When savvy homeowners invest in their properties, they want to be confident that they can make a return on their investment. Sure – you could invest in a new electric garage door for your property, but how much home value does it really add in practice? Not a lot, probably. 

Remodeling your kitchen is a much bigger deal. A new garage door mechanism will probably set you back a few hundred dollars. A brand new kitchen, on the other hand, with all the bells and whistles, could easily cost tens of thousands. 

So what’s the expected return on investment for people who invest in kitchen remodels in Australia? Let’s take a look. 

What Is The Average Return On Investment For A Kitchen Remodel In Australia?

When it comes to kitchen renovations, some people go all out. It is not uncommon for those at the high end of the market to blow $100,000 on bespoke cabinetry, marble flooring, and solid granite worktops. 

Some people, however, take a more frugal tack, paying as little as $10,000. At this price point, the fixtures and fittings are basic, but the investment can still have a remarkable impact on the selling price of a property – far above the cost of implementation. 

An estimate from Better Homes suggests that a $10K investment in a kitchen could yield a $20K increase in the value of the property. That’s a whopping 100 per cent return on your investment. 

But for those spending more, it can be a sliding scale. A $50K  remodel might yield a $70K increase in the price of the property; a $70K remodel might boost the value by $80K and so on. Nevertheless, the majority of homeowners are still likely to make a return, even if they shell out on a luxury refit.

Domain cites some fascinating figures on the return that you could expect from investing in a new kitchen. It says that you can spend $10,000 on a kitchen and increase the value of your property by $50,000 to $60,000. That’s a 400 to 500 per cent return.

Business Insider Australia takes a slightly more conservative view. It cites Chris Dossman, an agent working for a major real estate firm, who says that kitchens usually return around 66 per cent – so not as good as before, but still pretty decent. 

Why Your ROI Might Be Lower Than You Want

Most kitchen renovations do add value to your home, but there are some caveats.

If your kitchen is down a corridor, at the back of your house or next to a toilet, no amount of renovation can undo the damage. Buyers will take one look at the floorplan and demand that you lower the price. 

Costs can also escalate if you have poor plumbing or wiring, cutting into your returns. You might not be able to instal modern fittings and appliances if the infrastructure that supplies your kitchen isn’t up to the task. 


Overall, therefore, most homeowners should see a positive return on their kitchen remodel investment, but it is by no means guaranteed. As always, do your research first.