Perth homeowners balk at soaring renovation costs before selling

Renovation budgets in Perth have exploded, forcing owners who once relied on a fix-up-and-flip strategy to question whether major makeovers will pay off before selling, according to Richard Young, principal of Caporn Young Estate Agents, who told the Western Suburbs Weekly that the cost to renovate is very high and renovating the wrong kind of property risks money down the drain.

That warning echoes the experience of Vivien Yap, director of Ray White Dalkeith and Claremont, who notes that premium-priced suburbs still reward well-executed upgrades, but only when the underlying land value and location are strong. Yap cited a property on Hotchin Street in Dalkeith that sold at auction for $4.601 million—surpassing the reserve by $500,000—after a beautiful renovation that preserved the home's character feel.

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Yet Yap cautions that renovations can be expensive, meaning each property must be evaluated individually based on its features, location, and street. According to interior designer Tamlin Prince, owner and principal designer at Prince Design, homeowners planning resale upgrades face specific cost tiers in Perth. A straightforward new kitchen with an unchanged layout typically ranges from $35,000 to $45,000, excluding appliances, while a custom kitchen with premium finishes and significant layout changes costs between $60,000 and $100,000 or more. Meanwhile, a standard bathroom renovation runs between $30,000 and $40,000, whereas premium bathrooms featuring custom cabinetry, tiles, and moved plumbing can start climbing past $40,000.

Prince stresses that finishes must align with buyer expectations and the likely sale price in a given suburb, warning that many renovators overlook building, plumbing, or waterproofing contingencies. Location and structural integrity often outweigh extensive cosmetic changes. On Bedford Street in East Fremantle, an original-condition 1920s character home featuring wide jarrah floorboards, sash windows, high ceilings, stained glass, and fireplaces drew 46 buyer groups when offered as-is. Young points out that fully renovated houses in the area typically attract only eight to 10 groups, demonstrating that good bones can trump renovation, particularly when buyers intend to live in the home rather than flip it.

Property considerations extend far beyond Australian borders. In Salmon, Idaho, owner-builder Kristie Wolfe listed a three-story waterfront retreat known as the Shipwreck House for $799,000. Wolfe told the Wall Street Journal that designing the 1,200-square-foot, two-bedroom, three-bath house to resemble a pirate ship required walking the line between immersive and cheesy. While quirky properties can generate strong media attention, word-of-mouth, and short-term rental income, Redfin head of economics research Chen Zhao warns that resale remains the biggest challenge due to a smaller pool of interested buyers and higher specialty maintenance costs. Realtor.com senior economist Hannah Jones similarly notes that unique properties may face financing and insurance hurdles because appraisers struggle to find comparable sales.

In municipal developments, the Blue Earth City Council discussed a potential purchase agreement for a property at 716 East Third Street during a July 20, 2026 meeting. Candace Pierson informed the council that her family had been in contact with an Albert Lea-based developer interested in renovating the house. City attorney David Frundt confirmed the developer's background in local redevelopment projects, while mayor Rick Scholtes requested a signed plan from the developer before drafting a purchase agreement.