Determining the return on investment (ROI) for renovations involves assessing how much value improvements add to your property relative to their cost, and is a common consideration for Melbourne homeowners preparing to sell.
As of December 2025, the Melbourne property market favours well-presented homes, particularly in the Eastern Suburbs where family appeal is strong. While a full-scale renovation isn’t always necessary, strategic updates often yield a favourable return. Currently in Melbourne, cosmetic improvements like painting (typically $400-$800 per room) and professional styling ($2,000-$8,000) consistently demonstrate a good ROI, enhancing presentation and attracting buyers. Kitchen and bathroom updates can yield higher returns, but costs are significantly greater. In 2026, buyers continue to prioritise light-filled spaces and renovation potential, meaning even minor updates can increase perceived value. It’s important to note that over-capitalising is a risk; a luxurious renovation in a suburb where the median dwelling value is $823,495 (as of December 2025) may not recoup its full cost. Fletchers’ appraisal process considers local market data and buyer preferences to advise on renovations likely to maximise your sale price. The typical sales campaign duration is 4-6 weeks, allowing time for buyers to assess the property and its potential.
Ultimately, the ROI on renovations is highly dependent on the specific property, the scope of work, and current market conditions, emphasising the importance of a tailored approach.