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Balconies, patios, alfresco living and other outdoor spaces have become the quintessential features of Australian living, with buyers willing to pay a premium for them.
A new analysis by Woodbury Furniture has found that Australian buyers across the country have been spending, on average, an extra $173,205 for a balcony or an outdoor area in their unit.
The report analysed the price difference between apartment listings with and without balconies across the five major capital cities and found that nearly one in four units were built without an outdoor space, making it a sought-after luxury that buyers are willing to pay extra for.
Woodbury Furniture interior design expert, Chris Catinaro, said balconies and patios have shifted from an optional feature to an essential amenity over the years.
“They serve as a private sanctuary, offering natural light, ventilation, and a much-needed connection to the outdoors,” Catinaro said.
“They have a dual benefit, acting as both a lifestyle enhancement as well as adding value to the property, which is exactly why I think we’re seeing such significant price premiums for homes with well-utilised outdoor areas,” he said.
Across the five major capital cities, Brisbane in the Sunshine State recorded the highest price gap between units with and without an outdoor area, with buyers adding on average $390,000 for a balcony, or 46.4 per cent extra for properties featuring balconies.
On average, Brisbane units without a balcony reached $848,969 compared to $1,242,906 with an outdoor space.
Woodbury Furniture said the state’s subtropical climate had made balconies and outdoor living a lifestyle, with Brisbanites using them daily.
Sydney followed suit with balconies, adding an extra 19.19 per cent value or $363,198, reaching an average unit price of $2,256,154 across all suburbs.
“With Sydney only becoming more densely populated, particularly in inner-city areas, it’s likely this price discrepancy will only strengthen as outdoor space becomes scarcer.”
Rounding up the top three, Adelaide recorded an extra 16.04 per cent for apartments with balconies, just shy of an extra 100,000 to an average of $689,68, with the city’s dry summer making outdoor spaces ideal for entertainment.
Melbourne recorded a smaller added value for balconies at $46,777 or 7.5 per cent due to the cooler and unpredictable weather conditions all year round, limiting balcony usage.
“Additionally, Melbourne’s wealth of public green spaces – from the Royal Botanic Gardens to the Yarra River Trails – means buyers tend to place less emphasis on private balconies compared to other capitals.”
Surprisingly, Perth was the only city where balconies devalued a property, with units recording on average a negative difference of -$33,203 or -4.85 per cent, compared to properties without a balcony.
Woodbury Furniture said the price difference could be attributed to multiple factors, including the numerous parks and beaches accessible all around the city and buyers wanting full yards or alfresco areas rather than balconies.
Catinaro said buyers should choose multifunctional furniture and durable, weather-resistant materials to make the most of their balcony, while incorporating greenery to provide privacy, cooling, and a calming atmosphere.
“From a design perspective, these areas dramatically improve the spatial experience, making compact apartments feel larger, more functional, and more serene,” Catinaro concluded.
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