Townsville renovators prefer properties requiring little work: HTW residential
Anecdotal evidence suggests that the supply of new stock being brought to Townsville market remains low as potential sellers hold off listing properties in the current environment, according to the latest Herron Todd White (HTW) residential report.
The valuation firm suggests that 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 residential report highlights where renovations are on the rise and the price points and outcomes those markets can expect.
"We are continuing to see sales occur, albeit at lower volumes compared to pre-COVID-19 and to date value levels appear to be holding," the valuation firm said.
The report states over the past 12 months there has been a noticeable increase in the number of house flippers in the market, typically operating within the five to eight kilometre radius of the city centre in suburbs such as Railway Estate, Currajong and Gulliver.
The buy in price for homes with renovation potential in these areas is typically in the low $200,000s with end values created in the high $200,000s to mid $300,000s depending on the extent and quality of the works undertaken.
"The rise in popularity of lifestyle home renovation shows such as House Rules and The Block are also contributing to the increase in renovation projects being undertaken by home owners," the valuation firm said.
The reason behind this increase could be contributed in part to the change-over cost from their current home to an upgraded property, the report suggested.
Furthermore, location seems to be a factor in the decision to renovate. Owners not wanting to take a gamble on location by moving are opting to stay where they are and renovate to accommodate their changing circumstances.
"Apart from upgrades to kitchens and bathrooms, we are seeing decks and outdoor living spaces added and house extensions to create more living space and utility," the valuation firm said.
"The renovator market is likely to continue tracking on its current course during 2020 with the cost of borrowing remaining low and a preference from buyers at this time for renovated properties requiring little work with the age old saying of 'I’d rather be opening a can of beer (or bottle of wine), than a can of paint' ringing true," the valuation firm said.
A renovated Queenslander cottage in South Townsville has recently been sold for $330,000.
The 36 Nelson Street home (pictured below) comprises three bedrooms, functional kitchen, study and expansive undercover patio area.
It features renovated bathroom, split air-conditioning and electric controlled gate.
A current listing is a three bedroom house in Railway Estate.
The 71 Ninth Avenue home (pictured below) comes with refurbished kitchen, renovated bathroom, open plan living and three generous bedrooms.
It also features fresher painted interior and exterior, rumpus room, and traditional features including high ceilings and light timber floorboards.
