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AE INDEX
Melbourne Renovation Cost Index

Renovation costs
by suburb

Eighteen Melbourne suburbs, each written separately. Ranges are for a typical local project, so they are not directly comparable — a Fitzroy figure buys 30 square metres and a Brighton figure buys 55. That is the point.

Inner north

Inner city and south

Inner east

Bayside and west

Reading the differences

Northcote and Fitzroy show the same headline range, but the Northcote figure buys 40 square metres and the Fitzroy figure buys 30. That gap is the clearest illustration of the point this whole index exists to make: on a constrained inner-city site you are paying for delivery, not floor area.

The premium eastern suburbs read as expensive, and they are — but not for the reason most people assume. Building in Hawthorn does not cost more per square metre because of the postcode. It costs more because the houses are larger, the finish is specified higher, and heritage coverage adds design time. Our location adjustment reflects site constraint and labour rates, not what the street is worth.

Compare Balwyn with Albert Park. Balwyn has flat blocks, machinery access, sound interwar footings and light heritage coverage. Albert Park has none of those things. The land in Albert Park is worth more; the building conditions are worse. Those are separate facts, and only one of them is in your build cost.

The Fitzroy to Preston spread runs to roughly $130,000 on the same 40 square metre extension. Almost none of that is land value. It is building era, site access and heritage coverage — three things you can check before you buy, and three things nobody mentions at an inspection.

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The estimator covers all of Melbourne

Inner, middle-ring and outer bands are all built in. Eight questions and you will see your own range.

Last updated 28 July 2026

AE Index publishes indicative cost data for Melbourne residential renovation. Estimates are budget-setting figures, not quotes. Square-metre rates are drawn from the Archicentre Australia CostGuide 2026 and are GST inclusive. AE Index refers projects to a builder from its verified network and receives a fee on work that proceeds.