Melbourne real estate research company, Secret Agent, has conducted research that found swimming pools can add at least $140,000 to the value of a Melbourne property – with some drawing an extra $450,000.
Secret Agent researches the Melbourne property market with the aim of improving prospects for purchasers, vendors and agents.
They looked at ten suburbs in Melbourne’s inner East and South East: Kew, Hawthorn, Hawthorn East, Toorak, Kooyong, Armadale, Malvern, Glen Iris, Camberwell and Brighton. The study was limited to only include three to five bedroom houses for a more realistic representation of a pool’s value.
On average, a swimming pool added between 10 per cent and 16 per cent to the value of a house, with the lowest expected value created being approximately $140,000.
Even more for some suburbs
However, this varied between suburbs, from as low as six per cent in Camberwell, up to 35 per cent in Hawthorn East. In Kew, houses that featured a pool were expected to sell for $450,000 more, which is a premium of about 30 per cent. In Hawthorn, a pool is expected to only add $180,000 (11 per cent) to the value of a property.
There are a few explanations for the differences in added value. For example, a big house may have other extensive renovations aside from a pool; such as a cellar, theatre room, tennis courts and sculptured gardens. Additionally, the number of car spaces and the school zoning would have an impact on sale price.
Secret Agent says that a swimming pool can be a wonderful addition, satisfying our instinctive need to be close to water, while also being a good investment as the lowest expected additional value is around $140,000.
How much would you pay?
There are also interesting findings at the Lendi real estate site, showing demographics for people interested in buying properties with pools, and how much more they would pay.