When embarking on a home renovation in Sydney, the two main decisions you need to weigh up are:
- The scale (Quantity) of your project (i.e. how many rooms or areas you want to renovate).
- The quality of fixtures, fittings, materials and finishes you want to use.
Ultimately, if you’re on a set budget, you’ll need to weigh up your Quantity vs Quality opportunity cost, and most likely be ready to make compromises along the way.
The following factors can also impact what you can achieve with your budget:
- If your block is sloping or has difficult access.
- The condition of your existing home (i.e. whether any structural integrity or repair work is required before you can get to the “fun” stuff).
- Any heritage restrictions or guidelines that need to be adhered to.
A Question of Quantity – How Much Can You Do?
The Australian Bureau of Statistics has confirmed that construction costs have risen by over 30% since December 2019, however we are now entering a more stable period, particularly where material prices are concerned.
To support your planning, MILEHAM has updated our annual Renovation Budget Guide for 2025, outlining how much your budget can generally stretch at the most commonly used home renovation budget brackets. While every project is unique, this Sydney Renovation Guide provides an excellent starting point. The budget ranges below assume mid-range quality fixtures, fittings, materials and finishes based on recent MILEHAM construction projects across Sydney’s North Shore, Northern Beaches and Eastern Suburbs.
Budget: Sub-$500,000
With a budget of under $500,000 in Sydney, you can generally complete a full cosmetic refresh of your existing home. In most cases, because you are not changing the building footprint, you won’t require planning approvals, resulting in a faster project timeline and often allowing you to remain living in your home during construction.
If you have an older home with “good bones” and a practical layout, a renovation can completely transform the space. For example, you could install a brand-new kitchen, renovate two bathrooms, replace flooring, upgrade fixtures, fittings and appliances, and repaint the entire home, significantly increasing both its appeal and value.
Budget: $500,000 – $750,000
As your budget moves beyond $500,000, you can begin considering a more comprehensive renovation with internal structural alterations or a relatively straightforward extension.
This is typically the point where involving professional architects and builders becomes essential, as planning approvals are more likely to be required and expert design advice will help maximise both your vision and your budget.
Budget: $750,000 – $1.2 Million
If you’re looking to increase the footprint of your home by adding extra living space to your ground floor (for example, a new open-plan living, kitchen and dining extension on a Californian bungalow) or adding a second storey, your budget should begin around $750,000–$800,000. This assumes your existing home is structurally sound and located on a relatively flat, easily accessible block.
If you’re planning a major extension or full second-storey addition including a master suite, two additional bedrooms and a family bathroom, budgets generally begin around $1 million. At this stage you will most likely need to move out while construction is underway.
Budget: $1.2 Million+
Assuming you have a mostly flat and easily accessible site, a budget starting at $1.2 million allows for major additions or extensions alongside a complete cosmetic renovation. Second-storey additions typically cost around 30% more than ground-floor extensions due to additional structural requirements but can significantly increase your home’s value.
If your block has steep gradients or difficult site access, you may need to reduce the project scope to accommodate increased construction costs.
Budget: $1.8 Million+
For homeowners across Sydney’s North Shore or Northern Beaches considering a complete knockdown and architecturally designed rebuild, budgets generally start from approximately $1.8 million for a smaller four-bedroom, two-bathroom home.
If you’re planning a larger four or five-bedroom architect-designed residence featuring multiple living areas and premium finishes, you should allow a starting budget of approximately $2.5 million.
The Quality Equation – How Premium Do You Want to Go?
Before undertaking any renovation project, it’s important to consider the quality of the fixtures, fittings, finishes and materials you intend to use. A skilled Architect can advise where to invest and where to save, helping achieve the ideal balance between luxury, style and budget.
“We help our clients find the right balance between the magazine wow factor and everyday living practicality, aligning their vision with their budget. Some clients arrive with a clear aesthetic vision, while others simply know they need more space. Whatever your starting point, we help achieve the right balance between beauty and practicality—because there’s only pain ahead if you install expensive white carpet before bringing home young children and a puppy!”
— James Pilcher, Founder, Director and Principal Architect, MILEHAM Architects + Builders.
Here’s a quick overview of the quality levels you can expect across various renovation budgets.
So How Should You Go About It?
Balancing cosmetic improvements, structural changes, quality expectations and available budget is both an art and a science. What begins as a simple Pinterest mood board can quickly become overwhelming. Working alongside an experienced Architect and Builder removes the uncertainty and helps create the most effective solution for both your lifestyle and your budget.
As a full-service Registered Architect and Licensed Master Builder with all construction quotes prepared in-house, MILEHAM has extensive knowledge of current design, planning and construction costs, together with the materials best suited to different durability, practicality and aesthetic requirements. To discover how to align your renovation budget with your dream home, book your Discovery Call with MILEHAM today.
