Sydney Renovation Builders
Quality Sydney renovation builders are currently very hard to find. Most of them are busy for the next six months or more. This is indicative of the wider renovation market in Australia. Over the last five years the Australian property market has performed well, however the market has recently begun to cool. Auction clearance rates have fallen over the past year showing that prospective buyers are hesitant. As a result, home owners are increasingly choosing to renovate rather than purchase or sell.
The latest finding from Roy Morgan Research reveal that 62% of Australia’s 13.6m home owners did some kind of renovation in the past 12 months, up from 57% three years earlier. The HIA estimations of the the 2016 national renovation spend is $31bn however ABS figures suggests it is only $7.7bn. Whatever the figure they all agree on the growth of this sector. Here is an article from Ibis World which supports this documentation.
Growth is expected to increase to 2.4% in both 2018 and 2019. The figure of $7.7bn has more than doubled since the year 2000. Over two million of these renovators are spending over $5000. Of all the renovations taking place 9 out of 10 use a professional with 63% hiring a home builder. The average amount spent per renovation is $47,984 and 36% of Australians plan to renovate in the next 12 months. These figures are higher in the capital cities where the driving factors to renovate have been more considerable.
What's Driving Renovation Growth
For many established owners the option to renovate is more appealing than trading up to a larger house. One reason is because it can be too expensive to trade up in the same area that a home owner is particularly attached.
Rising house prices, market position and the transfer costs associated with buying a house are driving home owners to renovate. Stamp duty alone can cost over $50,000 in capital cities making it more attractive to invest in existing homes.
A Busy Market
With all the renovation work occurring in Sydney it can be very hard to secure builders. Many Sydney renovation builders we speak to are busy for the next 6-12 months. In one situation an architect advised me he had gone to 13 builders and only 2 were able to price for renovation work in Rose Bay. This is not surprising when 63% of renovations are being done by a home builder.
Builders in this market can vary wildly. Some are very professional offering design and construct or interior design services on top of construction. Some Sydney renovation builders operate ‘out the back of a truck’ offering more competitive prices than larger companies. This is not to say they are not professional, it is all about their systems, quality and history of work.
Builder Solutions’ network of Sydney renovation builders includes companies that are doing works with a value greater than $200,000. It has been a growth area for us over the last two years. In most cases architects and project managers call us looking for insights into who is performing and who is available to put time into a quote.
We also help home owners directly but it is important to know what you want from your builder before engaging them. It is helpful for builders to price accurately when you have your documentation complete to a high level. Another important process is having your ideas translated to plans. In most cases with renovations this is best worked through with an architect.
Our Recent Renovation Experience
Our network of Sydney renovation builders has grown significantly over the last 2 years. This has been driven by the increased inquiry from architects, project manager and home owners for our renovation contacts. All our inquiries are for works over $200,000 and up to $2m.
Recently an architectural client came to us after struggling to find builders for her client. The project was for $880k in Cremorne and finding builders available to quote was becoming impossible. We introduced a company we knew were coming off a current job. They provided a competitive quote and the owner was extremely impressed with their professional manner and eye for detail. They have now proceeded to a contract with the works starting soon.
Other locations where we have been involved are Willoughby, Rose Bay, Manly, Hunters Hill and Rozelle among others. The middle and inner suburbs of Sydney require a high quality finish and it is important to know your builders history. This is why we have been able to add value here and been engaged by consultants. Our average renovation work has been around the value of $800k per dwelling.
Construction Costs - Sydney Renovation Builders
This is a hard one. The period of the house, extent of works and specification make defining construction costs difficult. Renovations in inner city suburbs can reach $3000 psm or higher. Renovating high spec water-side residences can reach above $6000 psm. Tradesmen can complete works for a much more competitive rate in the outer suburbs with new houses.
There are many factors influencing renovation costs. It is important to communicate your ideas AND budget to your designer/architect. Renovations often cost more than clients expect and it has been estimated up to 60% of renovations go over budget.
If you contact us we can put you in touch with builders experienced in your type of renovation. They can help guide your cost expectations and avoid surprises.