DO SMALL PRACTICE ARCHITECT DESIGNED RENOVATIONS IMPROVE CAPITAL GAINS IN THE MELBOURNE RESIDENTIAL PROPERTY MARKET?

Abstract

Architects have often relied on qualitative measures to argue the social value of the services that they offer communities. However, architects have struggled to articulate the quantitative and economic value that their services provide to individuals and communities. The research asked, what is the value of an architect-designed house renovation in property markets? The aim was to examine the financial impact of small practice architects. Despite a wide literature search, we found no peer-reviewed previous research that links the work of architects with projects and residential property markets. Given this research context and the seemingly problematic nature of directly comparing individual property assets, it was decided that a comparative “pooled” approach be adopted. Dat was gathered form a survey of architects and a national property database. It was found that when adjusted for time, the per annum average change in architects Pool 1 is 1.2% greater than non-architects Pool 2. Therefore, choosing an architect translates into a significant premium in growth in Capital Value relative to other asset classes.