Cost of renovating on the way up

INSPIRED by The Block?

Want to get a few tradies around to do up the house? You’re not the only one, with home renovations tipped to pick up pace this year.

The only downside is it won’t be cheap.

According to new research by trade services website, ServiceSeeking.com.au Adelaide is now the most expensive capital city to renovate in.

Brisbane is not far behind, while Melbourne only recorded a small increase in the cost of renovations and Sydney remained fairly stable.

The Housing Industry Association’s latest update on the housing and renovation industry tips renovation activity to pick up by 3.6 per cent in the next financial year, taking renovation investment to $29.8 billion nationally.

New South Wales, Queensland, South Australia and Tasmania are all expected to experienced increases.

According to new the analysis by ServiceSeeking.com.au the cost of hiring tradies to carry out renovation work has increased in the most in Adelaide in the past 12 months with costs rising by 18.9 per cent.

At the same time dwelling prices have only gone up 2.5 per cent.

The average hourly rate for a tradie for home building and renovations is now $58.62 in Adelaide compared to the national average of $56.96.

The biggest price increases in Adelaide were for flooring tradies with hourly rates by more than a fifth.

Jeremy Levitt of ServiceSeeking.com.au said it basically come down to supply and demand.

He said in Adelaide and Brisbane there were not as many tradies available as in Sydney and Melbourne so they could afford to charge more.

Mr Levitt said the number of people wanting to renovate appeared to be on the way up.

“There has been a much bigger increase in the number of people seeking general renovation work,’’ he said.

In Brisbane renovation prices took a big jump in the past 12 months going up by 7.5 per cent.

Brisbane home renovators also pay above the national average for tradies at an average rate of $58.48 an hour.

In the past six months the number of renovation jobs posted on their website has gone up 55 per cent.

While property prices continue to rise in Sydney renovation costs have remained fairly stable during the past 12 months increasing less than 0.4 per cent.

Mr Levitt said this suggested it was probably an ideal time for Sydney residents to renovate, costs were stable but property prices were rising.

A number of trades actually dropped prices according to the research, with tiling dropping most significantly by 34.3 per cent.

Tradie costs nudged forward a little in Melbourne by 2.5 per cent in the past 12 months.

Story Source:   www.news.com.au