Instead of Moving Why Not Add a Second Dwelling ?

More homeowners are adding secondary dwellings to their properties as renovation activity picks up. NAB data shows renovation lending rose 21% in 2025, with many borrowers using the funds to build granny flats and make better use of existing land.

This trend is relevant to established Melbourne areas such as Boroondara, Darebin and Whitehorse, where block size, access and planning controls can influence whether a secondary dwelling is feasible. 

NAB executive Denton Pugh says homeowners are increasingly looking to get more out of their properties, whether that is creating extra space or generating income.

“They’re becoming a long-term investment that strengthens the value of the property.”

The impact on value depends on how well the additional dwelling works on the site. A well-designed granny flat with proper access and separation can improve overall utility and appeal, while poor layout, limited access or planning constraints can limit that benefit.

In these types of areas, this can change how a property is assessed. Instead of being viewed as a single dwelling, it may be considered as a dual-income or multi-use asset, which can influence how value is determined.

#propertyvaluations #Melbourneproperty #renovations

Clear, independent valuation advice is essential when property improvements change how an asset is used or valued. To obtain evidence-based assessments across Boroondara, Darebin, Whitehorse and surrounding Melbourne councils, call Mason’s Valuation Office on 0417 741 481 or visit https://propertyvaluation.melbourne/about-us/#contact.