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Motivated by renovation shows and the warmer season, home owners are taking on the challenge of renovating, with Brisbane and Adelaide buyers competing the most for fixer-uppers.
Experts have predicted a surge in interest in renovations this spring as owners and buyers are inspired by property transformations seen on TV shows to add value to their properties.
Raine & Horne Real Estate Group has reported a surge in interest in fixer-upper dwellings, following the growing popularity of shows such as The Block and Grand Designs Australia, which play a significant role in driving demand for renovated homes.
Raine & Horne Group chairman Angus Raine said this time of year typically brings forth plenty of interest in renovations in addition to the usual surge in property sales.
“It is no coincidence that The Block hits our screens each spring, as this is typically the peak property season across Australia – and the start of the warmer weather, which often sees a spike in renovation activity,” Raine said.
Fixer-upper homes usually include renovating the bathroom and kitchen.
“There is no doubt that homes ripe for renovation often sell for less than more contemporary properties, so buyers may be able to score a quality property at a reasonable price and add value through improvements,” Raine said.
Nationwide, Raine & Horne said that Brisbane has become a market for renovators and new builds, especially for entry-level homes.
Raine & Horne Brisbane Central agent, Des Besanko, said that in Brisbane’s CBD fringe, buyers have been snapping up older homes due to scarce land and lower costs, while building new costs around $800,000 in outer suburbs like Springfield and Ipswich.
“The other option for a relatively affordable entry-level home is to buy a ‘renovator’s delight’ and do it up. On a quality renovation, every $1 spent can drive a $2 uptick in the property’s value,” Besanko said.
Similarly, in Adelaide, competition has been intensifying for fixer-uppers, particularly among first-time buyers willing to undertake renovations themselves, driving prices higher.
In Sydney, director of Raine & Horne Liverpool, Vince Labbozzetta, said that fixer-uppers in the south-west suburbs have mostly attracted first home buyers, while developers have typically preferred larger parcels of land more suitable for duplexes.
Labbozzetta said that buyers who have time to renovate can see a significant return on their investment, with even partially renovated homes seeing an increase in value.
“A lot of people want to move straight into a completed property. However, renovators with time up their sleeves can make money on a property – often at least a profit of 10 per cent,” Labbozzetta said.
The network said that buyers interested in renovating to add value to their future property should consider key factors such as local infrastructure improvements and gentrification in neighbouring areas, which can boost a suburb’s value.
“While the time, effort and cost involved in renovating a home should not be underestimated, buyers need to ensure a renovation will add value,” the network concluded.
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