Sydney real estate: renovated properties attract premium prices

Property prices may fall in much of Sydney, but finding “quality” renovated homes has become a struggle and impacting the way other properties are traded.

Towering construction costs have made fully renovated Sydney homes a scarce commodity and many are switching hands for record prices, despite the cooling property market.

A report from appraiser group Herron Todd White revealed that lengthy project delays, rising material costs and challenges in getting crafts on-site discouraged homeowners from embarking on new improvements.

Others abandoned their projects before the planned works were completed and relisted the properties for sale.

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It has resulted in a shortage of fully renovated homes for sale at a time when home seekers are increasingly opting for turnkey properties where no work is required.

Ray White, chief economist Nerida Conisbee, said the few renovated homes available attracted strong competition.

“Finding a renovated property can be challenging in many areas and these are the properties most buyers want,” she said.

“Few people are willing to renovate. There is an awareness that traditions are harder to come by and more expensive to build.”

Herron Todd White revealed in his latest monthly market survey that a major reason homeowners often struggled to find craftsmen willing to do renovations was because of more lucrative jobs on new residential areas in areas such as southwestern Sydney.

“Traders are drawn to the greater tasks of building a home that provides financial security and stability compared to one-time renovations,” the report said.

Rising material costs and global supply chain disruptions also made it harder for crafts to profit from jobs they quoted months ago, and many smaller companies closed stores, HTW reported.

Homeowners who recently sold completely renovated or newly built homes in established suburbs often received record prices.

A recently completed home on Tripod St in Concord sold off the market this week for $7.7 million — a new record for the inner western suburb.

And in Earlwood, a duplex sold for just over $2.17 million, a suburban record for a suburban attached home. Similar records were set in Kensington and Kingsford.

Agent Dib Chidiac, who sold the Concord home, said buyers who wanted modern homes in older suburbs would have to compete with cashed-in home seekers willing to spend a lot of money.

“They will pay top dollar because they don’t want to do the job. It’s very different from what we’ve had in the past two years,” said Mr Chidiac.

“What we had then was a lot of people renovating because prices were rising at this insane pace. Some people who had to move to a bigger house instead tried to expand their house to avoid stamp duties. Now people think that renovating is becoming too difficult.”

Adrian Tsavalas, director of real estate group Adrian William, said buyers now had the attitude that “renovator’s delights” were best left to professional builders.

Originally published as refurbished properties attract premium in Sydney as rising construction costs discourage new projects

Read related topics:Sydney

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