Eastern Melbourne sees a spike in renovation valuations: HTW residential
In the Eastern suburbs of Melbourne, the number of renovation jobs completed by Herron Todd White (HTW) has increased, according to the latest HTW residential report.
The valuation firm suggest in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade. This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.
The report notes the outer eastern ring has seen a spike in renovation valuations. Suburbs such as Kilsyth, Blackburn, Doncaster and Wantirna have had measured growth in jobs for renovations. Ranging from complete renovations, partial renovations and additional spaces being created to the homes.
A renovated character home in Blackburn has recently been sold for $1.435 million.
The 2A Forest Road home (pictured below)comes with formal and casual living and dining, four bedrooms, renovated stone kitchen, entertaining area and vegetable garden.
it is set just moments from school and public transport.
"The trend we are seeing, based on the ownership information provided by third party web service, Core Logic, is that it is mostly current owners who are renovating.
"Whether it is cabin fever or having a surplus of free time due to being isolated is speculative. What we do know is that there has been a significant increase in renovations being undertaken," the valuation firm said.
Due to the eastern suburbs being an established, older area with a range of Italianette, Victorian, Edwardian and Art Deco homes, the opportunity for renovation is a lot higher than suburbs in developing areas.
In some cases, it is almost more expensive to renovate an old home with structural issues than building a new dwelling, the report noted.
Though, due to the aforementioned style of homes being omnipresent in the Eastern suburbs, there are more restrictions for what is able to be renovated and planning approval can be more difficult and time consuming to attain.
Buildings that are heritage listed and suburbs with heritage overlay encumbrances can encounter obstacles when wanting to extend and renovate.
Largely because most heritage buildings require the front facade to structurally remain the same and there be no visibility of additional levels added to the home from the street frontage. This can greatly escalate building and labour costs.
"Depending on how far East you travel to buy a home with renovation potential, the outer East would have houses available with a purchase price of $700,000 and $1.2 million," the valuation firm said.
A big trend seen in Glen Waverley and Mount Waverley is for buyers to purchase run down properties and build a new home with four or five bedrooms.
A current listing is a four bedroom house in Mount Waverley priced at $1.38 million to $1.49 million.
The 1 Wills Avenue home (pictured below) comes with formal lounge, kitchen/meals area, family room and double carport.
It has future potential as a site for building a new home.
"While this isn’t a renovation, it is an interesting trend seen over the last couple of years," the valuation firm said.
The effect of COVID-19 hasn’t slowed down the construction industry completely. There are still many investors who are eager to build and develop even through this uncertain time.
"We are seeing basic renovations begin at prices around $150,000 to $200,000 and more substantial renovations priced around $400,000-$500,000.
"Sub-contractors and trades are in hot demand and renovations are definitely sought after during this period of isolation," the valuation firm said.
