2025 Renovation Predictions

With news of the latest interest rate cuts, stabilising product and material costs and a tight Perth property market, kitchen and home renovations continue to surge in popularity.

Here at Retreat Design we’ve been busier than ever with the demand for home upgrades showing no signs of slowing. While there is low stock in the high-end residential areas, households will increasingly choose to renovate their existing home rather than move or build a new one.

Investing wisely in quality home renovations offers substantial lifestyle improvements and ultimately increases the value of your home.

Whilst the average spend on kitchen and bathroom projects is increasing; largely due to skilled labour shortages and trades pricing; the affordability of renovating is more viable with rate cuts allowing people to refinance and borrow more money.

When setting your renovation budget, it’s important to consider the cost relative to the value of your home. Our research suggests you should look to spend between 3% to 8% of your home value on your kitchen. This ensures you are maximising the financial benefit of a well-designed home come sale time without over capitalising in the short term. When it comes time to sell, for most prospective buyers, the kitchen can make or break a sale.

As per the article below, experts last year predicted a boom in the kitchen and bathroom industry in Perth in the 2027/2028 financial year and we are already seeing this come in to play.

If you are considering a home improvement project in the next year, we would be more than happy to have a chat about your plans. Our showroom is located at 156 Onslow Rd, Shenton Park.