Can Architects Improve Property Values?
Justifying an architect’s fees is never easy. Most architects charge around 10% of the estimated construction budget, making them, by a significant margin, the highest-paid consultant on any building project. So what do you actually get for that?
What Does an Architect Actually Deliver?
With a good architect, you get a bespoke home that has never existed before — and no, the ideas don’t come from watching Grand Designs, scrolling Pinterest, or bingeing The Block.
In exchange for that substantial fee, an architect’s work extends well beyond a set of drawings for the builder to reference — that’s what a draftsperson typically provides. An architect delivers a comprehensive construction manual covering every aspect of the build: from the guttering to the kitchen handles, nothing is left unconsidered. If you want genuine comfort and have the budget for it, an architect knows exactly how to deliver it.
It’s Not About Throwing Everything In
But it isn’t simply about throwing everything in. An excess of inclusions can feel forced, contrived, or even off-putting. Think of the 1970s, when bidets became such a mark of affluence that people installed them even when the toilet was in a completely separate room. Today, we have an overwhelming wealth of options, and no single home could accommodate everyone’s preferences. Some clients are passionate cooks who need specific appliances. Others want a display kitchen. Some need room for every gadget imaginable; others want a space that’s effortlessly easy to keep clean. Everyone is different.
A good architect knows this. Once they understand who you are and how you live, every decision — from the benchtop material to the type of insulation — is made with you in mind. They also consider how you move through a space, eliminating awkward corridors, unnecessary detours, and doors that collide with cupboards. This is precisely what they’ve trained for.
Is That Enough to Justify the Cost?
That said, I’ll be honest: I’m not sure the above alone is enough to justify the price difference between an architect and a draftsperson.
You might reasonably think: “I’m happy to save $100k and live with an awkward hallway,” or “I’ll just buy a smart toilet after the build is finished.”
Then the process begins. After months of researching which toilet is right for you, you realise the architect had already worked through thousands of decisions like that — all with you in mind.
But here’s where the difference becomes genuinely justifiable.
Why an Architecturally Designed Home Feels Different
Whether you can articulate it or not, an architecturally designed home simply feels different. Here’s why:
- They’re quieter. The architect has specified high-quality windows, doors, and seals — not whatever was available at Bunnings.
- They’re better climate-controlled. It’s not just about insulation or building materials. It’s about orientation, window placement, natural light, cross-flow ventilation, and views — all considered together, not in isolation.
- They exude a sense of calm. Everything is accessible and within reach. Architects understand the comfortable height of a benchtop, the number of steps between two rooms, and the small ergonomic details that, collectively, make a home feel effortless to live in.
- They’re timeless. Trends come and go, but genuine architectural excellence endures. Frank Lloyd Wright’s Fallingwater was completed in 1936, yet it remains as compelling today as it ever was. Not all architecture from that era has aged as gracefully — and that’s precisely the point. Good architecture is exceptional. It doesn’t expire.
People feel all of this, whether they consciously recognise it or not. A home that is distinctly more comfortable is a home people want to stay in — and a home people are willing to pay more for.
Here’s the Proof
Consider two properties.
Both were built by quality architectural builders. Both sit within 1.32 kilometres of each other. Both are within 380 metres of public transport, and both are a short walk from a primary school.
Given these similarities, location alone cannot account for more than $400,000 in price difference —
Buyer’s Advocate, Aife from Raveche Property says, “For comparable properties, I’d generally expect that to sit closer to $300–400k depending on the exact location…”
Property One: 11 Woolhouse Street, Northcote. Land size: 348 sqm. The renovation was not designed by an architect. The home includes 4 large bedrooms, 2 ensuites, double garage parking, and a functional yard.
Property Two: 558 Rae Street, Fitzroy North. Land size: 549 sqm. The renovation was architect-designed. The home includes 4 medium-to-small bedrooms, one ensuite, a study bench in the hallway, double garage parking, and a functional yard divided into three distinct zones.
The Northcote house sold at auction for $2.6 million — above its advertised range of $2–$2.2 million.
Applying the same rate of $7,471 per sqm, the Fitzroy North home should have fetched approximately $4.1 million.
It sold for $5.1 million.
Aife explains, “If you’re working off a $1m difference between the implied land value and the sale price, I wouldn’t attribute that purely to design, but I also wouldn’t underplay it. A home of that calibre, particularly with a recognised architect, can reasonably account for a significant portion of the remaining uplift, potentially in the order of $500k+.”
It’s less about a fixed dollar figure for “good design” and more that it shifts the level of competition and ultimately the ceiling buyers are willing to reach.
Conservatively, that’s $600,000 more than comparable attributes would ordinarily command. The only meaningful difference is design.
When you assess each property on its merits — quality of finish, workmanship, and technology — they are remarkably well-matched. These two projects would have cost a similar amount to build. What sets them apart are the carefully curated decisions made by the architect: choices that, together, create a space that evokes something a standard brief simply cannot.
A set of side-by-side comparisons of the Fitzroy North house designed by Kennedy Nolan on the left, and the Northcote house on the right.
The Power of Exceptional Design
I should note that the design by Kennedy Nolan — responsible for the Fitzroy North home — may not be to everyone’s taste. But that’s not really the point. A truly distinctive property doesn’t need to appeal to everyone. It needs to resonate deeply with someone — enough that they can justify paying $800,000 to $1 million above what the location and room count alone would suggest. That’s the power of exceptional design.
This article isn’t a critique of the Northcote home, which is a perfectly comfortable property. It’s an illustration of the kind of lasting value a good architect can contribute — not just financially, but in terms of the daily experience of living there.
Longevity — The Final Test
And that brings me to longevity. Looking at the Northcote house: would you expect it to be celebrated in 10 years? Fifty? Seventy?
Compare that with something like the Liljestrand House in Hawaii — a carefully designed home that has endured precisely because it was designed with intention. In the same way, I’d expect the Fitzroy North house to stand the test of time. Its owners will come and go, but the home will continue to be loved.
I can’t say the same for the Northcote house. Without a strong design identity, it’s only a matter of time before its novelty fades. When the excitement of a new extension wears off and the space no longer sparks the same joy, the renovation cycle begins again.
That’s not just environmentally unsustainable — it’s expensive. Far more expensive, in the long run, than investing in quality design that remains loved for decades.
The Case Beyond the Numbers
The numbers make the case clearly enough. But beyond the numbers, the argument is even simpler: a well-designed home makes life better — quieter, calmer, more comfortable, and more yours. That’s worth something that’s genuinely hard to put a price on.
