality finishes, functional layouts, and energy-efficient appliances.
  • Bathroom: upgrading bathrooms with stylish fixtures, contemporary designs, and efficient storage solutions can greatly increase the appeal and value of your property.
  • Outdoor Spaces: enhancing outdoor areas, such as adding a deck, patio, or landscaping improvements can create additional living space and increase the overall value of your home.

Which Is Better: DIY Home Renovations or Hiring the Experts?

If you are trying to decide between DIY renovations and hiring professionals to take care of everything for you, there are a number of important factors to consider:

DIY Renovations:

  • Pros:
    1. Cost savings on labour.
    2. Flexibility to work at your own pace.
    3. Personal satisfaction and learning experience.
  • Cons:
    1. Limited expertise in certain areas.
    2. Potential for mistakes that may require costly fixes.
    3. Time-consuming and may cause disruptions to your daily life.


Hiring Professionals:

  • Pros:
    1. Expertise and experience in specialised areas.
    2. Fast and efficient completion of the project.
    3. Access to professional tools and resources.
  • Cons:
    1. Higher upfront costs due to labour expenses.
    2. Less control over the project timeline.
    3. The need for thorough research and selection of reliable contractors.


The reality is, unless you have significant experience in construction, and proficiency in various other trades, doing a DIY home renovation is not recommended.

Yes, certain smaller upgrades and decorative changes can be fun for a DIY project, but when it comes to changing the structural integrity of your home and/or messing around with plumbing and electrics, you are almost certainly much better off hiring a professional home renovation company instead.


Let’s recap:

  • Renovating a house in Australia can be rather expensive, depending on the scope of the project and the focus areas of the house being renovated.
  • Kitchen and bathroom renovations are often among the most expensive upgrades due to the complexity and specialised trades involved, however, they tend to add the most value as well.
  • Whether you choose to tackle renovations yourself or hire professionals, consider your skill level, available time, and budget.
  • Ultimately, a successful renovation can not only enhance your living space but also potentially increase the value of your home.


And that about sums it up; plan wisely, consider your goals, and embark on your renovation journey with careful consideration – while allowing yourself time to enjoy the process as well!

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