Cost of Home Renovation in Melbourne (2025 Price Guide)
Kitchen renovations in Melbourne average $25,000–$80,000. Bathroom renovations cost $18,000–$45,000. Full ground-floor extensions start at $250,000. Domestic Building Insurance is mandatory for any work over $16,000.
Home renovation in Victoria is governed by the Domestic Building Contracts Act 1995. Any building work valued at $10,000 or more must be done by a VBA-registered Domestic Builder. Work valued at $16,000 or more requires Domestic Building Insurance (DBI) — by law, your builder must have it in place before they take any deposit or start work.
Home Renovation Costs in Melbourne
| Service | Low | High |
|---|---|---|
| Kitchen renovation (mid-range) | $25,000 | $50,000 |
| Kitchen renovation (high-end) | $50,000 | $120,000+ |
| Bathroom renovation (mid-range) | $18,000 | $30,000 |
| Bathroom renovation (high-end) | $30,000 | $50,000+ |
| Ground-floor extension (40 sqm) | $180,000 | $350,000 |
| Second-storey addition | $300,000 | $700,000+ |
| Deck addition (merbau, 20 sqm) | $8,000 | $18,000 |
All prices are approximate estimates in Australian dollars (AUD) for the Melbourne metropolitan area. Always get written quotes before committing.
Licensing & Insurance in Victoria
Any domestic building work over $10,000 must be performed by a VBA-registered Domestic Builder. Work over $16,000 requires Domestic Building Insurance — your builder must show evidence before taking any deposit. Always sign a written Major Domestic Building Contract for work over $10,000. The contract must include start/finish dates, payment schedule, and Cooling-off rights. Verify the builder on the VBA Find a Practitioner search before signing anything.
Frequently Asked Questions
- Do I need a building permit to renovate in Melbourne?
- Most structural changes, additions, second-storey work, bathroom rebuilds, and any work to load-bearing walls require a Building Permit issued by a Building Surveyor (private or council). Your builder coordinates this. Permits also trigger inspections at key stages.
- How much does a kitchen renovation cost in Melbourne?
- A mid-range kitchen renovation in Melbourne — flat-pack or budget custom cabinets, stone benchtop, mid-range appliances — costs $25,000–$50,000. High-end renovations with full custom cabinetry and premium European appliances run $50,000–$120,000+.
- What is Domestic Building Insurance (DBI) and do I need it?
- DBI is mandatory in Victoria for any building work valued at $16,000 or more. The builder must take out the policy before accepting a deposit or starting work, and must show you the certificate of currency. It protects you if the builder dies, disappears, or becomes insolvent.
- What progress payments are allowed under the Domestic Building Contracts Act?
- Victoria caps deposits at 5% (for work over $20,000) or 10% (for work $10,000–$20,000). Progress payments must be tied to defined stages — base, frame, lock-up, fixing, completion. Never pay ahead of work completed and never agree to large up-front payments.
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Painting costs in Melbourne
Professional interior painting in Melbourne costs $25–$50 per square metre of wall. A 3-bedroom home averages $4,500–$9,000. Exterior painting runs $6,000–$15,000 for a standard weatherboard or rendered home.
Flooring costs in Melbourne
Flooring installation in Melbourne runs $80–$150 per sqm for hybrid plank, $130–$220 for engineered timber, and $130–$280 for tile — fully installed. Hybrid plank is the most popular choice for renovations due to its waterproof core and quick install.
Cleaning costs in Melbourne
Regular house cleaning in Melbourne costs $120–$280 per visit for a standard home. One-off deep cleans run $250–$550. End-of-lease (bond clean) cleaning averages $300–$700 depending on home size and condition.