Full-Scale Home Renovation in Victoria – 2025 Insights & Tips

Home Renovation in Victoria functional-modern-white-kitchen-with-stainless

Whether you’re upgrading a recently purchased property or revamping your long-time home, a whole-house renovation requires careful planning. Based on 2025 renovation trends in Victoria, here’s what to know before you begin — room by room.

Key Context: 2025 Home Renovation in Victoria

Renovation & Buying Existing Homes

  • Government encourages renovation: Planning reforms and sustainability incentives are making it easier to upgrade older homes.
  • Renovation trend surging: Many Victorians are opting to buy older properties and invest in energy-efficient retrofits, smart home upgrades, and layout modifications to suit hybrid work/family needs.
  • Market stock rising: As new policies incentivise downsizing and apartment developments, more secondhand homes are hitting the market, sometimes below replacement cost.

Falling Interest Rates: How They Impact the Decision

What’s happening:

  • The RBA has started gradually cutting interest rates in mid-2025 due to stabilising inflation and slower economic growth.

  • Borrowing costs are easing, making mortgages more affordable.

1. Living Room Renovation

What to Consider:

  • Lighting: Upgrade to layered lighting — mix ambient, task, and accent lights.

  • Wall materials: Many opt for textured paint or feature timber panels in 2025.

  • Insulation & windows: Retrofitting insulation or switching to double-glazed windows can improve comfort and efficiency.

Potential Issues:

  • Hidden wiring or outdated cabling behind walls may need to be upgraded to meet code.

  • Floor re-levelling is often overlooked and can add surprise costs.

Estimated Cost (Victoria, 2025):

  • Basic upgrade: $8,000–$15,000

  • High-end redesign (incl. insulation & windows): $20,000–$35,000

2. Bedroom Renovation

What to Consider:

  • Storage: Built-in wardrobes or walk-in robes remain popular.

  • Noise reduction: Use acoustic plasterboard or soft furnishings to enhance rest quality.

  • Smart tech: Smart blinds, lighting, or integrated air con can improve sleep environments.

Potential Issues:

  • Asbestos in older homes (especially in ceilings or behind built-ins) must be professionally handled.

  • Limited ceiling height may restrict fan or air-con installations.

Estimated Cost:

  • Standard renovation: $6,000–$12,000

  • Luxury suite conversion (with ensuite): $30,000–$50,000+

3. Dining Room & Kitchen Flow

What to Consider:

  • Open-plan conversions are very popular in 2025 — combining dining with living or kitchen.

  • Built-in banquet seating or kitchen islands with breakfast bars are trending.

  • Ventilation & ducting are important, especially in older homes.

Potential Issues:

  • Removing internal walls may require structural beams — engineering reports and permits will be needed.

  • Matching existing flooring (if partial reno) can be difficult and costly.

Estimated Cost:

  • Dining room refresh: $5,000–$10,000

  • Kitchen & dining full redesign: $40,000–$80,000+

4. Outdoor Area / Alfresco Upgrade

What to Consider:

  • Pergolas and covered decks are in demand for year-round entertaining.

  • Outdoor kitchens (with sink, fridge, BBQ) are popular in metro Melbourne suburbs.

  • Low-maintenance landscaping: native plants, composite decking, artificial turf.

Potential Issues:

  • Drainage and stormwater compliance — especially in older homes.

  • Bushfire-prone zones may require BAL-rated materials, increasing cost.

Estimated Cost:

  • Basic deck/pergola: $10,000–$20,000

  • Fully equipped alfresco kitchen + landscaping: $30,000–$60,000+

Common Home Renovation in Victoria (2025)

Issue Prevention Tip
Delays due to permit approval Check local council timelines and plan 3–6 months ahead.
Scope creep Finalise your design before demolition; lock in budget buffers of at least 15–20%.
Contractor shortages Book trades 3+ months in advance; check builder registration on VBA database.
Blowout in materials cost Use fixed-price contracts where possible; source materials early.
Living disruption Consider temporary accommodation if renovating >50% of your home.

Overall Renovation Budget Guidelines (Victoria, 2025)

Property Size Light Cosmetic Reno Full Renovation
2–bedroom unit $30,000–$60,000 $80,000–$120,000
3–bedroom house $50,000–$90,000 $120,000–$180,000
4+ bedroom family home $80,000–$150,000 $200,000–$300,000+

Note: Prices vary depending on materials, design, and location (inner suburbs vs regional).

5J Building understands that a successful renovation is about combining solid planning, clear communication, and high-quality craftsmanship.

The more informed you are, the better your results will be. And remember, your builder should be a partner, not just a service provider.

Reach out to 5J Building for transparent advice, efficient designs, and a smooth building experience from start to finish.

Need help? Call 5J Building Group on (03) 9886 3731 or request an Instant Quote Online.