Determining a precise average return on renovation is complex, as it’s heavily influenced by the scope of work, property location, and current market conditions. As of December 2025, Melbourne’s property market is experiencing moderate growth, meaning renovation returns are generally positive, but require careful consideration.
Currently in Melbourne, particularly within the Eastern Suburbs – Fletchers’ core area – buyers strongly favour properties that present well and offer either a move-in ready solution or clear renovation potential. Cosmetic updates like painting (typically $400-$800 per room) and professional styling ($2,000-$8,000) often yield the highest return, enhancing appeal and potentially adding 5-10% to the sale price. Larger renovations, such as kitchen or bathroom upgrades, can increase value further, but the return isn’t always dollar-for-dollar. In 2026, we’re seeing buyers in areas like Balwyn and Doncaster prioritise light-filled spaces and functional layouts. A well-executed renovation addressing these elements is more likely to resonate. It’s important to realise that over-capitalising is a risk; a thorough property appraisal from a local expert, like those at Fletchers, is crucial to understand what improvements will genuinely add value in your specific location. The typical sales process in Melbourne, involving a 4-6 week campaign, means timing renovations to completion before marketing is vital.
Ultimately, renovation return is a nuanced calculation, and a strategic approach, informed by local market expertise, is key to maximising your property’s sale potential.