How Architectural Expertise Increased a Home’s Value by $700k

A Case Study of 197 Underwood Street, Paddington

When planning a home renovation or extension, managing costs, meeting timelines, and maximising property value are often top priorities. Engaging an experienced architect can make all the difference, from early cost assessments to the final design implementation. The transformation of 197 Underwood Street, Paddington, demonstrates how architectural expertise can unlock potential and add significant value to a property.

The Starting Point: A Hidden Gem with Challenges

Purchased in 2020 for $1.1 million, this narrow terrace home presented a typical Paddington challenge: small, enclosed rooms with limited natural light and minimal connection to the outdoor space. To unlock its full potential, the owners enlisted Jodie Dang Architects to design a ground-floor extension, reconfigure the layout, and enhance natural lighting.

“The home had great bones, but the internal layout was dated, dark, and disconnected from the garden,” explained Jodie Dang, Lead Architect. “Our goal was to maximise the usable space while respecting the home’s heritage and bringing in much-needed natural light.”

1. Site Assessment and Budget Planning

Effective budgeting starts long before the design process begins. At 197 Underwood Street, the architects conducted a thorough site assessment, considering the home’s heritage listing, narrow structure, and the owners’ vision.

The site’s heritage conservation status required a careful balance of preserving its character while introducing modern functionality. The architects collaborated with local council authorities and heritage consultants to ensure the design met planning regulations while enhancing the home’s liveability.

“Our approach was to look beyond the site’s limitations and see its potential,” said Jodie Dang. “We worked closely with the owners to understand their lifestyle and created a design that expanded the living space while staying true to the home’s historic charm.”

Initial construction costs were estimated at $350,000 + GST, covering demolition, extensions, and internal reconfiguration. The architects also recommended a 20% contingency fund to cover unforeseen issues common in older properties.

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2. Why a Contingency Budget Matters

Older homes can hide costly surprises, from outdated foundations to structural damage. Paddington’s heritage-listed terraces, in particular, are prone to unexpected challenges due to their age and layered construction history.

“During renovations of older properties, surprises are almost guaranteed,” Jodie shared. “You might uncover deteriorated beams, water damage, or outdated electrical systems that need urgent upgrades. Having a contingency budget means you’re ready to adapt without stalling the project.”

The homeowners followed this advice, setting aside 20% of the total budget for contingencies. This foresight allowed them to proceed confidently, knowing unexpected expenses wouldn’t derail the project.

3. Creative Design Solutions: Maximising Light and Space

The primary design challenge was bringing light into the deep, narrow floor plan while respecting the home’s heritage. The original layout lacked direct access to the rear garden, and small rooms restricted the flow of light and air throughout the home.

The architects proposed a ground-floor extension featuring large sliding doors and floor-to-ceiling windows, creating a seamless indoor-outdoor connection. In the kitchen and dining areas, expansive windows framed garden views and flooded the interior with natural light. Skylights and high ceilings further enhanced brightness and spaciousness.

“Good design isn’t just about aesthetics; it’s about functionality,” said Jodie Dang. “We wanted the home to feel light, open, and connected while ensuring every inch was used efficiently.”

The interior layout was completely reconfigured to improve circulation between rooms. Strategic storage solutions, built-in shelving, and custom cabinetry ensured that no space went to waste.

4. Client Experience: From Doubts to Dream Home

Before working with Jodie Dang Architects, the homeowners consulted several other architectural firms. Many architects dismissed the project as too difficult, with some even calling the site a “dud” due to its narrow structure and heritage restrictions.

“After several discouraging consultations, we were beginning to think our dream home wasn’t possible,” the homeowners recalled. “But Jodie and her team saw what others couldn’t. They didn’t just see the limitations; they saw possibilities.”

The architects’ fresh perspective and innovative design solutions quickly won the homeowners’ trust. “We were amazed by what the space could achieve after seeing the concept design,” they shared. “What felt cramped and dark was transformed into a bright, spacious, and functional home.”

5. Managing Construction and Timelines

With the design and budget finalised, the architects took on the critical role of project management, acting as the main point of contact between the homeowners and builders. They oversaw the construction process, coordinated contractors, and ensured the project stayed on track.

“We believe clear communication is the foundation of any successful renovation,” said Jodie Dang. “We kept the homeowners updated every step of the way, ensuring there were no surprises.”

The estimated construction timeline was 6-9 months, though external factors like weather and material availability could impact the schedule. By managing day-to-day operations and resolving issues quickly, the architects kept the project running smoothly.

6. A Profitable Transformation: $700,000 Value Increase

The results spoke for themselves. After completion, the renovated home—now boasting modern interiors, improved natural light, and seamless garden access—sold for $1.8 million in 2024, a remarkable $700,000 increase over its 2020 purchase price.

“The project exceeded our expectations in every way,” the homeowners said. “Not only did we get a home we love living in, but the financial return far surpassed what we could’ve hoped for.”

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Key Takeaway: Architects as Value Creators

The 197 Underwood Street case study underscores the critical role architects play in managing design, budgeting, and construction challenges. From initial feasibility assessments to delivering a beautifully finished home, architects help homeowners create functional, visually stunning spaces while boosting long-term property value.

“An architect is more than a designer—they’re a project partner, budget advisor, and creative problem-solver,” concluded Jodie Dang. “By working closely with homeowners, we create spaces that are not only beautiful but also practical and enduring.”

Thinking of Renovating or Buying?

‍Contact Jodie Dang Architects for an Initial Site Visit or Pre-Purchase Consultation to explore what’s possible for your home and budget.