In most cases, a shiny new kitchen will add resale value, as long as you make considered design choices and avoid overcapitalising. If you’re thinking about renovating your kitchen, it’s worth knowing how much the project could add to your resale value, including average Australian costs, expected ROI, and practical strategies to ensure your upgrade pays off.

Everyone knows the kitchen is the heart of the home, so it stands to reason that a shiny new space could bump up the resale value—but how much does a kitchen renovation add to home value exactly?

Whether or not this is why they’re undertaken, the fact remains that most renovations are investments. Some of the most popular renovations that can significantly add value are:

•       Replacing benchtops with stone or engineered surfaces
•       Updating cabinetry and handles
•       Installing energy-efficient appliances
•       Open-plan layouts that connect to dining/living spaces

Given this, it doesn’t hurt to be aware of how to get the best possible ROI. Let’s look at kitchen renovations as an investment—from how much does a new kitchen add to house value, and how to ensure you’re getting your money’s worth.

Are kitchen renovations a good investment?

Kitchen and bathroom renovations are both widely considered a good investment. And, like all good investments, they require some upfront spending that pays off down the line. Plus, you’ll get to enjoy a beautiful new space until the day comes that you decide to sell.

Here are some facts you might not know about how much does a new kitchen add to home value:

•       The average cost of a kitchen renovation in Australia ranges from $15,000 to $50,000, depending on the size, style, and finishes you choose.
•       Kitchen renovations in Australia typically recoup between 60% and 80% of their cost at resale.
•       Renovation timelines range widely—from as little as 4 weeks for minor updates to over 5 months for major makeovers.

How much value does a renovated kitchen add?

How much does a renovated kitchen add to house value varies based on the location, the finishes chosen throughout the renovation, and how well the renovation relates to the rest of the house.

Some industry data suggests that kitchen renovations can recoup between 60% and 80% of their cost at resale. Here is a more detailed look:

How to maximise your kitchen renovation ROI:

Unless you’re renovating a kitchen in your forever home, you probably want to consider resale in at least some of the decisions you’re making. This doesn’t mean designing a kitchen that’s completely devoid of personality, but it might mean toning down highly individualistic choices, like neon purple tiles. It also means avoiding overcapitalising. As a general rule of thumb, you should avoid spending more than 5% of your home’s value on a kitchen renovation to ensure a positive ROI.

Here are some other ways that you can maximise the return on your kitchen renovation:

•       Make timeless design choices: Choose neutral colours and classic styles to appeal to a broader range of potential buyers.
•       Focus on high-impact areas: Prioritise upgrades that offer the most value, such as benchtops, cabinetry, and appliances.
•       Maintain consistency with home style: Ensure the kitchen design complements the overall aesthetic of the home to avoid deterring potential buyers.

Easy ways to add value to your kitchen:

If you want to upgrade your kitchen, but aren’t quite ready to shell out for a full renovation, there are lots of small upgrades you can do to tide you over, as well as more permanent changes you can DIY to increase your home value.

These include:

•       Repainting cabinetry in neutral tones to appeal to a broader range of buyers. This can be a particularly big value-add if you have quality cabinetry in dated colours, or older-style wood stain.
•       Replacing old handles and knobs with more contemporary designs.
•       Replacing or refinishing countertops with quartz, granite, or engineered stone.
•       Installing a new sink and faucet, which can improve both aesthetics and functionality.
•       Refreshing walls with paint.

How Shore Renovations can help:

If you’re wondering how much value does a new bathroom and kitchen add to your home, Shore Renovations can help with expert advice, drawn from decades of experience.

We specialise in crafting beautiful, lasting spaces that are both functional and beautiful. With 25 years of experience providing kitchen renovations in Sydney, our one-of-a-kind kitchen renovation service includes new colours, finishes, and appliances. We take care of the entire project, from start to finish, to give you a stylish, updated space that could significantly increase your resale value.

Contact us today to learn more.