Research conducted by the University of Melbourne and Architeam Cooperative has found that houses with renovations designed by small-practice architects outperformed non-architect-designed houses on the property market.
“This groundbreaking study is the first of its kind to look specifically at the value that architects bring to house renovations in Australia,” said lead researcher Peter Raisbeck.
The crowd-funded research project was designed to quantify the value of architects by assessing capital gains of those project in the Melbourne property market.
The research compared the aggregate value of two groups of properties: an architect-designed group and a non-architect designed group.
The average time the property was held in architect-designed group was 107 months (8.9 years), compared with average time in the non-architect group 94 months (7.8 years).
The research found architect-designed homes doubled in price in that time (200.7 percent) compared with the non-architect-designed properties which improved in value by 172.6 percent.
Adjusted for annual capital growth, the architect-designed properties improved in value by 1.2 percent per annum more than the non-architect group.
“Whilst 1.2 percent may not seem like a significant premium for an architect-designed house, this still amounts to a significant increase in capital value. For a median house prize of $1.2 million over the course of 20 years, this premium, if compounded, would amount to a $256,000 increase in value for a residential client,” the report stated.
The research also found that “for every dollar spent on architectural fees, the property gained $11.40 in capital appreciation.”
“Architects are frequently dismissed as being an expensive luxury rather than a critical part of a successful renovation. Architects and design-savvy home-owners have always innately understood the value of design, but have rarely had evidence to support it,” said ArchiTeam CEO Phoebe LaGerche-Wijsman.
“This research confirms that value, not just of architects, but specifically small-practice architects. Small practices – and those that share the philosophy of small-practice architecture – are uniquely placed to deliver value for money, without compromising on design principles. Small practices are the back-bone of the architecture sector in Australia, providing a valuable role in advocacy; community engagement; and as has been proven through this study, substantial financial benefits for homeowners.”