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The Average Price of a New Kitchen

Many people ask what a new kitchen will cost. It’s difficult to give an estimate without seeing the space and going through the client’s needs and desires. There is no standard base model from which to amass kitchen prices. Kitchens vary in price due to differing cabinet materials, design complexity, features and fixtures, bench-top and splashback materials, appliance selection and trade components.

Every floor plan is different, and every space requires different considerations, including design layout, materials, hardware, accessories, and structural renovations (like removing walls). Looking at current statistics gives us the best ballpark figures.

Typically a kitchen renovation should be no more than 7% of your property value, anywhere between 4-6% is optimal.

 The Home Industry Association (HIA) pointed out in their kitchen and bathroom report for 2010/11 that; “The total number of kitchen installations (including both new installs and renovation jobs) is forecast to ease by 0.6 per cent in 2010/11 to a level of 506,200. This follows growth of 7.5 per cent in 2009/10.” In addition, “The total value of kitchen installations(including both new installs and renovation jobs) is forecast to increase by 5.2 per cent in 2010/11 to a value of $7.2 billion. This follows growth of 9.2 per cent in 2009/10.”

These statistics indicate that people are generally spending more money on their new kitchen renovations due to the influence of new design trends, and upgrades from basic kitchens to ones that include more features such as multiple drawer use, pull out pantries, pull out bins etc., that can make the kitchen more luxurious and ergonomic.

The average total cost of a kitchen by Blue Tea’s recommended suppliers is $15,500, not including the appliances. It is common to think that all the profits go towards the kitchen company supplying your kitchen. Actually, the profit margin is around 30%, or around $4,650. Out of that, the company must cover things as 10% GST, labour for design, manufacturing, ordering, project management and standard business overheads. So beware of companies offering cheap kitchens! Is it cheaper because you get lower quality materials, or is the vendor cutting into fees that would normally pay for an acceptable level of service?

Cost breakdown of an average kitchen at Blue Tea

Trades $3, 500

Stone Bench-top $2, 800

Custom Cabinetry $10, 200

How to Save Money

There are many ways you can save money on your kitchen renovation. Here are a few tips:

  1. Use your resources. Lower labour costs by removing the kitchen yourself and organising your own plumber and electrician (friend or family).
  2. Reduce the amount of cabinets in your new kitchen. The more cabinets you have, the higher the total cabinet cost.
  3. Choose less expensive finishes. If you want a sheen or glossy cabinet door, choose lower cost alternatives, such as sheen or gloss laminates, to expensive polyurethane.
  4. Choose a laminate bench-top. Laminate technology has improved dramatically over the years and there are thousands of colours and styles from which to choose.
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