Adding Value to Your Melbourne Property
Renovations and extensions are one of the most reliable ways to increase the value of your Melbourne property. From boosting lifestyle and livability needs to improving resale, the right work delivers returns well beyond the construction phase. A well-planned renovation improves how you live now while setting up your property for the future.
The real value comes from doing it properly. Using quality trades, quality materials, and planning carefully. Cutting corners doesn’t add value, it just creates problems later.
Which Renovations Add Value to Melbourne Property
Kitchens and Bathrooms
These are always the top value drivers. They’re spaces buyers look to first, and they deliver some of the highest returns when designed and built well. Quality fixtures, timeless finishes, natural light, and functional layouts make all the difference.
Open-Plan Living
Creating flow between the kitchen, dining, and living areas improves both daily living and buyer appeal. Removing walls, improving the natural light, and creating a connection to the outdoors changes the whole feel of a home.
Extensions and Extra Space
Adding square metres, particularly extra bedrooms, bathrooms, or a dedicated “zone” like a home office or chill-out space, can significantly increase property value. Rear extensions, in particular, tend to deliver the best lifestyle and resale balance.
Engaging with a local builder and agents can give you insight into buyer preferences specific to your suburb.
Energy Efficiency
Upgrades like improved insulation, double glazing, efficient heating, and solar solutions appeal to Melbourne buyers and lower owners’ running costs. The shift toward sustainable living means energy-smart homes are now a premium and sought-after feature.
Preserving Character and Heritage
In Melbourne, heritage charm remains a major value factor. Thoughtful renovations that retain or restore original details (like cornices, skirtings, brickwork, leadlight/stain-glass), while integrating modern comforts, achieve the best results.
Planning for Value: What to Consider when Renovating or Extending Your Melbourne Property
Start with Your “Why”
Understand whether you’re renovating for lifestyle or resale, or both. Ask yourself if this is your forever home, or will you be selling it in the next five years? This helps guide decisions on design, finishes, and budget priorities.
Work Within Your Property’s Potential
Every property has a ceiling price for its suburb and block size. Avoid overcapitalising by researching comparable properties and talking to your builder about realistic ROI if resale value is the priority.
Balance Budget and Quality
Quality matters more than quantity. A smaller, well-executed renovation can outperform a larger but poorly finished one when it comes to resale. If working to a budget, invest in areas that are ‘high use’ like flooring, kitchen countertops and bathrooms. A general rule of thumb is prioritise (or splurge) on areas you touch everyday and foundational elements (particularly those that are hard to change down the track).
Think Long-Term
Choose design elements that won’t date quickly or that you’ll bore of easily — natural materials, classic palettes, and enduring layouts. Homes that feel timeless tend to hold stronger value.
At SMD Projects, we help clients design with longevity in mind. You don’t want to be redoing things in five years because they’ve dated or worn out.
How Much Value Can a Renovation Add to a Melbourne Property?
Melbourne property values are generally pretty high, while figures vary depending on suburb, quality renovations can generally add anywhere between 5–20% to your home’s overall value. In most cases, that’s a return far greater than the cost of the work, especially when improvements focus on function, efficiency, and aesthetic appeal.
Extensions that add usable living areas, reconfigured kitchens, or additional bathrooms/powder rooms are particularly effective for increasing both liveability and market value.
SMD Projects that have increased the value of Melbourne Properties
Thornbury
Bold modern extension added lifestyle space and strong resale appeal.
View the Thornbury project here.
Caulfield
Large-scale renovation integrated old and new seamlessly.
View the Caulfield project here.
Preston
Custom stone sinks and unique detailing doubled liveability and value.
View the Preston project here.
The SMD Approach to Adding Value to Your Melbourne Property
At SMD Projects, we believe true value comes from craftsmanship, quality, collaboration, and great communication. Our process ensures clients understand not just what they’re building, extending, or renovating, but why.
For us, it’s about creating something that lasts, something that works for the client’s lifestyle today and adds genuine value tomorrow. From thoughtful design to quality execution, every project is built to deliver enduring appeal and livability.
Increasing the Value of Melbourne Property — FAQs
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Kitchens, bathrooms, and well-designed extensions deliver the strongest returns.
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Yes — they reduce ongoing costs and are highly sought-after by Melbourne buyers.
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Work with an experienced custom builder who understands both design and market appeal, and can guide you through any doubts you have around design choices.
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Typically between 5–20%, depending on project scale, suburb, and quality of work.
Get Started on Your Renovation, Extension or Knockdown Rebuild
Still have questions about adding value to your Melbourne property? We’d love to help.
Ready to get started on your renovation, extension or knockdown rebuild?
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