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AE INDEX
Melbourne Renovation Cost Index
Cost guide
Timelines

How long does a
renovation actually
take in Melbourne?

Twelve to twenty-four months from first conversation to handover for a typical extension. Construction is usually the shorter half. Most of the time — and almost all of the slippage — happens before anyone picks up a tool.

The phases

PhaseWhat happensTypical
DesignConcept, developed design, documentation3 – 6 months
Planning approvalOnly if required — longer with heritage or objections3 – 9 months
Building permitPrivate building surveyor, after planning is resolved3 – 8 weeks
Tender and contractQuotes, comparison, negotiation, signing4 – 10 weeks
Construction — ground-floor extension40 to 50 m², standard complexity4 – 7 months
Construction — second storeyRoof off, structural upgrade, weather risk6 – 9 months
Construction — full renovationWhole house, services replaced7 – 12 months

Where programs actually slip

Planning, by a distance

The single biggest source of delay, and the one least within anyone's control. Heritage assessment and neighbour objections both add months. Budget for the long end, not the short.

Client decisions

Unglamorous but real. Selections not made on time — tiles, tapware, joinery — stop trades and lose their place in the builder's schedule. Decide early and stick to it.

Variations mid-build

Every change re-prices and re-sequences. A change that seems small at the drawing stage is expensive and slow once framing is up.

Weather on open structures

Second-storey work with the roof off is exposed. A wet fortnight in a Melbourne winter is not a delay anyone can price out.

What it costs you to be slow

Time is a budget line even when nobody invoices for it. If you move out, you are paying rent and a mortgage simultaneously. Construction costs escalate over a long design phase — a project designed in one year and built two years later is being built at different prices. And storage, temporary accommodation and double moves are excluded from every cost guide, including ours.

The practical implication: the cheapest thing you can do for your budget is resolve the design and the approvals quickly, then not change your mind.

Your project, not an average

Cost first, then timeline

Two minutes for an indicative range — worth knowing before you commit to a twelve-month program.

Common questions

How long does a house extension take in Melbourne?

Twelve to twenty-four months end to end is typical. Design and approvals commonly take six to twelve months, and construction on a 40 to 50 square metre ground-floor extension usually runs four to seven months.

Why does the design phase take so long?

Concept, developed design and construction documentation are separate stages, each requiring client decisions. Planning approval, where required, sits on top and is the least predictable part of the program.

Do I need to move out during a renovation?

For a rear extension, often not. For a second storey or a full renovation with services replaced, usually yes for at least part of the build. Temporary accommodation is excluded from published cost guides and should be budgeted separately.

What is the most common cause of delay?

Planning approval, followed by client decisions on selections. Both are more controllable than weather or trade availability, and both are where most avoidable slippage occurs.

Related

When you are ready to build

AE Index is not a building company. When a project is ready to be priced properly, we pass it to a builder from our verified network — who will walk the site, inspect what is under the floor, and put a fixed price in writing. We are paid a fee by them on work that proceeds, and you are under no obligation to use them.

  • Current domestic builder registration, confirmed with the Victorian Building Authority
  • Domestic building insurance current and sighted
  • Two completed projects contacted directly — not supplied testimonials
  • Fixed-price contracts with a written variations policy
  • Re-checked annually, and removed from the network on any lapse

Last updated 28 July 2026

AE Index publishes indicative cost data for Melbourne residential renovation. Estimates are budget-setting figures, not quotes, and assume a standard site with no undisclosed structural, drainage or contamination issues. Square-metre rates are drawn from the Archicentre Australia CostGuide 2026, an independently published Australian cost guide, and are GST inclusive. Site adjustments are AE Index's own and are labelled wherever they appear. AE Index refers projects to a builder from its verified network and receives a fee on work that proceeds.