How much extra bedroom costs in your suburb

There are pros and cons when deciding between extending a home, or buying a new one with extra space, says South Property Group MD Nick Cowley. Picture: Supplied

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Need more space? A house with an extra bedroom in the same suburb can cost five or six figures.

New realestate.com.au figures show the difference between a three and four-bedroom home in 28 greater Hobart suburbs can range from as little as $8000 up to $370,000-plus.

South Hobart topped the chart where the median price for a three-bedroom home is currently $850,000, while a typical four-bedroom home costs $1.2235m.

Five suburbs had a price gap of over $250,000.

At the other end of the scale, the median prices for these property types in Taroona, West Moonah, and Kingston Beach were less than $15,000 apart.

Across just eight suburbs, the report showed the gap between a two and three-bedroom home started at $10,000 in Primrose Sands and went up to $220,000 in Sandy Bay.

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Megan Lieu.

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Realestate.com.au economist Megan Lieu said demand is highest for three-bedroom houses, followed by four-bedrooms, though this might reflect availability rather than preference.

“It’s difficult to pinpoint whether it is a preference or whether there are just more three-bedroom houses on the market,” she said.

South Property Group managing director Nick Cowley said extending an existing home is more expensive per square metre than building new, since it involves working around an existing structure.

“You will still need all the designs and approvals you would with a new build, and be looking in the vicinity of $80,000 to add a standard-size bedroom on a flat block,” he said.

“Building in Tasmania is roughly 20 per cent more expensive than mainland states, mainly due to freight costs across Bass Strait and smaller construction volumes, which means we miss out on the benefits of buying materials at scale.

“Terrain also adds civil costs, with most Tasmanian greenfield sites having more fall than, say, Victoria, which is largely flat. Labour costs are higher too, again due to lower construction volumes.”

A four-bedroom 1840s cottage at No.447 Macquarie St, South Hobart is on the market for $1.15m-plus. Picture: realestate.com.au

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No.118 Cascade Rd, South Hobart offers 1800s historic charm and modern convenience for $950,000-plus. Picture: realestate.com.au

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Mr Cowley said adding a bedroom would add value to a home, but how much varies depending on suburb, stock on market, demand, location and presentation.

“This is not the case for every home, so speaking to a real estate professional and builder to assess all costs and the potential outcome is critical before deciding between selling to upsize or commencing any works,” he said.

In most suburbs, homes with extra bedrooms command a higher median price, with bedroom count one of the biggest value drivers for a property.

However, land size, features and location also play a role — meaning smaller price gaps don’t necessarily signal that extra bedrooms are less valued.

Ms Lieu said average household size has been declining, now sitting at 2.5 people.

“Generally, in the longer term, we might see larger homes be less sought-after because of this,” she said.

“It doesn’t mean they’re less valuable — bedrooms are always a big factor in price — but in areas with larger homes, declining family sizes may mean less competition for them.”