It’s a question we get asked a lot: how much value will a view add to our home?
With some projects, the decision to build an addition – going up – rather than an extension – going out – can come down to whether the new storey will or won’t lead to a special view.
Adding Extra Value
We shouldn’t just talk about value in terms of money. The reason a view can command a premium is that it is inspiring or provides a sense of calm, taking our minds away from the hubbub and stress of city life.
In Sydney, people talk about “million dollar views” and, for the rich and famous, that often means a view over the harbour or out to the ocean.
However, a view can also be more mundane – over nearby bushland, of the cityscape, or even just over the surrounding tree canopy – and still add value to your home.
Advice From An Agent
Especially if you are renovating for profit, the best person to ask about how much value a view will add specifically to your home is your local Real Estate agent.
They will have a good idea of the other homes in your area that have a view. From that, they should be able to guide you on how much a view can add to your home.
Firstly we ask: is there some sort of ballpark figure that a view can add to your home?
“The value of a view – in terms of the resale value of a home – comes down to a few factors: the area the home is in, the type of view, and how unique or hard to replicate that view is”, Vicki explains.
“In terms of Sydney, a view over the ocean or harbour in a premium suburb that isn’t widely available may literally add millions to the home’s value.”
“In percentage terms, that might be another 40% to 50%.”
“On the lower end of the scale,” Vicki notes, “a nice view over the streetscape and tree canopy of an average suburb might add 5% to the value of a home. With the median value in Sydney now around $1.3 million, that’s still a considerable number, around $65,000.”
A Hierarchy of Views?
We also want to know: is there a hierarchy of views?
“I think ocean and harbour views are pretty similar, but obviously if that harbour view includes the Harbour Bridge or Opera House, it’s an altogether different magnitude of multiple,” states Vicki.
“Next would be a view of the city or other waterways. I recently sold an apartment with 360 degree views over the Parramatta River. Comparing that to an apartment in the same block without a view sold only a couple of weeks ago, the one with a view went for around 45% more.”
“Views towards or over bushland or a national park also add plenty of value depending on the vantage point,” Vicki adds.
In terms of that vantage point, does a balcony with a view trump a window with a view?
“I think it’s fair to say that a balcony, especially one with space to sit or entertain from, is more valuable,” Vicki agrees.
“With some homes, adding another floor gives you a mix of views, some from a window, others from a balcony, so really it does come down to a case-by-case assessment.”
“Another factor can be how lucky you are on auction day. If there are two bidders who really, really want that view, they may take the price to a level beyond our assessment.”
So does a view make a home more sellable as well as valuable?
“Scarcity and uniqueness will, in most cases, make a home easier to sell,” Vicki confirms. “There’s a point at which the home price will start to exclude some potential buyers, but we find that in the current climate, that really isn’t a problem.”
Looking to Go Up?
Expanding your home should, when done with care, always add value. It seems clear that if you can add another level and the resulting view is impressive, you’ll be rewarded not only with an outlook to enjoy, but also a windfall if you ever sell your home.
If you are looking to expand your home, Addbuild is always happy to help and can arrange to come out to look at your home to talk through your options.
Addbuild has been building Sydney home additions for over 40 years. We use that wealth of experience to advise you on how to best take advantage of views if adding a new storey to your home.