Inner Sydney renovations on the rise: HTW

Inner Sydney renovations on the rise: HTW
Inner Sydney renovations on the rise: HTW

Sydney has been a hot spot for renovators over the past several years which is largely due to high demand levels, low interest rates and record capital growth in underlying value levels, according to the latest Herron Todd White (HTW) residential report. 

"While we have seen this renovation trend booming across most property types and locations throughout Sydney, we are now starting to see some property types, price points and locations reacting differently to the changing markets and property cycle," HTW suggested. 

It appears that renovation and construction have been on the rise over the past year or two within inner Sydney. Generally additions or extensive renovations are more popular on the inner eastern side of town (Darlinghurst, Paddington, Surry Hills), often with significant architectural prowess.

"As inner Sydney is an expensive area, renovations or additions would be more appealing to some than the costs and hassle of moving," the report suggested. 

On the inner western side of town, whilst renovations and additions are still common around the very inner areas (Newtown, Camperdown, Glebe, Chippendale) as you get further out to Leichhardt, Lilyfield and Strathfield, knockdown and rebuilds are more common due to larger blocks, fewer heritage restrictions and better accessibility (from a materials perspective).

HTW noted that Darlinghurst has seen quite a few well renovated homes sell recently. Darlinghurst neighbours the superior suburbs of Paddington to the east and Potts Point to the north, with inferior Woolloomooloo to the north-west and slightly inferior Surry Hills to the south.

A recent example of a well renovated home is 4 Thomson Street, Darlinghurst (pictured below) which sold in original condition for $1.4 million in July 2015 and after being fully renovated, sold again for more than double in June 2018 for $2.9 million. While this represents a very strong increase, it needs to be noted that this time period also had the benefit of record capital growth regardless of renovations.

Inner Sydney renovations on the rise: HTW

 4 Thomson Street, Darlinghurst (before)

Inner Sydney renovations on the rise: HTW

 4 Thomson Street, Darlinghurst (after)

In the inner city, some of the easiest ways to add value would be to utilise rear lane access for parking or add an attic level bedroom or en-suite. Wide terraces or detached dwellings (where available) are preferred. Given that these areas are quite expensive, a typical buy-in price point could be something similar to 43 Craigend Street, Darlinghurst (pictured below) which sold for $1.85 million in May 2018.

Inner Sydney renovations on the rise: HTW

This is an original terrace in close proximity to a busy road. Many areas of inner city Sydney are heritage conservation precincts, meaning that the façade is not able to be altered and most additions are required to be unobtrusive.

Some of the suburban community facilities and infrastructure helping drive construction in these established areas include the light rail construction in the CBD/Surry Hills, gentrification of Kings Cross and surrounding areas and proximity to the CBD which generally facilitates good work and family life balance.

Tags: 
Renovation Sydney

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