How Much Does a Renovation Cost in Melbourne in 2026? (Real Numbers & What Impacts Price)

When people search for a builder in Melbourne, one of the first questions they type into Google is:

“How much does a renovation cost?”

The answer isn’t as simple as a square-metre rate — especially in Melbourne’s inner suburbs where access, heritage overlays and planning requirements change everything.

At Inside and Out Builders, we specialise in high-quality renovations across Melbourne’s north, east and inner suburbs. Here’s what you can realistically expect in 2026.

Average Renovation Costs in Melbourne

For quality custom renovation work within 5–10km of Melbourne CBD:

  • Cosmetic renovation: $2,000–$3,000 per m²

  • Structural renovation: $3,500–$5,000 per m²

  • High-end custom renovation: $5,000–$7,000+ per m²

For example:

  • Full house renovation (150m²): $450k–$900k+

  • Kitchen renovation: $45k–$120k+

  • Bathroom renovation: $35k–$70k+

Inner-city projects (Fitzroy, Carlton, Hawthorn, South Yarra, Brunswick, Kew etc.) often sit at the higher end due to access and compliance requirements.

What Impacts Renovation Cost in Melbourne?

1. Access & Tight Sites

Inner suburbs often have:

  • No rear access

  • Limited street parking

  • Neighbour protection requirements

  • Permit-controlled zones

This affects labour time and material handling.

2. Heritage Overlays

Many homes within 5–10km of the CBD fall under heritage controls.
This can impact:

  • Window replacements

  • External cladding

  • Rooflines

  • Extensions

Council compliance adds both design time and construction precision.

3. Structural Changes

Removing load-bearing walls or adding extensions increases cost significantly compared to cosmetic upgrades.

4. Level of Finish

There’s a big difference between:

  • Off-the-shelf cabinetry
    vs

  • Fully custom joinery

Premium finishes, passive design, high-performance glazing and bespoke detailing increase cost — but also long-term value.

Why Choosing the Right Builder Matters

A renovation isn’t just about price per square metre.
It’s about:

✔ Quality control
✔ Site management
✔ Clear communication
✔ Understanding Melbourne council requirements
✔ Delivering on budget

At Inside and Out Builders, we focus on high-quality renovations where detail matters.

If you’re planning a renovation within Melbourne’s north, east or inner suburbs, speak with us early — good planning protects your budget.

Thinking about renovating?
Contact Inside and Out Builders to discuss your project.