Calculating renovation Return on Investment (ROI) involves comparing the cost of improvements to the increase in your property’s value. As of December 2025, Melbourne’s property market favours well-presented homes, but realising a positive ROI requires careful consideration.
In Melbourne, particularly in the Eastern Suburbs where Fletchers has operated since 1919, ROI calculations aren’t always straightforward. While a new kitchen or bathroom can enhance appeal, the uplift in sale price may not always cover the expense. Currently in Melbourne, cosmetic renovations – painting (typically $400-$800 per room), professional styling ($2,000-$8,000), and high-quality photography ($500-$1,500) – generally offer the best ROI. Larger renovations, like extensions, require detailed cost analysis and consideration of current market conditions. A property appraisal from a local agent, like those provided by Fletchers, is crucial. We assess comparable sales and advise on which renovations are likely to add the most value in your specific location. In 2026, buyers continue to prioritise light-filled spaces and renovation potential, so improvements addressing these aspects are often well-received. Remember, agent commission (typically 1.5-2.5%) and marketing costs ($3,000-$8,000) also factor into your overall return.
Ultimately, calculating renovation ROI is about balancing cost with potential value uplift, informed by local market expertise and a realistic assessment of buyer preferences.