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Ok, let’s be honest: the last few years of renovation planning have felt like trying to build your dream home in a cyclone of rising costs, delays, and stress-inducing media headlines. But here’s the good news – 2025 is finally bringing some sunshine. We caught up with James Pilcher, Founder of MILEHAM Architects + Builders in Freshwater, to talk budgets, trends, and bang for your buck.
If you’ve been dreaming of a home renovation but holding back due to rising construction costs and interest rates, you’re not alone. The good news? The tide is turning. James Pilcher, Founder of MILEHAM Architects + Builders and a go-to for homes with Belle-worthy polish, says things are starting to shift. “The Australian Bureau of Statistics has recorded the first decrease in building material prices since before COVID.” Yes, really. After a 35% climb since 2019, costs are finally easing.
For homeowners ready to act, now could be the right time to start planning, and James has two golden rules. “Get the right advice early,” he says. “Don’t just find someone who tells you what you want to hear. Make sure they’re qualified to give that advice, and never take a build estimate from an architect with no in-house construction expertise as they’re not pricing or building your home. This is why the design-and-build model is becoming so popular for busy families and executives.”
Renovation Goals
As for trends, James says home designs are shifting to reflect the way we live now. “Two living areas have become almost essential; either to give adults that much-needed quiet space away from noisy young children, or to give adult children staying home longer some privacy and personal space. We don’t have study nooks anymore. Studies are now full-sized home offices that double as a spare bedroom for guests,” he says.
The modern master suite has become the new must-have. Think spacious bedrooms, walk-in robes, and private ensuites. And pools remain hot property, even in tighter backyards. “The stabilisation in costs is giving clients more confidence to build their perfect home,” says James.
MILEHAM is a boutique residential architecture and construction firm, providing integrated design and construct services. Learn more by reading MILEHAM’s collection of home renovation blogs.
$500,000 – 3-4 MONTHS
New kitchen
2x new bathrooms
Repaint all internal surfaces
New flooring
Add a small deck/terrace
Internal works only
No pool
No landscaping
$800,000 – 6-9 MONTHS
New kitchen
2x new bathrooms
Repaint all internal surfaces
New flooring
New small addition OR extension (1–2 rooms)
Internal works only
New in-ground pool (if no addition or extension)
Some landscaping
$1.2 million – 9-12 MONTHS
New kitchen
2x new bathrooms
Repaint all internal surfaces
New flooring
New addition OR extension OR major floorplan changes
Upgrade façade (roof, rendering, cladding, painting)
New in-ground pool
Full landscaping
$1.8+ million – 12-18 MONTHS
Full knock down and rebuild
New in-ground pool
Full landscaping
BUDGET BREAKDOWNS
If you’re spending your nights dreaming of that high-end, architecturally designed renovation (hello, entertainer’s kitchen and master suite), here’s what you can achieve at different budget points:
$500,000–$750,000: Rework your existing footprint into a small addition or extension, add two new bathrooms and a designer kitchen, and give everything a fresh coat of paint. Be aware that startup costs like specialist consultants (e.g. surveyors), approvals, and drawings can chew up around 10% of your budget, so every decision counts.
$750,000–$1.2M: Here, you can do a significant extension or addition. A full open-plan living space, new master suite, or even a home office. “Once you pass the half-mil mark, your money goes further. Those fixed upfront costs don’t rise much, so more of your budget goes into construction."
$1.2M+: Now we’re talking a major transformation. Think gut renovations, high-end finishes, landscaping and even that dream pool. “At this level, we’re creating homes that are tailored to how people want to live with entertaining and multigenerational living.”
