Report: widening price gap between fixer-uppers and hot new homes

New designer homes like this one at 4 Guyra Ave, Burleigh Heads are in demand
The cost gap between brand new homes and fixer-uppers is expected to widen amid steep price hikes for construction materials and difficulty securing a builder.
Homeowners had shied away from taking on projects of their own, with rising interest rates tipped to add further pressure, a new report has found.
Herron Todd White’s Month in Review report noted a shift among homeowners as the construction industry struggled to balance existing strong demand coupled with supply chain shortages.
This new coastal home at Burleigh Heads is marketed for auction by Ed Cherry of Harcourts Coastal
“Many are weighing up whether buying an established home might be more prudent given the cost and time blowouts,” HTW CEO Gary Brinkworth said.
“We’ve observed that homeowners and investors alike are being drawn to completed homes rather than those with renovation potential.
“Given costs are predicted to elevate over the coming one to two years, I’d venture that finished homes will not only retain their price premium for some time, but the value spread between renovated and unrenovated properties will, in all likelihood, get wider,” he said.
A striking new designer home in Palm Beach on the Gold Coast sold this week for $3.6m.
A construction crisis has forced the shift. Picture: Nigel Hallett
Dubbed Onyx, the just-completed project by Carmichael Build was snapped up, sight unseen, by an interstate buyer — setting a new dry block record for the sought-after southern suburb.
The multi-level luxury home on Denawen St was marketed by Katrina Walsh, of Harcourts Coastal, and sold prior to auction after just ten days on the market.
“There is a lack of brand new, quality homes on the market at the moment,” Ms Walsh said.
“This product was snapped up by our Melbourne buyers who wanted to secure it prior to auction as the home had already attracted so much inquiry and inspections in the days since it was launched to market.”
The HTW report found the cost of building a new home had risen by about 30 per cent over the last 12 months, equating to about $4,000 per square metre for a four-bedroom house with a pool on the southern Gold Coast.
Onyx Palm Beach was snapped up for a record price ahead of auction
Its avant-garde style appealed to the Melbourne buyers
Corner block but a big sale price
Prize winners list Hinterland barn home
Picture-perfect Bilinga Hideaway for sale

Meanwhile, builders quoting for new jobs set a timeframe of 200 to 300 days for completion, up from 16 weeks a year ago.
With vacant land particularly scarce along Queensland’s southern coastal stretch, homeowners paid a premium for old properties to demolish or refurbish.
Knockdown properties fetched eye-watering prices through COVID, with demand for original condition houses remaining fierce in previously undervalued pockets close to the water.
An original three-bedroom brick home on a 680sq m in Palm Beach sold at auction last week for $1.56m.
The Thirteenth Ave property was marketed by Andy Hogarth, of McGrath, and secured for a high-end renovation project by local developer, Shoredan Projects.
Watch this space: 35 Thirteenth Ave, Palm Beach will be renovated and re-sold
“I’m finding that even though it is getting harder for mum-and-dad buyers to build houses with construction costs going up, there is still very strong confidence in the market and particularly from developers looking to do smaller, luxury house builds,” Mr Hogarth said.
“I had eight registered bidders at auction for this property, and the under-bidder was another buyer who already has a home in Palm Beach and wanted to secure a block to hold and later build their dream home.”
Mr Hogarth said savvy buyers recognised strong return on their investment in the growth area, with the potential for holding income in the tight rental market if they chose to wait until construction demand eased.
Construction of new homes across the northern Gold Coast’s growth corridor also continued at pace, as developers rushed to launch projects before vacant residential sites available for sale run out.

The post Report: widening price gap between fixer-uppers and hot new homes appeared first on

Don’t Stop Here

More To Explore