How Much Does Renovating ACTUALLY Cost In 2025?
In This Week’s How's The Market | Edition 115
How Much Does Renovating ACTUALLY Cost In 2025?
Marcus Martin Brilliance on a Breathtaking Family Estate
Auction Activity Surges Ahead of King’s Birthday Long Weekend
How Much Does Renovating ACTUALLY Cost In 2025?
This week for the podcast we spoke with Thisara Arachchige who is the director of DSR Renovations.
He has helped lots of our clients with renovations over the past few years and manages up to 70 trades to help with renovations of all sizes.
We got him on to ask him how the renovations and construction industry has changed in his eyes since Covid and ask how much renovations actually cost now in 2025 for the big ticket items around the home.
You can listen to the full episode on Spotify by typing in How’s The Market, though here are some of the key takeaways from the episode.
Before the pandemic, getting a construction or renovation quote was relatively straightforward.
Fast forward to today, and the landscape has shifted dramatically.
I remember when a client recently shared their shock after receiving a quote that used to seem reasonable now looked like a completely different ballgame. Prices for materials have jumped anywhere from 20% to even 50%, depending on the project.
Labor rates? They’ve risen too, with skilled tradespeople now charging $110 to $120 per hour, a reflection of the scarcity of qualified workers in the sector.
It’s not just about higher numbers; it’s about the ripple effects behind the scenes.
Supply chains have been stretched thin, logistics costs have surged by up to 50%, and suppliers themselves are raising prices sometimes without customers even realizing why.
Many are still thinking in pre-COVID terms, unaware of how trade embargoes, global tensions, and market volatility are pushing costs higher every week.
Take plumbing supplies, for example. Just last month, some suppliers reported price hikes of around 10%, adding another layer of complexity for contractors trying to stay competitive.
So, what does this mean for customers and contractors alike?
Transparency and communication are more important than ever. Contractors need to balance fair pricing with the realities of today’s market keeping clients informed, setting expectations clearly, and continuously adapting to rapid changes.
The construction industry might look different now, but with thoughtful strategies and open dialogue, we can navigate these challenges together building trust, one project at a time.
What The Agents Are Saying
There were two huge auction weekends the last two weeks.
Both with reasonably strong clearance rates of 56.4% & 56.3% respectively according to SQM.
Agents this week have mentioned that activity is definitely picking up from buyers, but not as quickly from sellers.
Low stock still persists and agents have been consistent in mentioning that the bottom end of the market is the strongest performing sector.
The Wow Factor!
5 Tyalla Crescent, Toorak, Vic 3142
Secluded and grand, this Marcus Martin masterpiece blends timeless design with estate elegance.
A rare family home where architectural vision meets heritage charm.
Positioned in one of Melbourne’s most distinguished addresses.
Price guide: $15,000,000 – $15,900,000
In The Media
Auction Activity Surges Ahead of King’s Birthday Long Weekend
Auction numbers are picking up across Australia’s capital cities this week, with 2,816 homes set to go under the hammer — up
from 2,460 last week and 2,380 around this time last year. If everything goes ahead as planned, it’ll be the third busiest auction week of 2025 so far.
Next week, things will slow down a bit, with about 1,300 homes expected to be auctioned as most states take a break for the King’s Birthday long weekend.
Looking closer at Melbourne, there are 1,371 homes scheduled for auction this week, making it the fourth busiest week of the year.
That’s up from 1,223 last week and 1,109 this time last year — showing the market’s still buzzing.
Final Thoughts
In Melbourne’s competitive market, savvy buyers who can envision potential and aren’t afraid to get hands-on are unlocking exceptional value every day.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
