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A house renovation cost can vary widely and depend upon: the size and condition of the house, the scope of the work being done, the materials and products being used, and the location of the property. 

Some common factors that can affect the cost of a house renovation cost or home addition cost include:

The type of renovation being done

Major renovations that involve structural changes or the addition of new rooms or features will generally be more expensive than cosmetic updates or minor repairs. Any renovation which involves either expanding horizontal or vertically will have an impact on the building structure. An engineer would need to be engaged to ensure of existing foundations, slabs and framing would be able to support the additional structure, and what additional structural member would be required. 

In addition, a substantial renovation may require the whole house to be upgraded to current building regulations and comply with local planning requirements (BAL fire zone rating, BASIX, etc). This would also add to the total cost of the renovation.

The condition of the house 

Renovating a house that is in good condition will generally be less expensive than one that needs significant repairs or updates. Older properties may have unknown or unforeseen issues such hidden damage cause by water egress, wear and tear, hazardous material such as asbestos and lead paint, non-compliance with current building codes and standard.

The materials and products being used

The cost of materials and products can vary significantly, and using higher-quality or more expensive materials can increase the overall cost of the renovation. Material supply costs may fluctuate depending on the state of the economy and supply / demand effects. Costs of some imported items may increase due to supply chain issues. It is recommended that owners keep an open mind with material selections and have alternatives selected. 

The location of the property

Renovation costs can vary depending on the region or location of the property. Site accessibility, material handling and parking issues for contractors and deliveries may increase costs as well as confined sites where installing materials may be challenging and requiring cranes or other manual handling may have an impact on cost (and time).

The availability of labour / contractors in your region

Some areas of Australia are currently experiencing a shortage of builders, tradespeople and labourers. Similarly with the supply of materials, a shortage of labour may increase the cost of your renovations as builders increase margins or select lower cost-risk projects. In addition, owners may have to wait considerable time for builders to become available to work on their project.

So how much does a renovation cost?

Without a specific design solution and knowing the specifics of your project, a precise estimate for the renovation is difficult to estimate. As a general rule however, it is a good idea to budget at least $1,200 per m2 for a major renovation, with the cost potentially rising to $3,500 per m2 or more for high-end projects.

CPP Quantity Surveyors have significant experience in preparing cost estimates for both renovations and new build/knock-down rebuild projects. Contact us to see if we can assist in provided a more accurate estimate of what your renovation cost may be.

By Gary Uys, Director & Founder, CPP Quantity Surveyors