According to the latest report from Westpac, the value of residential renovations approved surged a whopping 40% to $600 million during the past 12 months as homeowners rushed in to upgrade their homes.
The number of household renovations has also more than doubled (147% increase) since 2010 amid skyrocketing prices.
Westpac’s general manager of retail Gai McGrath said favourable market conditions across Australia meant that many property owners had seen the value of their properties rise.
In response, many were tapping into the additional value to add extra rooms, additional features and to make cosmetic changes.
McGrath said this could be a smart investment strategy as it meant avoiding the costs associated with upgrading to a new property (eg: stamp duty).
“If you are renovating, not only are you improving and tailoring your property to suit your needs, but it can also add value to your property if you come to sell in the future.”
Sydney suburb Mosman topped the list of most renovated suburb in Australia with $76.3 million worth of renovation approval during the past 12 months.
Other suburbs that made the list include Point Nepean in Victoria with $41 million worth of renovation works followed by Melbourne suburbs Albert Park and Brighton.
| Top areas for renovation (by value) in Australia over the past 12 months (RP Data): | ||
|---|---|---|
| SA2 Region | State | Value of residential approvals 12 months to August 2014 |
| Mosman | NSW | $76,357,000 |
| Point Nepean | VIC | $41,765,000 |
| Albert Park | VIC | $41,371,000 |
| Brighton | VIC | $35,255,000 |
| Coogee - Clovelly | NSW | $33,468,000 |
| Richmond | VIC | $32,341,000 |
| Toorak | VIC | $32,083,000 |
| Hawthorn | VIC | $31,714,000 |
| Malvern - Glen Iris | VIC | $31,692,000 |
| Willoughby - Castle Cove - Northbridge | NSW | $29,259,000 |
