You can’t put a price on a good night’s sleep – but you can put a price on where you get that rest. The national renovations market has increased healthily over the last two years, the Housing Industry Association says, to the point where it is now worth in excess of $33 billion. There’s likely to be a lot of bedroom additions going into Melbourne real estate because of this.
It might be turning a second living area into a bedroom, or even adding a granny flat-esque unit in your yard. We’re not here to tell you how to add a bedroom – just to show you what it can be worth if you put your house up for sale down the line.
Inner-ring Melbourne real estate
For two bedroom houses, the median property price is $920,000; for three it goes up to $1.21 million, and at four bedrooms the median is an incredible $1.775 million. That’s an increase of more than $300,000 (and as much as $500,000) for the addition of a bedroom.
Middle-ring Melbourne real estate
In the middle ring, the REIV records slightly smaller increases in median price – although the jump to four bedrooms is significant. The data indicates median prices of $680,000 for two-bedroom houses, $720,000 for three bedrooms, and $1.01 million for four bedrooms.
This includes some of Melbourne’s best suburbs, like Pascoe Vale.
Outer-ring Melbourne real estate
As the prices drop further away from central Melbourne, so too do the increases you get from adding bedrooms. In outer ring suburbs, the median price of a two-bedroom house is $421,000. For three it goes up to $498,000 and at four bedrooms the median is $615,000.
Not every house will benefit from having a bedroom added.
Clearly, there can be some huge value-adding potential if you decide to add a bedroom to a house in the inner or middle-ring suburbs in Melbourne. However, you’ve got to take into account a lot of variables: how much land you have available to do this, what local government restrictions are in place, and even if you can afford it or it will add much value.
Not every house will benefit from having a bedroom added – a covered garage, for example, could end up being a better investment. To make sure you renovate right, get in touch with property professionals before you act.