Almost every owner of a single-fronted period home in Melbourne hits this fork. Renovate inside the existing walls, or push the back out and build new? The right answer depends on three things: your block, your council, and how you actually live.
Renovate within the footprint
Faster, cheaper, far less paperwork. No planning permit in most cases — just a building permit. Best when the existing layout is fundamentally sound but the kitchen, bathroom and finishes are tired.
Realistic spend: $180k–$320k for a full whole-home refresh on a 2-bed terrace, including new kitchen, bathroom, floors, paint and electrical.
Extension
Adds floor area and natural light, almost always to the rear. Triggers a planning permit in most heritage overlays — expect 4–8 months for approvals before you start on site. Spend usually starts at $4,500/m² for the new build, plus the existing house refresh.
Best when your daily friction is 'we don't have enough room' rather than 'this room feels tired'.
How we'd decide for you
If the existing kitchen and living spaces are in the wrong place (e.g. a north-facing front bedroom while the kitchen is in a dark south rear lean-to), an extension almost always wins. If the layout is right but everything's tired, a full refresh delivers more value per dollar.
