Are architects worth it? Yes!
Groundbreaking research from the Melbourne School of Design at the University of Melbourne, and the ArchiTeam Cooperative finds architect-designed homes outperform the alternative.
Over the last few decades, Australia has embraced property investment and renovating to the point of national obsession. We love watching our renovation shows, following the property market, and making improvements to our homes. For those of us considering a renovation, a key decision can make a significant difference to the value of our renovated property. That decision is: should I use a registered architect?
For many people contemplating renovations to their home, deciding to use an architect can be a difficult choice. Architects are frequently dismissed as being an expensive luxury rather than a critical part of a successful renovation. However, new research from the Melbourne School of Design at the University of Melbourne has found that using an architect for your renovation leads to better resale values and higher capital gains in the long run.
This finding might seem intuitive, but there has been limited previous research to test this view. The work of architects is frequently discussed in terms of quality and feel. The benefits of good design include: quality of light in a space; the ‘flow’ of rooms; having spaces designed around how you live; and the experience of how good design can make you feel. However, it has often been difficult for architects to quantify these advantages into something that is measurable.
To tackle this issue, lead researcher, Dr Peter Raisbeck, was asked: ‘Do renovations by small-practice architects improve capital gains in the Melbourne residential property market?’ The answer from the detailed research project was a resounding yes; houses that are renovated by architects increase in value 1.2% per annum more quickly than those that are renovated without an architect. Whilst that 1.2% might not sound a lot, for a house with the median price of $1.2 million dollars this amounts to a substantial $256,000 increase in value over ten years. This suggests that the design quality achieved in renovations designed by architects is valued by prospective buyers when the property is eventually put on the market.
This study is the first of its kind to look specifically at the value that architects bring to house renovations in Australia. The research project compared two groups of properties: those that had been renovated with an architect, and those that had not. To be included in the study the houses must have been single detached dwellings, with two or three bedrooms, that had been renovated and then sold after the year 2000.
Efforts were made to ensure that the two groups of projects were directly comparable by taking factors such as building materials, planning overlays, land size and shape into consideration.
The research process also led to a key finding in regards to fees for architectural services. For every dollar that was spent on engaging an architect, the property gained $11.40 in value over a ten-year period. For example, on architects’ fees of $10,000, the added value after ten years would be an impressive $114,000. So, whilst architectural services fees might seem high when compared with going it alone, the value returned on this investment in the long term is much higher.
For those considering adding that working-from-home study, or first-storey extension, the first person to talk to is a registered architect. It might cost a little more up front, but investing in professional expertise and great design represents a healthy return on investment.
Author: Michael Smith, Architect, Atelier Red & Black
Posted 24 November 2020
