18 suburbs
Melbourne renovation
costs compared
Eighteen suburbs, one table. The spread runs from about $235,000 in Preston to $430,000 in Brighton for a typical rear extension — and almost none of that difference is land value.
Rear extension, by suburb
Each range is a typical local project, which means the floor area differs. That is deliberate — comparing a Fitzroy terrace to a Brighton family home on identical square metres would tell you nothing useful about either.
| Suburb | Region | Typical size | Indicative range |
|---|---|---|---|
| Northcote 3070 | Inner north | 40 m² | $285k – $385k |
| Brunswick 3056 | Inner north | 45 m² | $330k – $445k |
| Thornbury 3071 | Inner north | 40 m² | $275k – $370k |
| Preston 3072 | Inner north | 40 m² | $235k – $320k |
| Coburg 3058 | Inner north | 40 m² | $255k – $345k |
| Fitzroy 3065 | Inner city | 30 m² | $285k – $385k |
| Richmond 3121 | Inner city | 35 m² | $310k – $415k |
| Albert Park 3206 | Inner south | 35 m² | $320k – $430k |
| Armadale 3143 | Inner south | 40 m² | $335k – $455k |
| Elwood 3184 | Bayside | 45 m² | $350k – $470k |
| Hawthorn 3122 | Inner east | 50 m² | $355k – $480k |
| Kew 3101 | Inner east | 50 m² | $370k – $500k |
| Camberwell 3124 | Inner east | 50 m² | $335k – $455k |
| Balwyn 3103 | Inner east | 50 m² | $295k – $400k |
| Malvern 3144 | Inner east | 50 m² | $355k – $480k |
| Brighton 3186 | Bayside | 55 m² | $410k – $555k |
| Essendon 3040 | North west | 50 m² | $355k – $480k |
| Williamstown 3016 | West | 40 m² | $335k – $455k |
Rates: Archicentre Australia CostGuide 2026 · GST inclusive
Site adjustments: AE Index · All figures include professional fees, permits and contingency
What the table actually shows
Land value is not build cost
Albert Park land is worth multiples of Preston land. The build cost gap is far smaller, and it runs on site constraint rather than postcode. Expensive suburbs are expensive to buy into, not necessarily to build in.
Building era does most of the work
Pre-1940 stock carries roughly $26,000 of restumping, rewiring and re-plumbing before anything is added. Post-war construction usually carries none. That single factor separates Preston from Northcote.
Access is the hidden multiplier
Whether a truck can reach the rear of your block is worth 7 to 15% of the build. It is rarely itemised in a quote and never in a published rate, and it is the reason constrained inner-city sites cost what they do.
Heritage costs time more than money
Around 15% on construction, but three to six months on approval. On a project you may be renting through, the time is usually the bigger number.
The comparison worth making
Preston and Albert Park sit at opposite ends of this table. Preston has post-war brick veneer on a wide flat block with driveway access and no heritage overlay. Albert Park has a Victorian terrace on a small allotment with no vehicle access, party walls and near-total heritage coverage.
The Albert Park land is worth several times the Preston land. The building conditions are considerably worse. Those are two separate facts, and only one of them appears in your construction budget — which is why the same brief costs meaningfully more to deliver in one than the other.
How to use this
As a sanity check, not a quote. If you are buying with renovation in mind, the four factors above are all knowable before you bid — building era from the listing, access from the inspection, heritage and overlays from the planning property report. Checking them costs nothing and changes what a property is actually worth to you.
Compare on your own inputs
The estimator runs identical assumptions across every suburb, so you can compare properly rather than by typical project.
Common questions
Which Melbourne suburb is cheapest to renovate in?
Of the suburbs in this index, Preston has the lowest typical range at roughly $235,000 to $320,000 for a rear extension. Post-war brick veneer construction, wide flat blocks with vehicle access, and limited heritage coverage all reduce cost independently of land value.
Why do renovation costs vary so much between Melbourne suburbs?
Four factors do most of the work: building era, site access, heritage overlay coverage, and typical finish level. Land value is not among them — an expensive suburb is expensive to buy into, which is a separate question from what it costs to build there.
Do expensive suburbs cost more per square metre to build in?
Somewhat, through higher labour rates and tighter sites, but far less than people assume. The larger driver in premium suburbs is that projects are bigger and specified to a higher finish. Finish level alone can nearly double a square-metre rate.
Can I compare these ranges directly?
Not as like-for-like figures, because each reflects a typical local project and the floor areas differ. Use the estimator for a comparison on identical inputs.
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