Gladstone sees limited renovation activities: HTW residential
There has been little change in regard to COVID-19’s impact on Gladstone’s property market, according to the latest Herron Todd White (HTW) residential report.
The valuation firm suggests 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.
"It’s just about business as usual for our market. Sales continue to tick over with no evidence of any further declines in value," the valuation firm said.
The HTW report notes rental vacancies remain tight with a vacancy rate of 1.6%, the lowest they have been since the peak of the market.
Affordability is still the key driver in our market and while we are not out of the woods just yet, it’s looking more and more likely that COVID-19 will be remembered as just a very minor blip on the radar for Gladstone’s residential market.
In terms of renovations, there has really been very limited activity in the past 12 months, apart from every man and his dog doing minor maintenance or landscaping work during lockdown, the report noted.
The reason for the lack of renovation work is really unknown. Despite the market looking up, a significant portion of homeowners in Gladstone would have negative equity in their homes from the market downturn, so in essence cannot afford to renovate.
"We’ve seen the odd, full internal renovation, in most cases of a mortgagee sale property that is in a state of disrepair and that sold towards the bottom of the market range.Completing only minor cosmetic works to these types of properties adds considerable value to the property," the valuation firm dais.
While not quite considered a renovation, construction of new sheds on existing properties has surged over the past several months.
"The reasoning behind this sudden increase in sheds being built is also unknown. Interestingly, the size of the sheds is also increasing," the valuation firm said.
Once upon a time, a six metre by six metre shed in the back yard was the norm, however this is no longer the case. Longer and wider sheds with higher clearance are becoming the norm along with features such as mezzanines and internal bathrooms.
"We have also noticed a distinct uplift in pricing for sheds in the region. Costs appear to have jumped about $100 per square metre in the past few months and this sudden jump in cost has not yet been reciprocated in the added value of a shed to a property."
An original three bedroom home in West Stowe with a renovated kitchen has recently been sold for $278,000.
The four bedroom, one bathroom house is situated at 1130 Calliope River Road (pictured below).
It features hardwood timber floors, three bay shed and mountain views.
The property was last sold in 2012 for $60,000.
A new listing is a renovated home in Sun Valley priced at $179,000.
The three bedroom, one bathroom house is situated at 2 Franmaur Street (pictured below).
It comes with three bedrooms, lounge and dining areas, functional kitchen and covered entertainment area.
