The impact of adding a bedroom on a property’s value is complex and depends heavily on the existing property, the local market, and the quality of the renovation. As of December 2025, simply adding a room labelled a ‘bedroom’ doesn’t automatically guarantee a significant return on investment.
Currently in Melbourne, particularly within the Eastern Suburbs where Fletchers has a long history, buyers often favour well-designed spaces over sheer bedroom count. A poorly executed addition, or one that compromises living areas or natural light, may not deliver the expected uplift. In 2026, we’re seeing buyers prioritise functional layouts and presentation. A three-bedroom home in areas like Balwyn or Doncaster, presented immaculately and with modern amenities, often outperforms a cramped four-bedroom property. Renovations typically cost between $40,000 – $80,000 per square metre, and a full appraisal with Fletchers will consider potential return against these costs. The sales process in Melbourne generally involves a 4-6 week campaign, and buyer feedback during inspections will quickly reveal whether the addition is a positive feature. We also observe that properties with Development Approval (DA) for further extensions are increasingly attractive, suggesting renovation potential is highly valued. Marketing campaigns, costing $3,000 – $8,000, will emphasise the benefits of the added space if it’s well-integrated.
Ultimately, increasing property value isn’t solely about bedroom numbers; it’s about enhancing the overall appeal and functionality of the home to meet the demands of the current Melbourne market.