Perth Monthly Market Wrap
Development in Perth’s housing market continues to grow through new construction and developments in Perth’s outlying areas, but development does not stop there. Perth’s inner suburbs are also getting their fair share of renovations and constructions.
Perth residents (especially in the more established areas) who have been in the area for a long period of time usually want to change their living spaces or lifestyles. There are multiple ways to achieve this, one is to look for a better dwelling. Whilst moving to a new home might be the most logical way to spark a change in lifestyle, it might not be the best course of action financially. We need to factor the costs for a new home, the cost of moving to the new home and all the other legal fees. This is where renovations will start to sound better and will be more friendly to your budget.
In 2010 and 2011, Australia experienced the peak of renovation works. The total value for alterations and home additions totaled to $5.9 billion. In 2017, $879 million was spent for renovation works which was 16.8 per cent lower than the previous year. According to John Gelvis, WA’s Executive Director for the Housing Industry of Australia (HIA) we should be expecting an increase in alterations as we get closer to 2020 because WA’s percentage for housing stock which falls within the ripe renovation age of 30-35 years old will be expanding.
There are lots of factors to consider in you decision-making process when you want to change or upgrade your living situation. To put it simply, there will be costs for stamp duty, legal fees and moving costs slapped on top of your purchase price, but renovating is not always the best way to go especially if you have a lot of changes in mind. You might just end up with a higher bill. In the same context, here are some averages on different types of renovations performed on different sections of a house.
- Major kitchen renovations start at around $20,000 and can climb to $50,000 depending on the kitchen size, changes to make and fixtures.
- Major bathroom renovations start at $15,000 and can go up to $30,000 again with multiple factors to affect the price.
Source: www.htw.com.au
