Budgeting for a Luxury Kitchen Renovation in Melbourne
Luxury kitchen renovations are about more than premium appliances and expensive finishes. They come down to balance — a careful mix of design, practicality and long-term value. In Melbourne, where the kitchen often anchors the entire home, a well-executed high-end renovation can lift a property’s value while transforming daily life.
But the budget conversation needs to come early. That’s where many projects go sideways — not because people spend too much, but because they spend without a plan. Whether you’re tackling a full rebuild or reworking an existing layout, luxury starts with structure.
In the context of kitchen renovations in Melbourne, smart budgeting means asking the right questions up front. What’s driving the upgrade? What’s essential and what’s flexible? How do you spend with purpose instead of impulse?
1. Understanding the scope before setting the spend
Not all luxury kitchens are created equal. Some involve full demolition and layout reconfiguration. Others work with an existing footprint and focus on upgrading the materials, appliances and finishes.
Key elements that influence the total cost include:
- Moving plumbing, walls or gas connections
- Structural reinforcements or architectural design
- Custom cabinetry and joinery
- Benchtops in natural or engineered stone
- Integrated lighting and automation systems
- Premium appliances and fixtures
- Flooring and splashbacks
For example, a family in Surrey Hills wanted a luxurious finish without altering the footprint. They invested in solid timber cabinetry, natural stone benchtops and architectural lighting. By keeping the layout and plumbing where it was, they avoided costly trade work and redirected that budget into bespoke finishes.
When you map out the scope properly, you avoid surprises and plan your investment strategically. You can find helpful insights by reviewing practical advice on how a kitchen renovation budget should be structured, especially for larger projects with high-end goals.
2. Creating a realistic budget that aligns with your expectations
In Melbourne, a luxury kitchen typically starts from around $60,000 and can stretch beyond $120,000 depending on size, finish level and design complexity. The term “luxury” means different things to different people, so having clear goals helps you set the right expectations.
A common approach is to break your budget into key categories:
- 35% cabinetry and internal hardware
- 20% appliances and fittings
- 15% benchtops and splashbacks
- 10% flooring
- 10% electrical and lighting
- 10% plumbing, permits and contingency
This structure gives you flexibility while keeping your priorities in sight. For instance, one homeowner in Balwyn North reduced costs on flooring by retaining the original timber, then reallocated that saving toward custom joinery that better suited their storage needs.
Even within a high-end project, thoughtful trade-offs help you stick to your figure without sacrificing impact. To see how other homeowners navigate this process, it’s worth exploring some of the most refined luxury kitchen renovation ideas across Melbourne, especially those that focus on functionality and timeless design.
3. Choosing features that offer lasting value
Luxury isn’t just about how something looks. It’s how it feels, how it performs and how long it lasts. That’s why certain features deliver more long-term value than others — even if they cost more upfront.
These areas often offer the best return on investment:
- High-quality benchtops that resist wear and tear
- Well-built cabinetry with premium soft-close hardware
- Energy-efficient, well-integrated appliances
- Layered lighting for both task and mood
On the other hand, some choices can be scaled back without reducing the overall effect. For example, instead of marble splashbacks, many homeowners opt for porcelain tiles that offer the same visual appeal at a more practical price point.
In one inner-east project, the homeowners opted for quartz composite surfaces instead of natural stone and directed the budget toward lighting and smart storage. The kitchen retained its luxury finish but worked better for daily life.
You don’t need to make these calls alone. When working through high-value design decisions, you can always reference guidance that provides expert insight into kitchen renovations tailored to Melbourne homeowners.
4. Factoring in the cost of customisation
Custom kitchens are the standard at the luxury end of the market — but they don’t just come with a price tag attached to materials. Time, craftsmanship and precision all affect the cost. Customisation involves more design hours, longer lead times and closer site coordination.
That said, custom doesn’t mean over-the-top. In many cases, it’s the only way to solve layout challenges or maximise storage in awkward footprints. Narrow homes, heritage spaces or kitchens that double as entertaining zones often benefit most from bespoke joinery.
The key is knowing where it’s worth the detail. Floor-to-ceiling cabinetry can be custom. But drawer inserts, open shelves or internal pull-outs might be sourced off-the-shelf.
In a Malvern East home, a fully custom appliance wall helped integrate ovens, fridge, pantry and wine storage — all hidden behind matching panels. It was an investment that made the space feel seamless and considered.
Build your budget with some give — and always check with your designer which pieces truly need custom sizing.
5. Budgeting for trades, permits and site complexity
It’s easy to focus on finishes, but most kitchens involve a long list of behind-the-scenes costs that eat into your total. These include:
- Demolition and waste removal
- Plumbing and electrical work
- Replastering or wall repairs
- Permit applications for structural changes
- Site access and delivery constraints
Older homes often require extra prep — like rewiring, levelling floors or reinforcing walls — which may not be visible at first glance. Always allow for a contingency of at least 10% for these unknowns.
For example, a project in Ascot Vale needed new ceiling supports after removing a bulkhead. It added $4,000 to the budget, but the change opened up the room dramatically and allowed for better ventilation and lighting placement.
The right builder or project manager will flag these issues early and help you build a realistic cost base.
