Erskineville Terrace – Smart Design For Compact Living
For this narrow, 85m² terrace in Erskineville, our client had a clear goal: to maximise the property's value and rental potential through a carefully considered renovation. Rather than simply updating the finishes, we wanted to completely rethink what the home could offer, making the most of every square metre while keeping the construction budget and long-term investment in mind.
Originally a single-storey home with just two bedrooms and one bathroom, we transformed the property into a two-storey residence with three bedrooms, two bathrooms and a dedicated study. This significantly increased the functionality of the home, making it more appealing to a wider rental market without requiring a larger property footprint.
One of the biggest challenges was bringing natural light into the narrow terrace. The existing home had very little connection to the rear, and because the property was located within a Heritage Conservation Area, introducing new windows along the sides of the house was restricted. Rather than allowing these constraints to compromise the design, we introduced a long skylight directly above the new staircase leading to the first-floor addition. This became a defining feature of the home, drawing natural light deep into the interiors and making what could have been a dark, enclosed space feel bright and open.
With the property intended as a rental investment, we were also conscious of where to spend and where to save. Our approach was to select good-quality, durable materials that would create a high-end feel without the expense of top-of-the-range finishes. In the kitchen, sage green cabinetry and a Quantum Quartz benchtop in concrete matte create a sophisticated, contemporary look. We also introduced a smoked mirror splashback, specifically chosen to reflect light and create the illusion of greater depth, making the compact kitchen feel much larger and more open than its actual footprint.
Every centimetre of the compact layout was carefully considered. We designed a U-shaped kitchen with integrated seating to make the most of the available space, while custom joinery beneath the timber staircase accommodates storage, appliances and laundry facilities. By combining multiple functions into one carefully designed area, we were able to keep the living spaces feeling open and uncluttered.
In the new rear addition, we introduced Pandomo flooring to create a subtle distinction between the original terrace and the contemporary extension. As heritage architects, we often like to celebrate the relationship between old and new rather than trying to disguise it. Pandomo, a decorative cement-based flooring system, was particularly suited to this project because it allowed us to achieve a seamless floor level between the existing and new spaces while introducing a beautiful sense of movement and texture to the contemporary addition.
Another significant advantage for our client was that we were able to act as the architect, interior designer and heritage consultant throughout the project. Rather than engaging separate consultants who may have different interpretations of the design or heritage requirements, we were able to approach the entire project with one cohesive vision. This meant heritage considerations were incorporated into the design from the very beginning, avoiding unnecessary redesigns, reducing additional consultant costs and helping streamline the approval process.
For us, this project is a great example of how thoughtful architectural design can add real value to a property without relying on extravagant finishes or an excessive budget. By unlocking an additional level, improving natural light, creating a more functional layout and carefully balancing cost with quality, we transformed a modest terrace into a contemporary home designed to maximise its long-term rental appeal and investment potential.
Photography: Lisa Loi
