High Stamp Duty Drives Renovations
Homeowners in Sydney and Melbourne are increasingly opting to upgrade their existing properties rather than move. Moving costs, including substantial stamp duty fees, can exceed $100,000. This trend is reshaping how Australians approach upsizing their living space.
“We’re seeing more homeowners choose to create additional space within their existing home rather than take on the cost and disruption of moving,” said Andrew D’Apice, a Build Consultant at Attic Group. This decision is largely influenced by the high costs associated with selling and buying property.
Stamp duty for a $1.5 million home purchase can reach $65,000 in NSW and $83,000 in VIC, making it a significant expense when relocating. This cost is often one of the largest upfront expenses that homeowners face.
Comparing Costs of Moving and Upgrading
Agent commissions, legal fees, and removalist costs can bring the total moving costs to over $100,000. In contrast, attic conversions or second-storey additions can range from $80,000 to $500,000, often adding more value to the property. These home improvements are seen as more cost-effective by many homeowners.
The December 2025 House Price Report from Domain shows Sydney’s median house price at $1,759,909 and Melbourne’s at $1,111,084. These high property values are influencing homeowners to reconsider moving and instead focus on enhancing their current homes.
Selling a $1 million property incurs costs exceeding $20,000. Agent commissions in Sydney and Melbourne generally range between 1.8% and 2.5%, equating to approximately $18,000 to $25,000. This excludes additional marketing and legal expenses. These figures highlight the financial burden of relocating.
On the purchase side, stamp duty increases progressively with property value. Additional costs, including conveyancing, inspections, and loan-related fees, typically add between $1,500 and $4,000, while removalist costs depend on distance and property access.
When combined with real estate agent commissions, legal fees, and removalist costs, the total cost of upsizing can exceed $100,000, prior to any increase in mortgage repayments. This substantial financial burden is leading many to upgrade their current homes instead.
One practical way to create additional space is through well-considered home improvements within the existing footprint. Roof space can be transformed into a functional living area or used for storage. Simpler storage solutions can free up existing rooms with minimal outlay, while more substantial upgrades and extensions can create entirely new habitable spaces.
Industry estimates from residential builders and renovation specialists in Sydney and Melbourne indicate that converting an attic into a habitable room, such as a bedroom or home office, typically ranges from $80,000 to $150,000+, depending on design and complexity.
