Renovation ROI – Which Upgrades Add the Most Value Locally

Renovating can be one of the most effective ways to increase a property's value — but only when the upgrades align with local buyer expectations. In coastal markets like the Illawarra, not all renovations deliver the same return, and overcapitalising is a real risk.

Buyers here value lifestyle, functionality and low-maintenance living. The most successful renovations enhance how a home feels to live in, rather than simply adding cost or complexity. Understanding what local buyers respond to — suburb by suburb — is the key to achieving strong renovation ROI.

This article breaks down which upgrades consistently add value in the Illawarra, which ones often disappoint, and how to renovate with a clear strategy rather than guesswork.

1. Kitchens, Bathrooms and Layout – Where ROI Starts

Across almost every Illawarra suburb, kitchens and bathrooms remain the most influential areas for renovation. They shape first impressions, emotional connection and perceived value.

Kitchens: Functional, Light and Coastal-Neutral

In coastal markets, buyers aren't looking for showpiece kitchens — they want practical, bright spaces that feel easy to live in.

Upgrades that perform well locally include:

• stone or durable composite benchtops

• quality cabinetry in neutral tones

• modern but understated splashbacks

• good storage and pantry space

• improved lighting (especially natural light)

In suburbs like Woonona, Bulli and Corrimal, updated kitchens can significantly reduce days on Market and support stronger competition. In older housing stock, even modest kitchen updates often deliver solid ROI.

Overcapitalising with luxury appliances or bespoke finishes rarely improves returns — buyers value clean, functional and cohesive over premium branding.

Bathrooms: Clean, Coastal and Low-Maintenance

Buyers closely scrutinise bathrooms. Renovations that work best locally focus on simplicity and durability.

High-performing upgrades include:

• walk-in showers

• large-format tiles

• floating vanities

• neutral colour palettes

• good ventilation

In coastal areas, buyers are susceptible to moisture, mould, and maintenance requirements. Well-finished bathrooms signal that a home has been cared for — and reduce perceived future costs.

Suburbs with older homes, such as Dapto, Berkeley and Port Kembla, often see strong ROI from bathroom upgrades that modernise without overspending.

Improving Layout Without Major Extensions

Reconfiguring space can deliver excellent ROI when done strategically.

Common value-add changes include:

• opening kitchens to living areas

• improving flow between indoor and outdoor spaces

• creating defined dining areas

• improving bedroom proportions

These changes often outperform large-scale extensions in terms of cost-to-value uplift, particularly for family buyers.

2. Coastal-Specific Upgrades That Buyers Value

The Illawarra's coastal environment shapes buyer priorities. Renovations that account for climate, lifestyle, and maintenance realities tend to outperform generic upgrades.

Indoor–Outdoor Living

Coastal buyers strongly value a connection to outdoor space.

High-ROI upgrades include:

• covered alfresco areas

• decks or patios with coastal finishes

• large sliding or bifold doors

• Level Access to yards

In suburbs like Thirroul, Austinmer and Kiama, even modest outdoor improvements can materially increase appeal — particularly for family and downsizer buyers.

Low-Maintenance Landscaping

Buyers consistently respond to homes that look established but easy to maintain.

Effective landscaping upgrades include:

• simple lawn areas

• coastal plants suited to salt air

• defined garden edges

• improved drainage

• privacy screening

Highly manicured gardens may look impressive, butdon'tt always add proportional value.

Practical, low-maintenance outdoor spaces perform better over the long term.

Materials That Withstand Coastal Conditions

Illawarra buyers are increasingly aware of coastal wear and tear.

Upgrades that signal durability include:

• aluminium or treated timber joinery

• corrosion-resistant fixtures

• quality roofing and gutters

• updated windows and doors

In seaside pockets, these upgrades may not always add headline value — but they significantly reduce buyer objections and negotiation pressure.

Energy Efficiency and Comfort

While rarely the headline feature, comfort upgrades support buyer confidence.

Strong performers include:

• insulation

• ceiling fans

• efficient heating/cooling

• double glazing in exposed locations

These improvements are desirable to families and downsizers planning to stay long-term.

3. Renovations That Often Disappoint on ROI

Not all renovations add value — and some actively erode ROI when they exceed local expectations.

Overcapitalised Luxury Finishes

High-end finishes rarely deliver proportional returns in most Illawarra suburbs.

Examples include:

• luxury imported fixtures

• custom joinery beyond buyer expectations

• niche design features

• ultra-premium appliances

Buyers appreciate quality—but not at the expense of affordability or cohesion with the suburb.

Large Extensions Without Market Alignment

BiSignificantxtensions can be risky if they push the property well above local price ceilings.

Before extending, it's critical to ask:

• Does the suburb support this price point?

• Will the added space match buyer demand?

• Does the likely resale value justify the cost?

In many cases, targeted internal upgrades outperform significant additions.

Highly Personalised Design Choices

Renovations that reflect personal taste too strongly can limit buyer appeal.

Bold colours, unusual layouts or niche materials often reduce competition — and competition drives price growth.

Neutral, adaptable spaces consistently perform best.

Local Insight: Renovating With Illawarra Buyers in Mind

Across the Illawarra, the most substantial renovation ROI comes from:

• improving livability

• modernising tired spaces

• enhancing natural light

• creating indoor–outdoor flow

• reducing perceived maintenance

Renovations that align with coastal lifestyle expectations consistently outperform trend-driven upgrades.

Should You Renovate — or Buy Renovated?

This is one of the most common questions buyers face.

Renovating can deliver substantial value when:

• The purchase price reflects the property's condition

• Renovation costs are controlled

• upgrades align with buyer demand

• Timelines and disruption are manageable

Buying renovated often suits buyers prioritising certainty and lifestyle — but comes at a premium.

Understanding this trade-off is key to making the right decision.

Thinking About Renovating or Buying a Renovation Opportunity?

Renovation ROI isn't about spending more — it's about spending strategically.

The right advice before you renovate or buy can save tens of thousands and significantly improve outcomes.

At The Shoreline Agency, we help buyers and homeowners:

• Assess renovation potential before purchase

• understand the suburb price ceilings

• Identify value-add opportunities

• avoid overcapitalising

• Buy renovation-ready homes with confidence

📞 Contact The Shoreline Agency to discuss renovation strategy, purchase advice or value potential.📧 joel@theshorelineagency.com.au

See you on the Shoreline.