Should You Build Up or Out? Renovation advice for homes
In today’s high-cost building market, more Tasmanians are choosing to renovate or extend rather than build new. Whether you’re considering a ground-floor extension or adding a second storey, making an informed decision can save you thousands and drastically improve your home’s function and value.
Ground-Floor Extensions
For many clients, a single-storey extension is the most practical solution. Ground-level builds are typically cheaper (around $3,500–$3,800/m² in Tasmania) and don’t require scaffolding or major structural changes. However, they do reduce usable land area — something to consider if you value outdoor entertaining or garden space.
The Hidden Costs of a Second Storey
While going up can preserve land and unlock stunning views, it often involves ripping off your roof, adding structural supports, building staircases, and dealing with additional noise-proofing and drainage considerations. The cost per square metre is usually higher than ground-floor options — and that’s before factoring in scaffolding or building on a steep block often making adding a second storey more expensive than extending on a ground floor.
Want help understanding what’s structurally possible for your home? Book a site analysis with Prime Design before you commit.
Planning, Permits & Pitfalls
Don’t overlook local council planning rules — especially in areas affected by overshadowing, bushfire overlays, or heritage restrictions. Even seemingly minor changes might trigger a discretionary planning application in Tasmania.
We manage all council approvals and sub-consultants for you, taking the stress out of the process.
Renovation Goals That Add Real Value
The most requested renovations in Tasmania right now include:
- A new master suite (bedroom + ensuite + walk in robe (WIR)
- Expanding the kitchen and living area
- Adding a deck or outdoor entertaining area
These projects offer tangible lifestyle improvements and excellent long-term return on investment — especially if you’re planning to stay in the home for the next 5+ years.
See examples of our past Tasmanian renovation success stories.
Choose the Right Builder
Renovating an older home can reveal hidden problems — like outdated wiring, weak footings, or even illegally built additions. A builder who specialises in renovations (not just new homes) can problem-solve on the fly and work closely with your building designer to keep things on track.
Listen to Episode 49 of the Building Design Prime Time Podcast for more real-world renovation tips.
Budget for Surprises
Always allow at least 20% contingency for unexpected costs — especially in older homes. While renovations can increase equity, especially if done to a high standard, you’ll want to plan carefully to avoid overcapitalising unless you plan to live there long-term.
For a checklist of what to budget and plan for, download our Free Renovation Planning Guide.
Don’t let the cost of building new deter you from creating your dream home. A well-planned renovation or extension — done with the right advice — can give you more space, more value, and a home that truly suits your lifestyle.
Contact the Prime Design team today to discuss your renovation plans or to book a pre-purchase site review.

