Brisbane has emerged as Australia’s largest renovation market by the value of approved work, with more than $5.3 billion in residential alterations and additions approved over five years, according to new research examining Australian Bureau of Statistics data.
The study, conducted by retailer The Furniture Trader, found the Brisbane local government area averaged $88.5 million in approved renovation work each month between 2021–22 and 2025–26, ahead of Sydney’s Northern Beaches and Queensland’s Gold Coast.
The findings highlight significant differences in renovation activity across Australian council areas, with some markets recording substantial growth while others have experienced a decline.
According to the study, Brisbane’s monthly approved renovation value increased 71.7 per cent over the five-year period, from $73.5 million to $126 million.
The Northern Beaches ranked second nationally, averaging almost $33 million in approved work each month, although its growth was considerably more modest at 6.1 per cent.
The Gold Coast placed third, with average monthly approvals of $26.5 million and a five-year total approaching $1.6 billion.
Its monthly approved renovation value increased 32.9 per cent over the period, from $23.81 million to $31.6 million.
The study reported that the annual value of approved renovation work nationally increased 27 per cent over five years, from approximately $12 billion to $15.3 billion.
However, the growth was far from uniform.
The City of Sydney recorded a 29.1 per cent decline in approved renovation value, the largest fall identified among the council areas examined.
That result relates specifically to the City of Sydney local government area, rather than metropolitan Sydney as a whole, where several other councils remain among Australia’s strongest renovation markets.
Melbourne also featured prominently in the rankings, with Boroondara, which includes Camberwell, Kew, Hawthorn and Balwyn, placing fourth nationally.
The municipality averaged $25.9 million in approved renovation work each month, with its monthly approved value increasing 24.8 per cent over five years to $30.3 million in 2025–26.
Stonnington, encompassing suburbs including Toorak, South Yarra and Prahran, ranked fifth, averaging $25 million a month.
The remaining top 10 council areas were Mornington Peninsula, Sunshine Coast, Inner West, Woollahra and Sydney.
While The Furniture Trader’s research measures the value of council-approved alterations and additions, KPMG’s analysis captures broader renovation expenditure using ABS national accounts data. The two datasets are therefore not directly comparable, but together provide a picture of investment in Australia’s existing housing stock.
KPMG found that renovations accounted for 37 per cent of national housing investment in 2025–26.
KPMG also reported that renovation expenditure increased almost 5 per cent over the previous year to $56.2 billion, approaching the peak recorded in 2021–22.
The consultancy’s analysis, based on ABS national accounts data, found investment in new homes had increased 20 per cent over four years, while spending on one-for-one replacement homes, commonly known as knock-down rebuilds, declined 32 per cent.
KPMG Urban Economist Terry Rawnsley said changing planning rules were influencing homeowners’ decisions about whether to renovate, replace or redevelop their properties.
“People are rethinking their options and prioritising what makes economic sense. A few years ago, an old house with restrictive planning controls would have been a renovation or a knockdown rebuild. Now, the option to add more dwellings like duplexes to a site is much more viable,” Mr Rawnsley said.
He said the decline in one-for-one replacements, alongside stronger investment in new housing, suggested planning changes were gradually supporting greater residential density.
In New South Wales, KPMG found investment in new dwellings exceeded renovation expenditure during 2025–26, reversing the position recorded in 2021–22.
However, renovation activity remained concentrated in established and coastal locations, including the Northern Beaches and Sutherland Shire.
In Victoria, KPMG recorded $13 billion in renovation expenditure during 2025–26, compared with $24.4 billion invested in new dwellings and $4.2 billion in one-for-one replacement projects.
Boroondara and Stonnington were among the state’s leading renovation areas, reflecting the appeal of established housing stock and the influence of planning and heritage controls.
Queensland recorded approximately $13 billion in renovation expenditure, alongside $17.9 billion invested in new homes.
KPMG found the Brisbane local government area accounted for almost $1.5 billion in renovation activity during 2025–26, noting that the council’s unusually large geographical boundaries contributed to its leading position.
The consultancy’s findings reinforce the scale of investment being directed towards existing homes, even as governments seek to encourage additional housing supply.
For real estate agents, the figures point to different conditions across established housing markets, where owners may have opportunities to improve existing properties, undertake extensions or pursue redevelopment.
They also demonstrate why renovation activity cannot be interpreted as a direct measure of additional housing supply.
While alterations and additions can increase the size, quality or functionality of an existing home, they do not necessarily create another dwelling.