Renovation ROI: 5 Design Upgrades That Add Real Value

Old home vs Renovated home

Want to Increase Property Value? Start with Design

Renovating your home can improve the way you live day-to-day — but if you also want to increase your property's market value, smart design is the key.

While surface-level improvements like fresh paint or new tiles may boost appeal, they rarely deliver long-term returns. In contrast, well-considered upgrades that improve layout, functionality, and energy efficiency tend to add measurable value.

Whether your goal is to sell, refinance, or rent out the property, these five design upgrades can significantly improve your return on investment.

1. Improve Kitchen Layout and Finishes

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The kitchen is often considered the heart of the home — and it is one of the first areas prospective buyers or renters evaluate.

Value-focused upgrades should go beyond just new cabinetry or tapware. Think about how people move through and use the space:

• Is there enough bench space for food prep?

• Are appliances placed logically?

• Is the kitchen connected to dining or living areas?

Modern buyers favour open-plan kitchens with islands, breakfast bars, and a connection to living spaces. In terms of finishes, choose quality over quantity. Stone or engineered stone benchtops, soft-close drawers, integrated appliances, and task lighting are all features that suggest a higher-end build.

Functional upgrades to plumbing and power outlets also increase value, particularly when combined with thoughtful joinery design.

2. Create a Second Living Area

Homes with only one living space can feel restrictive, particularly for growing families or shared households. Adding a second living area — even if modest in size — greatly enhances flexibility and day-to-day usability.

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A second living space could be:

• A rear family room

• A converted garage or loft

• A theatre room or children’s retreat

• A study nook with privacy screening

This design move not only makes your home more appealing to a wider market, but it also helps reduce internal pressure between household members. More usable zones translate to increased livability, which is a major selling point.

If you’re working within a tight footprint, even a partially separated space using sliding doors, feature walls, or cabinetry can achieve the goal without a full extension.

3. Add a Master Suite or Ensuite

Older homes in Western Australia often lack a private master suite. Adding or updating a main bedroom with a dedicated ensuite can substantially elevate the home’s appeal, particularly in competitive markets.

Considerations for adding a master suite include:

• Ensuring the bedroom size supports a queen or king bed

• Including a walk-in robe or smart wardrobe design

• Locating the ensuite for maximum privacy and sound separation

• Introducing natural light through highlight windows or skylights

Even in compact homes, creating an ensuite with a shower, toilet, and basin can add significant value and improve functionality, especially in multi-occupant households.

4. Connect Indoor and Outdoor Living

In Perth’s climate, outdoor living spaces are a major selling feature. Seamless transitions between indoor and outdoor areas can dramatically change how a home is used and experienced.

Design elements that enhance this connection include:

• Large sliding or bifold doors that open onto a deck, patio, or alfresco

• Continuous flooring materials or similar colour palettes inside and out

• Integrated landscaping, such as built-in seating or outdoor kitchens

• Covered areas for year-round use

An outdoor space designed as an extension of the living area creates visual and physical flow, which enhances lifestyle appeal and adds emotional value — a powerful factor in property valuation and sale price.

5. Address Energy Efficiency

Today’s buyers and tenants are increasingly conscious of energy costs and thermal comfort. Making your home more energy efficient not only reduces running costs but can also improve resale potential.

Key upgrades to consider include:

• Installing roof and wall insulation

• Retrofitting windows with double glazing or low-e glass

• Using thermal mass and passive solar orientation to manage heat gain and loss

• Sealing gaps and improving window coverings

• Upgrading to energy-efficient lighting and appliances

Even modest interventions can reduce long-term energy use, improve comfort, and meet future regulatory requirements. These upgrades are often eligible for rebates and make a positive impact during property appraisals.

Maximise Your Renovation’s Return

A beautiful home is valuable — but a home that is thoughtfully designed for function, flexibility, and sustainability is worth even more.

At Tay Bui Arch Studio, we help Perth homeowners identify where to spend and where to save in a renovation project to achieve both personal and financial goals. With our strategic design process, we prioritise decisions that balance lifestyle with long-term value.