A renovations bonanza is breathing new life into some of Sydney’s oldest suburbs as once-wrecked homes get transformed into glitzy manors.
Nearly A$3 billion (NZ$3.17 billion) was spent on home renovations in NSW, Australia, last year — up 13 per cent from five years ago — Australian Bureau of Statistics data shows.
And property experts forecast it will be even more this year, as Sydney’s falling real estate prices encourage homeowners to upgrade their existing properties rather than chance a sale.
Recent sales data showed selling property has become harder in the current market.
Start your property search
The median price of a home fell 8.9 per cent over the past year, while property listing numbers surged to a six-year high.
A Camden St home in Newtown before and after it was renovated. Photo / news.com.au
Demand for property has also fallen as would-be buyers struggle to get financing from cautious banks, leaving many properties lingering on the market unsold.
Realestate.com.au chief economist Nerida Conisbee said, in this environment, homeowners often viewed renovating as a safer option.
“The cost of moving is high in Sydney,” Ms Conisbee said. “Most buyers will have to pay A$20,000 or A$30,000 in stamp duty — some will decide to use that money for a renovation instead.”
The average renovation spend for homeowners last year was A$25,000, up from A$23,000 in 2017, a Houzz and Home Australia study found.
12 Clara Street, in Erskineville, Sydney, before it was renovated. Photo / news.com.au
The Clara St home after it was renovated. Photo / news.com.au
More than 80 per cent of homeowners were funding the renovations with cash.
Kitchens were the most popular room to renovate, followed by living rooms and bathrooms.
Investment adviser John Fitzgerald said renovation activity also got a boost from investors doing quick flips in the hope of making a profit — but added those buyers were often taking a risky gamble.
“They see people on TV throwing in their day jobs and walking away with $400,000 profits after three months — it’s not reality,” he said.
Many of Sydney’s most dramatic renovations remain for sale.
A renovated three-bedroom terrace on Clara St, Erskineville has been listed since September with its price since cut from A$1.42 million to A$1.35 million.
A fixed-up home on Malakoff St in nearby Marrickville was listed at A$1.4 million, with the price later dropping to A$1.3 million before the home was withdrawn from the market.
But others sellers have been more successful.
A renovated home on Camden St, Newtown recently sold for A$1.64 million — nearly A$700,000 more than what the sellers paid for the property in 2016. They had invested about A$350,000 in the renovation, turning what was once a stripped down home without a functioning roof into a modern designer haven.
A terrace at Iris Street in Sydney's exclusive Paddington suburb before it was renovated. Photo / news.com.au
The terrace after the renovation. Photo / news.com.au
Another of Sydney’s most jaw-dropping renovations was the transformation of a once uninhabitable Paddington terrace at Iris St into a glitzy abode.
The roof and walls were collapsing when it was purchased in 2016, but a nearly A$600,000 renovation has restored it and it recently hit the rental market at just under A$1000 a week.
Renovator Casey Scott redesigned a four-bedroom house in Castle Hill with the help of his friends, who together form property collective Kinwolf.
Mr Scott bought the home for A$1.4 million and sold it for just under A$1.7 million at the end of 2018.
“The market was turning but we still didn’t want to slump on design,” Mr Scott said.
“It was a risk but we managed to push the boundaries. It was a great home and we were very happy with the result.”
What the Scott family's Sydney home used to look like. Photo / news.com.au
The Scott family at the Castle Hill property after the renovation. Photo / news.com.au
Selling agent Sunny Gandhi of The Agency said there was strong interest in renovations projects in the Castle Hill area due to the Sydney Metro Northwest rail line due to open later this year. “They are also investing millions into upgrading Castle Towers shopping centre. It’s creating a lot of jobs, so there is an incentive for many to stay in the area,” he said.
MBA chief economist Shane Garrett said banks restrictive lending policies were also encouraging more people to renovate.
A Sydney bedroom before it was renovated. Photo / news.com.au
And then after the renovation. Photo / news.com.au
“The tightening of credit conditions have prevented many families from being able to move house over the past year,” Mr Garrett said.
“More detached houses were built in late 1980s Australia than at any time before or since. More and more of these will be begging for major renovations work in the coming years.”
- news.com.au
