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 CKA Group with Rodney Vapp and Associates Quantity Surveyors and is a guide to help prospective renovators estimate the likely value of intended renovations.

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

Note The building industry appears to have stabilised following its crisis period of materials shortages, supply chain problems and labour shortages which added approximately 20% to the cost of building between 2021 and 2023.  This created stresses for both builders and clients with an unprecedented number of failures of building companies.  The last twelve months, however, have seen a slowing down and levelling of building costs.

2024 may see a longer period of price stability which will hopefully provide a much more predictable environment for builders and clients alike.

Renovation Calculation Guidelines

Renovation and extension costs can be estimated by the following process:

1. Calculate the structural cost of new construction on a square metre basis.
2. Calculate the fitout cost of kitchen, bathrooms and laundries and add these to the structural cost.
3. 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.
4. Calculate the cost of decks, verandas, garages, carports, etc.
5. Calculate GST and Professional Fees

1. Calculate the structural cost of new construction on a square metre basis.
2. Calculate the fitout cost of kitchen, bathrooms and laundries and add these to the structural cost.
3. 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.
4. Calculate the cost of decks, verandas, garages, carports, etc.
5. Calculate GST and Professional Fees

Structural Costs of new construction (per sq.m)

Standard Home
Typical brick veneer or timber extension.
Under 30m²	$2,510 – $3,760 / m²
Over 30m²	$1,670 – $2,510/ m²
Quality Home
Timber or brick veneer extension with design feature walls, bay windows.
Under 30m²	$3,340 – $4,630 / m²
Over 30m²	$2,220 – $3,360 / m²
Luxury Home
Timber or brick veneer extension with high ceilings, quality wall and floor finishes.
Under 30m²	$5,000 – $5,990 / m²
Over 30m²	$3,310 – $5,430 / m²

Fitout Costs

Kitchen
Standard Kitchen	$14,360 – $19,760
Quality Kitchen	$22,200 – $35,590
Luxury Kitchen	$33,230 – $50,900
Bathroom
Standard Bathroom	$13,360 – $22,810
Quality Bathroom	$20,640 – $32,150
Luxury Bathroom	$31,990 – $50,360
Ensuite
Standard Ensuite	$8,490 – $13,090
Quality Ensuite	$15,020 – $21,290
Luxury Ensuite	$22,540 – $34,090
Laundry
Standard – Luxury	$6,000 – $22,680
Powder Room
Standard – Luxury	$6,550 – $21,560

 

Existing House Upgrades 150sq.m to 240sq.m

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- $6960
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

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 condition, slope of 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 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:

• Melbourne -1%
• Brisbane +4% 
• Adelaide 0%
• Perth +5%
• Hobart 0%
• Rural areas +5% to 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%
• Builders profit margin 10%

Owner Builders

For people considering being owner builders, savings may be made in labour costs and builders’ profit margin, although plumbing and electrical work must always be done by licensed contractors.

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

Home Safety

CKA Group is committed to making all Australian homes safer by design. Refer to the Home Improvement checklist. The items listed in the Home Safety Design part of this checklist will add little or 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.

If you are considering renovating your home, contact the team at CKA Group to discuss your project.

 

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