Gippsland opting for renovations and extensions due to high land prices and building costs: Herron Todd White

The residential market in Sale and Traralgon is slow to stable with minimal movement in prices, according to property valuers Herron Todd White.

The valuers say for the best four to six year medium growth, the average buyer would be looking at the $200,000 to $400,000 price bracket.

The lower end of house prices, $200,000 and under, has slowed due to the removal of the first home buyers grant.

The valuers say the top end, $500,000 plus, is seeing vendors getting hurt due to over capitalising causing a sale loss, however a property in a strong location has the best chance of growth in this price range.

Herron Todd White say there has been an increase in renovations and extensions among home owners due to the high cost of land prices and building costs.

Home owners are staying put for a short term and then make a profit in the four to six year period.

The valuers say another option to consider  is the established home at the top end.

"With the high building costs, an established house at the top end may see growth in that four to six year period and I can’t see building costs coming down too quickly."

The valuers say a 1980s brick house in a good location is approximately $250,000.

They say this property should be renovated and the home owner shouldn't sell until five years later.

The valuers say buying an established property is a lot cheaper than building a new propert.

" A $400,000, five to 10 year old family home, with all improvements complete, is no cost to you.

"It is a lot more expensive to build, considering when land is $200,000, a new house is $250,000, suddenly you are at $450,000 and you don’t have concrete driveway, landscaping, shedding, fencing, paving?

"Yet the house which is 10 years old has all these and is probably in just as good a location."