Overview of Current Position of Real Estate in Sydney or NSW by the Finance Site
With the property market cooling off in Sydney and New South Wales in general, many home owners are now looking for ways to add value to their homes by renovating. This coupled with a shortage of trades-people has in turn led to a rise in construction costs.
Sydney, NSW, April 4, 2016 (Newswire.com) - With the property market cooling off in Sydney and New South Wales in general, many home owners are now looking for ways to add value to their homes by renovating. This coupled with a shortage of trades-people has in turn led to a rise in construction costs.
The continued labor shortage has seen some construction companies flying in skilled laborers to have their buildings completed. According to sourceable.net, in December 2015, New South Wales had an approval of more than five thousands residential homes coming in second after Victoria.
According to Service Seeking, an online portal that allows Australians to find and compare the price and services of trades people when looking to carry out a renovation, at the end of December 2015 quarter, renovation costs in Sydney were 8.11% higher compared to the same period in 2014. Going by Service Seeking’s latest Renovation Consumer Price Index (RCPI), the increase witnessed in the December quarter means that a tradesperson in NSW charges an average of $64.09 per hour for a renovation project.
The Renovation Consumer Price Index analyzed 52,000 quotes across 10 renovation sectors that were submitted through the Service Seeker portal during the December quarter.
“NSW had a trade price surge because we’re still seeing high property prices,” said Jeremy Levitt the CEO of ServiceSeeking. “While they’ve dropped a little bit, it is still pretty strong so there is still a bubble even though it is cooling.”
Jeremy admitted that the size of the cost increase in New South Wales came as a surprise. With an increase well above the national increase of just 1.48% NSW is now ranked as the second most expensive state to renovate in after Western Australia.
Jeremy Levitt also explained that Sydney’s steep increase in overall cost was due to a rise in all services provided by trades people across the board.
Here’s a glimpse of the cost you are likely to incur if you choose to renovate your Sydney property (source: Service Seeking)
Building and renovations:
$70.24 per hour, +18.48 per cent
$69.15 per hour, +26.26 per cent
$68.36 per hour, +8.33 per cent
$44.21 per hour, +7.85 per cent
$78.59 per hour, +6.91 per cent
$64.09 per hour +8.11 per cent
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