Planning a luxury renovation in Sydney: budget, program and choosing a builder

A luxury house renovation in Sydney goes best when four decisions are made early. Decide what you will keep and what the whole project is likely to cost. Then find out which approval path applies and who will build it alongside your designer.

This guide takes those decisions in the order we raise them with owners. It covers cost drivers, what sits behind the walls, approvals, the contract protections that apply in NSW and how to choose a builder. If you would like to see how we run the work itself, our page on luxury home renovations in Sydney sets out the process.

What should you settle before the design starts?

Begin with the house rather than the finish schedule. Walk through the rooms and mark what you value, such as a period front, a good staircase or a connection to the garden. Then write down what the home must do that it cannot do today. A short and honest brief at this stage saves a great deal of redrawing later.

Before you commission drawings, gather these five things:

• The existing plans and any survey you hold, together with the year the house was built.
• The planning status of the property, including whether it is a heritage item or sits in a conservation area.
• A budget range for the whole project with a contingency held separately.
• Your decision on whether you will live in the house or move out during the work.
• Any drawings you already have and the architect you would like to work with.

What does a luxury renovation cost in Sydney?

There is no honest single figure because the scope sets the price more than the floor area does. CPP Quantity Surveyors puts home renovation costs in Australia at $2,000 to $5,000 per square metre, a range that spans everything from minor updates to significant structural work. Treat it as a broad reference rather than a price for a home with natural stone, bespoke joinery and careful restoration.

For new-build context, our guide to what a custom home costs in Sydney's eastern suburbs cites CPP's 2026 range for architecturally designed homes with premium finishes. That range applies to new homes and not to renovations.

What moves a renovation price is rarely the visible finish alone. These are the drivers we look at first:

• Structure and services New openings, removed walls, strengthening of the existing frame and upgrades to electrical, plumbing and drainage.
• Waterproofing Bathrooms, laundries and balconies need careful detailing because faults stay hidden until damage appears.
• Access and protection Narrow streets, limited parking and the cost of protecting the rooms you are keeping.
• Heritage controls Conservation requirements that shape materials, methods and the approval path.
• Finishes Natural stone, bespoke joinery and handmade tiles priced from a detailed specification and not a general allowance.
• Contingency A separate allowance for what the house reveals once the work begins.

Ask every estimate to show what is included, what is excluded and which allowances are still provisional. A price built on a drawn and specified scope is worth more than a lower figure that leaves the unknowns for later.

What sits behind the walls of an older home?

The costliest surprises in a renovation are the ones nobody can see at concept stage. CPP lists old wiring, plumbing, structural issues, asbestos and hidden defects among the things that raise the final cost. Its warning is that a budget that looks tight on paper can unravel quickly once walls are opened up.

Asbestos is the one to plan for first. SafeWork NSW says any house or building constructed or renovated before 1990 could contain it. The only way to be certain is to have a sample tested in a laboratory. SafeWork recommends a licensed asbestos professional to assess or remove any amount.

We suggest arranging asbestos testing and an engineer's view of the existing frame before the price is fixed. That puts the cost and the sequence into the budget from the start instead of leaving them to be found during demolition.

Services and waterproofing need the same early attention. A new layout often moves kitchens and bathrooms away from the pipes and circuits that served the old one. Ask for a services plan and a waterproofing scope before you compare prices.

Which approvals apply and how do they shape the program?

NSW has three broad routes. Exempt development covers minor work that needs no development consent. Complying development is a fast-track approval assessed by a council or private certifier against a set code. Work that fits neither route needs a development application with the council.

Heritage changes the answer. NSW planning guidance says complying development generally cannot be carried out on land in a heritage conservation area or on land with a listed heritage item, with some exceptions. For a period home in a conservation area that points towards a development application instead of the fast-track route.

Our guide to choosing between a DA and a CDC shows how to test the route for your property. Check the heritage status and the council's planning controls first because they set the path before any drawing begins.

This is also why a renovation needs generous planning time. The existing house has to be investigated before the design and the price can settle. Approvals and the early ordering of items that take time to source, such as stone, joinery and handmade tiles, then sit before the first day on site. Ask your builder for a program that shows each stage separately and expect it to be revised as the house reveals itself.

If the scope keeps growing, compare it honestly with a rebuild. CPP suggests a rebuild starts to look more financially attractive once a major structural renovation and extension costs more than around 60 per cent of building a new home. Our guide on whether to knock down and rebuild or renovate shows how to test both options against the same brief.

Which protections apply when you sign a building contract in NSW?

The NSW Government publishes guidance on residential building contracts and these are the protections worth checking before you sign:

• Written contract Work over $5,000 needs a written contract and jobs over $20,000 need a more extensive large job contract.
• Deposit Under NSW home building law the maximum deposit you can be asked to pay is 10 per cent.
• Home building compensation cover For jobs over $20,000 your builder must have this cover and give you the insurance certificate. Check that it is valid before you pay a deposit.
• Progress payments Every contract over $20,000 must include a progress payment schedule and the payments should match work done and not time on the job.
• Variations Changes to the agreed work must be in writing and signed by both parties.
• Licence Look up your builder's details on the NSW licence check before you sign.

Our guide to what iCIRT is and why it matters explains one independent rating of a builder's finances and track record.

What is it like to live through a renovation?

Whether you stay or move out is a planning decision as much as a personal one. Staying saves rent but you share the house with dust, noise and trades. Moving out leaves the builder free to work in a clear sequence but adds accommodation and storage to the budget. A middle path is staging, where one part of the house is finished and occupied before the next is opened up.

Whichever you choose, ask how the rooms you are keeping will be protected. Floors, staircases, joinery and period details need covers and dust barriers before demolition starts and that cost belongs in the price. Agree access arrangements and tell your neighbours early because narrow streets and shared boundaries leave little room for surprises.

How do you choose a builder for a high end home renovation?

Choose a builder who asks detailed questions before offering a number. The questions should cover access, existing conditions, the structure and what you intend to keep. Ask to see completed work of a similar kind and ask how the builder protects retained rooms during the build.

Our guide to how to choose a luxury home builder in Sydney covers licences, insurance and how to compare quotes on the same scope. If you already work with an architect, building from an architect's plans in Sydney explains how to prepare drawings for pricing and how to compare the quotes that come back.

How does this play out on a real Sydney home?

CONWAY is a Federation residence in Randwick that we built to a design by Tina Kosta Studio. The front of the house was restored and a contemporary Mediterranean extension was added to the rear. The project was completed in 2025.

The palette shows the level of detail involved: a tuck pointed brick facade, tessellated tiles, travertine, handmade glazed tiles and brass. Inside, there are vaulted ceilings rising to skylights, a natural stone island and arched openings. The home has four bedrooms and three bathrooms in 180 square metres of building on a 490 square metre site.

A project like CONWAY shows why we ask about the existing structure, the planning status and the finish specification before we talk about a price. Those answers shape everything that follows. Our guide to renovating a Federation home in Sydney follows CONWAY in more detail, from what to keep at the front to how the rear extension meets the garden.

How do you start planning your own renovation?

If you are weighing a renovation, the most useful first step is a conversation about the house itself. Book a consultation and send us the address and what you want the home to do together with any drawings you already hold. We will give you an honest view of the approach, the approvals to check and the questions to answer first.

Our luxury home renovations in Sydney page explains how design and construction work together on projects like yours.