Home Renovation Construction Cost Indicator – June 2026 Edition

June 22, 2026

Prepared by Caulfield Krivanek Architecture in conjunction with Rodney Vapp and Associates

Somers Holiday Residence, Australia

Many people contemplating home renovations underestimate the cost of the works. This may be due to a lack of knowledge of current construction costs, a false sense of the savings that may be made by being an owner builder or failure to consider necessary repairs or upgrades to the existing home.

This indicator has been prepared by Caulfield Krivanek Architecture (CKA Group) with quantity surveyors, Rodney Vapp and Associates and is a guide to help prospective renovators estimate the likely cost of intended renovations.

This guide should be read in conjunction with the DIY Home Improvement Guide prepared by CKA Group.

Note: Construction costs have fluctuated significantly over the past 12 months. Government expenditure on major infrastructure projects has placed sustained upward pressure on both material supply and trade availability. This was further exacerbated by supply chain disruptions and fuel shortages linked to the Middle East war, with costs of key materials such as concrete, steel and plastics increasing by 30%. However, these same pressures contributed to a slowdown in the building development sector. As demand softened and fuel prices began to stabilise, material costs have eased and the availability of builders and trades has improved. As a result, construction prices have largely stabilised and are now only slightly higher than they were 12 months ago. Looking ahead, the outlook remains uncertain. Ongoing impacts from the Middle East war may continue to place upward pressure on costs, while potential government changes to capital gains tax and negative gearing may have a downward effect. The combined result of these factors is difficult to assess.

Renovation Calculation Guidelines

CKA Group are experienced in achieving the best value for money possible. Renovation and extension costs can be estimated by using the following process:

Calculate the structural cost of new construction on a square metre basis.
Calculate the fit-out cost of the kitchen, bathrooms and laundry and add these to the structural cost.
Calculate the cost of upgrades required to the existing part of the home. Typically, rewiring, re plumbing and new guttering may be required. It is important to know the condition of your home so you can allow for all necessary repairs. Your Architect can assist you with a professional assessment here.
Calculate the cost of decks, verandas, garages, carports, etc.
Calculate GST and Professional Fees.

Structural (Shell) Cost

Standard Home
Typical brick veneer or timber extension.
Under 300m²	$2,510 – $3,760 / m²
Over 300m²	$1,670 – $2,510/ m²
Quality Home
Timber or brick veneer extension with design feature walls and bay windows.
Under 300m²	$3,340 – $4,630 / m²
Over 300m²	$2,220 – $3,360 / m²
Luxury Home
Timber, brick veneer, and brick extension with high ceilings, as well as quality wall and floor finishes.
Under 300m²	$5,000 – $5,990 / m²
Over 300m²	$3,310 – $5,430 / m²

Fitout Cost

Kitchen
Standard Kitchen	$14,360 – $19,760
Quality Kitchen	$22,200 – $35,600
Luxury Kitchen	$32,690 – $50,900
Bathroom
Standard Bathroom	$13,360 – $22,810
Quality Bathroom	$20,640 – $32,150
Luxury Bathroom	$32,000 – $50,360
Ensuite
Standard Ensuite	$8,490 – $13,090
Quality Ensuite	$15,020 – $21,200
Luxury Ensuite	$22,540 – $34,090
Laundry
Standard – Luxury	$6,000 – $22,680
Powder Room
Standard – Luxury	$6,550 – $21,530

Existing House Upgrades 150 to 240m²

New Guttering	$4,100 – $5,770
Rewiring	$8,770 – $13,200
Re-Plumbing	$11,400 – $22,600
Re-Roofing
Concrete tiles	$13,200 – $21,400
Terracotta tiles	$15,900 – $23,000
Colorbond	$10,580 – $16,300
Slate	$25,530 – $68,900
External re-Painting
Poor condition	$5,400 – $7,660
Good condition	$3,890 – $5,280
Internal re-painting – per room	$1,320 – $1,810
Window replacement (2 sq.m window)	$870 – $1,950
Rising damp repair	$2,060- $6,960
Underpinning cracked brick walls (per m)	$1,200 – $2,370

Construction Add Ons

Calculate the approximate cost of carport, garages, verandas.

Carports & Garages
Single Carport (15m²)	$8,360
Double carport (35m²)	$18,510
Single garage (15m²)	$17,490
Double garage (35m²)	$38,950

Decks
Decks	$300 – $500/sq.m

On a relatively flat site with good soil add the following percentage allowance for external works and services to cover fencing, paths, driveways, landscaping, drainage and water supply, electrical and gas connections.

External works and services
Works up to $150K	Add 20% – 25%
Works from $150K to $500K	Add 15% – 20%
Works over $500K	Add 10% – 20%

Adjustments will have to be made to the above percentages depending on site conditions such as soil conditions, slope of the site and accessibility to the work site. Your Architect can help estimate these costs.

GST & Professional Fees

You will need to add 10% GST to your estimate. You may be able to claim some of this back depending on your personal taxation structure and the nature of your renovation. Your accountant or taxation consultant can advise you of this.

You will also need to make an allowance for architects, structural engineers and possibly other design consultants’ fees. New building works may require planning and building permits, as well as council approvals, and in some cases zoning approval. Speak with your Council, as they should be able to provide you with estimates of costs, as well as expected approval time frames. These would typically be a total of 15% to 20% of the construction cost, and generally need to be paid in the early stages of the project.

Regional Differences

Construction prices vary from city to city and are generally more expensive in rural areas. Using Sydney construction prices as a base, capital city adjustments are approximately as follows:

Sydney 0%
Melbourne -1%
Brisbane +4%
Perth +5%
Hobart 0%
Adelaide 0%
Rural areas +5 – 15% depending on distance from major cities

Total Cost Structure

The approximate cost structure of new homes and renovations is as follows:

Materials 40%
Labour 30%
GST, taxes, fees, permits 20%
Builder’s profit margin 10%

Owner Builders

For people considering being owner builders, savings can be made in labour costs and builders’ profit margin, although plumbing and electrical work must be carried out by a licensed contractor.

Owner builders may not obtain the same trade discounts as builders so a premium of 5% to 10% on materials may apply.

Owner builders must be registered and will need to pay Homeowners Warranty Insurance.

Home Safety

CKA Group is committed to making all Australian homes safer by design. Refer to the Do-It-Yourself Home Inspection Checklist. The items listed in the Home Safety Design section of this checklist will add little to no cost to your home improvement project, but they will make your home far safer for your family, visitors, tradespeople and future owners of your home.

A successful home improvement or renovation should provide owners with a tax-free capital investment over time, as well as an appealing, safe, energy-efficient and functional home to be enjoyed for many years.