The Cost of Renovations & Extensions in Melbourne’s Inner North

As you stroll through Brunswick’s leafy streets, the architecture tells a story of time. Weatherboard cottages and Victorian terraces stand as cherished history, but beneath their charm lies untapped opportunity: transforming them into light-filled, energy-smart homes that honour their past and flourish into the future.

At Terra, we create this balance with design that is beautiful, sustainable, and originally yours. But there's always the big question at the start:

How much is my project going to cost?

The truth is, every home is unique, and the real value of a renovation isn’t just in the square metres, it’s in transforming your space into a light-filled, energy-smart home that honours its past while thriving into the future. Here's a quick guide of what to expect when planning a renovation and/or extension of your home and why a bespoke design and Energy Efficiency matter, not only for your own comfort but also for the future value of the house.


What It Typically Costs (But Feels Worth It)

Every renovation or extension is unique, but here’s a guide to help you plan:

  • Ground floor extensions: AUD 3,500–6,500/m²

  • Second storey additions: AUD 4,500–7,500/m²

  • Internal renovations: AUD 2,000–3,000/m²

  • Kitchens: AUD 20,000–60,000+

  • Bathrooms: AUD 25,000–40,000+

Remember to budget for:

  • Professional fees: 10–20%

  • Council permits

  • Contingency: 10–20%, especially for heritage sites

The figures above are indicative only and represent an average for residential extensions and renovations in this area but can become easily higher depending on architectural features and level of finishes. Engaging a builder early in the process can help to control the costs and make sure budget expectations are met.


Why Terra’s Design Delivers More Than Space

1. Architectural Quality Equals Financial Growth

Architect-designed renovations in Melbourne outperform standard renovations, adding around AUD 256,000 extra in value over 10 years for an average home, or $11.40 for every $1 spent on design fees.

2. Energy Efficiency Commands a Premium

Homes with energy-efficient features in Melbourne sell for 23.8% more (allhomes.com.au).

3. Passivhaus as the Gold Standard in Performance

Adopting Passivhaus standards may carry a 10% premium per square metre, but the value lies in unmatched comfort, long-term energy savings, and growing buyer recognition.
European data suggests properly built Passivhaus homes attract a 3–7% resale premium, with early indications showing similar trends in Australia (ecoarkdesign.com).


Putting It All Together: Value in Focus

Your investment is not just in square metres. It is in transformed living, enhanced comfort, and future value.

Example: 80 m² ground floor extension

Item Cost
Base cost (80 m² × AUD 5,000) AUD 400,000
Professional fees (~15%) AUD 60,000
Permits + contingency (~15%) AUD 60,000
Total ~AUD 520,000

Why Terra Is Your Perfect Partner

At Terra, every home tells a story of heritage, warmth, and future readiness. Our design philosophy is grounded in:

  • Contextual Intelligence – deep knowledge of inner north nuances

  • Human-Centred Design – homes tailored to how you live

  • Sustainable Precision – materiality, orientation, and detailing that endure and perform


Ready to Transform Your Home?

Discover how thoughtfully crafted, energy-smart design can elevate your home and its value.

Visit www.weareterra.com.au to explore our ethos, process, and past transformations.

Let us design a home that is as smart as it is soulful, beautiful today and invaluable tomorrow.

Let’s build spaces that matter. GET IN TOUCH.

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