How much does a home addition cost?

The cost of a home addition in Sydney can vary significantly depending on several factors. As of 2024, here are some approximate ranges:

Basic room addition (30-40m²):

• Standard quality: AUD $2,500-3,500 per m²

• Higher end: AUD $3,500-4,500+ per m²

Key factors affecting cost:

1. Type of addition

• Second story: Generally 20-30% more expensive

• Ground floor extension: More affordable but may require excavation

• Bathroom/kitchen additions: Higher due to plumbing/electrical

  2. Materials & finishes

• Basic materials: Lower cost but still meeting building codes

• Premium materials: Can significantly increase costs

  3. Site conditions

• Slope of land

• Access difficulties

• Soil type

• Need for retaining walls

  4. Council requirements

• DA (Development Application) fees: AUD $2,000-5,000

• Construction Certificate: AUD $1,500-3,000

Additional costs to consider:

• Architectural/design fees: 3-10% of project cost

• Engineering reports: AUD $1,500-3,000

• Project management: 10-15% if using a builder

• Temporary accommodation if needed

Note that these are approximate figures and can vary based on location within Sydney, current market conditions, and specific requirements. It's recommended to get multiple quotes from licensed builders for accurate pricing.

Do home additions add value?

Home additions typically do add value to a property, but the return on investment (ROI) varies significantly depending on several factors:

Key factors that influence value addition:

1. Type of Addition

• Kitchen and bathroom additions typically offer the highest ROI (60-80% of costs)

• Master bedroom suites generally return 50-70%

• Family rooms/living spaces usually return 50-65%

• Sunrooms and decks tend to have lower ROIs (around 45-60%)

  2. Quality and Design

• Additions that match the existing home's style

• Professional workmanship

• High-quality materials

• Proper permits and compliance with building codes

  3. Market Factors

• Local real estate market conditions

• Neighborhood comparable properties

• Area's price ceiling (avoid over-improving)

• Local buyer preferences

  4. Practical Considerations

• Functional improvements that address real needs

• Proper space planning

• Impact on yard space

• Energy efficiency

Important Cautions:

• Not all additions recover their full cost when selling

• Over-customization can limit appeal to future buyers

• Poor execution can actually decrease home value

• Consider how long you plan to stay in the home

It's advisable to:

1. Research local market trends

2. Consult with real estate professionals

3. Get multiple contractor bids

4. Consider cost vs. value reports for your region

The best additions typically solve a functional need while also adding value, rather than being done solely for investment purposes.