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Melbourne House Renovation: Should You Renovate Before Selling in 2025?

With Melbourne’s property prices climbing again in late 2025 — fuelled by the government’s new 5% Deposit Scheme — many homeowners are asking the same question about Melbourne House Renovation :

“Is it worth spending money on renovating before I sell?”

In most cases, yes — if done strategically.
A well-planned Melbourne House Renovation can significantly increase buyer appeal, shorten selling time, and deliver a higher sale price, especially in today’s competitive market. However, success depends on smart budgeting, design choices that match your suburb, and professional project management.

What’s Driving the Current Market

From 1 October 2025, the expanded First Home Guarantee (5% Deposit Scheme) allows more Australians to buy homes with just a 5% deposit and no LMI (lenders’ mortgage insurance).

  • Income caps have been lifted, and

  • Price limits increased — now up to $950,000 for Melbourne and Geelong.

For a median-priced Melbourne home (~$803,000), the required deposit drops from roughly $160,000 to $40,000. This change has opened the door to thousands of new buyers and, according to early reports, pushed prices up across many suburbs.

More buyers with small deposits means greater competition for move-in-ready homes — properties that require little to no post-purchase work. That’s exactly why pre-sale renovation has become such a hot topic for Melbourne homeowners.

Why Renovating Before You Sell Can Pay Off

Renovating before you sell can give you a clear competitive edge in this new market climate:

  • Higher buyer appeal: Updated interiors attract more online interest and emotional connection.

  • Faster sales: Homes that look new often sell quicker and with fewer conditions.

  • Stronger price outcomes: Buyers are willing to pay a premium for modern kitchens, bathrooms, and finishes.

Industry data from Melbourne renovation specialists shows that targeted updates can add $50,000 – $150,000 in value, depending on suburb and project scale.
The most profitable areas remain kitchens, bathrooms, flooring, and exterior appeal.

But It’s Not Always Worth It

Not every project leads to profit. Common pitfalls include:

  • Overcapitalising: Spending more than buyers in your area are prepared to pay.

  • Ignoring suburb standards: Over-luxury finishes in mid-range suburbs rarely pay off.

  • Poor project control: Delays and cost overruns can erode margins.

  • Market timing: If demand softens, you might not recoup full renovation costs.

The key is to align your budget and design choices with your suburb’s buyer expectations — and ensure the work is completed efficiently.

Quick Checklist: Should You Renovate?

Consideration What to Ask Why It Matters
Neighbourhood standards Are nearby homes more modern or updated? Renovation helps you stay competitive.
Price ceiling What’s the max price buyers will pay in your suburb? Avoid overspending.
Return on investment Can your upgrade deliver at least 10–20% value gain? Keep projects cost-effective.
Timeline Can you complete the work before your ideal selling window? Time delays can hurt profit.
Buyer type Are you targeting first-home buyers or investors? Tailor design to your audience.

The 5% Deposit Scheme Effect

The 5% Deposit Scheme is expected to keep Melbourne’s housing market active throughout 2025 – 26.
First-home buyers with limited savings will continue to prioritise modern, low-maintenance homes, avoiding properties that require renovation.

That means sellers who present a freshly renovated property are far more likely to capture strong buyer interest — and better offers.

Partner with 5J Building Group for a Smart, Value-Driven Renovation

If you’re considering a Melbourne house renovation before selling, it’s essential to work with a team that understands both construction and resale value.

5J Building Group offers a complete, one-stop renovation service — from design planning and permits to construction, finishes, and final handover.

Why choose 5J Building Group:

  • Tailored renovation packages for every budget

  • Market-aware design that appeals to local buyers

  • Transparent pricing and clear project timelines

  • Experienced trades and quality craftsmanship

Whether you need a quick cosmetic upgrade or a full transformation, 5J Building Group helps you boost your home’s appeal, maximise your sale price, and sell with confidence.

At 5J Building Group, we see these changes as an opportunity to deliver smarter, safer and more future-proof homes. If you’re planning a renovation or new build, now is the time to talk with a builder who can guide you through the shifting landscape.

For personalised consultations or to discuss your next Melbourne home renovation, contact us today at (03) 9886 3731. Let’s bring your vision to life! or request an Instant Quote Online.