6. Allowing for items that aren’t always included in quotes
Many renovation budgets leave out “soft costs” or incidentals that catch people off guard. These can include:
- Appliance installation and testing
- Custom handles or hardware
- Delivery and crane hire for stone benchtops
- Backup materials in case of product variation
- Upgraded paint finishes or protective coatings
In one Brighton home, a bespoke brass rangehood required additional ducting and fire-rated sealing — a $1,500 cost that hadn’t been accounted for. The client was able to absorb it only because they’d built in a flexible line item for fittings and finishes.
Be clear with your trades and suppliers about what’s included in each quote. Don’t assume installation, delivery or finishing is part of the base cost unless it’s written in.
7. Planning your budget around how you’ll use the kitchen
One person’s luxury is another person’s headache. That’s why the best budget plans begin with how the kitchen will be used — not just how it looks in renderings.
Think about how many people cook at once, how often you entertain and what your storage habits are. Do you prefer everything hidden or accessible? Is a butler’s pantry essential, or would open shelving suit better?
These choices affect layout, cabinetry, appliance size and lighting — all of which influence cost.
A retired couple in Mont Albert chose comfort over scale. They reduced island bench length, skipped overhead cupboards and put the savings into built-in seating and a walk-in pantry. Their version of luxury focused on ease and warmth, not grand scale.
If your kitchen reflects your lifestyle, the result feels high-end, even if every item isn’t top-dollar.
8. Keeping track of costs while staying flexible
Luxury kitchens are detailed — which means things shift along the way. A fixture might be out of stock. A material may be discontinued. Or you might fall in love with a fitting you hadn’t budgeted for.
That’s why cost tracking matters. Keep a live spreadsheet and update it weekly. Log actual spend versus budgeted amounts. This keeps you in control and helps you reallocate as needed.
It also helps you make better decisions when small upgrades arise. If you know you’re $2,000 under on cabinetry, you can say yes to a handmade tile splashback or an integrated rangehood that lifts the space.
Budgeting for luxury doesn’t mean locking down every dollar — it means spending smart and making room for ideas that improve the result.
FAQs
1. How much should I budget for a luxury kitchen renovation in Melbourne?
A typical luxury kitchen in Melbourne starts at $60,000 and can go beyond $120,000 depending on materials, layout changes and level of detail. The final figure depends on the size of the kitchen, whether you’re moving walls or services and which finishes you select.
Expect to pay more for custom joinery, high-end appliances and architectural design features. Your location and access to trades can also affect labour costs.
Breaking your budget into categories like joinery, appliances, benchtops, trades and contingency will help you manage the process. It also allows you to shift priorities as the project evolves.
2. Where do most people overspend during kitchen renovations?
Most cost overruns happen in three areas: structural changes, premium materials and trades. Removing walls or altering plumbing can uncover hidden issues that raise costs. Choosing high-end materials without checking installation or lead times can also blow the budget.
Other common areas include lighting and appliances — especially when homeowners add upgrades mid-project. Smart budgeting means identifying your must-haves early, then allowing for flexibility in less critical areas.
Always build a 10% buffer into your budget to handle the unexpected. That way, changes don’t derail the entire project.
3. Can I have a luxury kitchen without changing the layout?
Yes — keeping your existing layout is one of the best ways to stay on budget while achieving a high-end finish. By retaining the position of your sink, cooktop and plumbing, you reduce trade costs and free up more money for premium materials and finishes.
Upgrading cabinetry, benchtops, lighting and appliances can completely transform your kitchen without altering its footprint. This is especially useful in period homes where structural work is restricted or expensive.
Even within a fixed layout, a skilled designer can reconfigure storage, improve workflow and introduce architectural features that add luxury and functionality.
4. How long does a luxury kitchen renovation take?
On average, allow 8 to 14 weeks for a luxury kitchen renovation — including demolition, build, cabinetry, electrical work and final fit-off. Larger projects or those involving structural changes may take longer, especially if custom materials are used.
You’ll also need time for design development, permits and ordering materials before construction starts. Factor in a few weeks for unexpected delays — whether due to weather, supplier issues or on-site conditions.
Working with an experienced builder or project manager can help keep things on schedule and reduce disruptions.
5. Do I need a designer for a high-end kitchen renovation?
If you’re planning a luxury renovation, working with a kitchen designer is highly recommended. A good designer will not only ensure the kitchen looks great but also help with layout, flow and functionality — all while keeping your budget in mind.
They’ll also coordinate with trades, select materials that suit your needs and manage lead times for custom work. Their experience can save you from expensive mistakes and create a result that lasts.
Designers often have access to suppliers or finishes not available off the shelf, which helps make your kitchen feel unique and tailored to your lifestyle.
Spend where it counts — and make it last
Budgeting for a luxury kitchen renovation isn’t about picking the most expensive item on every list. It’s about choosing what will work best, feel right every day and hold up for years to come. When you focus on priorities, stay flexible and plan for the unexpected, the result is a space that’s truly worth the investment.
For support at every step — from design to delivery — visit Let’s Talk Kitchens & Interiors and start building a luxury kitchen that reflects your taste, your home and your future.
Please call us today on (03) 8797 5506 to speak with one of our qualified Interior Designers or book a consultation.
