Mosman, Portsea and Albert Park are reno central

Mosman, the Point Nepean region and Albert Park have notched up the highest level of residential renovation approvals over the past year.

The number of Australian home owners undertaking renovations on an annual basis has hit a recent four year, post-GFC high, according to research released by Westpac.

Some $600 million worth of residential renovations and conversions were approved in August 2014. 

Westpac noted of home owners who renovate to make extra room, more than a third choose to renovate instead of move as they do not want to pay stamp duty fees (36%) or do not want the inconvenience or cost of moving home (36%). 

But the key is that 71% simply want to stay in the same area.

The Westpac Renovation Report, compiled by RP Data and Sweeney Research, has Sydney's Mosman with $76 million as the most renovated location (by value approvals) in Australia. No details are given as to the number of houses under renovation.

The Victorian Point Nepean region - around Portsea and Sorrento - came in second with more than $41 million in residential approvals over the past year for the pricey location at the most westerly point of the Mornington Peninsula, in Victoria.

“Favourable market conditions across Australia means that many home owners have seen the value of their properties rise.

"As a result, one quarter of Australians have been able to service additional borrowings to tap into this added value and extend or improve their home further and stay in their preferred location rather than moving to a bigger home elsewhere,” said Gai McGrath, Westpac general manager of retail banking.

While 64% of renovators still finance their home improvements through savings, some 26% of those aged 18-54 are choosing to finance their renovations by increasing or topping up their home loan.

“Existing home owners who may once have looked to upgrade into a new home are choosing instead to renovate, adding desired rooms, features and cosmetic changes," Gai McGrath said.

“This can be a smart investment strategy as it means avoiding the costs associated with upgrading to a new home, like moving services and stamp duty.

“If you are renovating, not only are you improving your current surroundings and tailoring your home to suit your needs, but it can also add value to your property if you come to sell in the future.”

Top areas for renovation (by value) in Australia over the past 12 months (RP Data):

RP Data compiled Australian Bureau of Statistics dwelling approvals data from 2004 to present, using projects where the value of work done was at least $10,000.