Home renovation works on the rise in Gold Coast North East: HTW residential
In the Gold Coast north-east area from Southport to Hope Island and out to the M1, home renovation works appear to be on the rise, 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.
The report notes investors conducting any more than cosmetic works such as painting and floor coverings are rarely seen, resulting in the owner-occupiers conducting the majority of renovation works.
"These owner-occupiers are opting to renovate rather than relocate, with the supplementary aim of manufacturing equity within their property," the valuation firm said.
The central and north location is an established area and discussions with home owners conducting renovation works is that they like the area in which they live and for the cost of relocation, the decision to renovate or extend their existing dwelling is a more desirable option.
Furthermore, in areas such as Southport and Labrador, the option to increase income through granny flat extensions or to build in self-contained flats underneath high set homes is also being exercised due to the opportunity of an increased yield on the property, the report noted.
A renovated ground floor apartment in Southport has recently been sold for $230,000.
The apartment at 3/3-5 Norman Street (pictured below) comprises one bedroom, one bathroom, separate laundry and updated kitchen.
It is situated within a managed complex with in ground pool and spa.
A new listing is a large renovated duplex in Labrador priced at $775,000.
The six bedroom, four bathroom home is situated at 1&2/248 Central Street (pictured below).
It comes with renovated kitchen, courtyard and parking space for 6 cars.
At present, due to COVID-19, the current economic climate appears to be uncertain with limited quality properties on the market and owner-occupiers choosing to use their spare time to improve their homes, in which they are spending more time.
"However, we do caution renovators not to over capitalise as cost does not necessarily equal value. Be mindful of the median price point in your area as well as what drives purchasing decisions for the broader market," the valuation firm said.
"For example, installing a $10,000 water feature in a $400,000 house may not equate to a good return on investment if you plan to sell the property in the short to medium term.
"A recommended exercise is to outline your renovation plans and then look, with an unbiased opinion, at recent sales in the area similar to your proposed plans in order to justify the expense you are considering."