Soaring costs are pushing half‑finished Sydney homes onto the market, as owners cut their losses on stalled or partially completed renovations.
There are also expectations more incomplete listings could surge in the market amid continued cost pressure and economic uncertainty.
“We are certainly seeing examples of partially renovated homes coming onto the market and there are a number of factors contributing to that trend,” Housing Industry Association Executive Director NSW Brad Armitage said.
“Over the past few years, renovation costs have risen significantly due to a combination of higher material prices, freight and transport costs, labour shortages and increased financing costs.”
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16 Ellison Road, Springwood currently listed for sale guiding $1.6m to $1.7m
22 Carlyon Street, Killarney Vale sold for $1.1m
Mr Armitage said for many homeowners, projects that may have originally appeared manageable quickly became far more expensive than anticipated once work commenced.
“In some cases, homeowners began renovations during a period of very low interest rates and strong household savings, but have since faced a very different economic environment,” he said.
“Rising mortgage repayments, higher living costs and tighter lending conditions have placed pressure on household budgets, forcing some owners to either pause projects indefinitely or sell before completion.”
Uncertainty in the market can be another factor.
“When consumers become less confident about the economic outlook, large discretionary spending such as major renovations is often one of the first things to be reconsidered,” Mr Armitage said.
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Brad Armitage. Picture: Sam Ruttyn
“Renovation projects can be particularly vulnerable because unexpected costs frequently emerge once work begins, especially in older housing stock.
“Tax and policy settings can also influence behaviour indirectly.
“Broader uncertainty around household finances, investment settings and construction costs can make people more cautious about taking on large renovation commitments.”
There remains strong underlying demand for homes with renovation potential in Sydney, particularly from buyers looking to enter tightly held suburbs at a lower price point or undertake staged improvements over time, Mr Armitage said.
“While we would not describe it as a widespread surge at this stage, it is reasonable to expect economic uncertainty and prolonged cost pressures could contribute to more unfinished or partially completed renovation projects appearing on the market over the next 12 to 18 months,” he said.
50 Twin Road, North Ryde recently sold for $3.295m after sitting half built for two years
Inside the North Ryde property.
In Sydney’s north, an abandoned duplex building site at 50 Twin Road, North Ryde, sat half built and untouched for two years before selling recently via a bank auction.
Twenty three builders and developers registered, with the property selling for $3.295m, above its $2.75m reserve.
Agent Alen Galeb of Agency 1 Real Estate North Ryde said the interest was based on its two-in-one opportunity.
“You don’t get these opportunities where you’ve got a half built duplex where you can get two properties in the one,” he said.
“Someone can just take on and finish the job because it will take them between four to six months to complete the job.
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Auction numbers are down.
Mr Galeb said he has seen a rise in interest for these properties over the past few months.
“Those renovators delight properties, a lot of buyers are looking at those now because they’re comparing to the cost of buying a brand new duplex,” he said.
“Especially now within the last few months, the talk of the budget and now a lot of buyers are now looking for their new principal place of residence because of the tax breaks, that they’ll have if they upgrade and sell and move on to the next.”
23 Northcote Street, Naremburn
There are also other factors that may lead to renovated home sales.
In May, an incomplete renovation at 23 Northcote Street, Naremburn, changed hands for $2.4m.
Lead agent Samuel Theo of Sublime Property Agents St Peters said the home was a deceased estate, that the previous elderly owner had began to undertake its renovation himself.
“I believe a lot of buyers are attracted more so to homes that are half renovated as opposed to something that is a turn-key home,” he said.
“Giving the buyer the opportunity to do their own sort of finishes their own tastes and touches
“It’s got good, strong foundation, good bones, the roof doesn’t leak, so it was purely cosmetic.”
Artist impression of 16 Ellison Road, Springwood
The current property for sale
The Springwood home is guiding $1.6m to $1.7m
Another half-renovated home is currently listed for sale at 16 Ellison Road, Springwood with a price guide of $1.6m to $1.7m.
“The owner, they’re close to retirement, he’s the builder himself, but they had a change of family situation,” lead agent Stewart Lamont of McGrath Lower Blue Mountains Blaxland said.
“It was built with a plan to be a multi-generational home and the family’s now working interstate and overseas.
“To amend anything, you’d need council permission.”
Mr Blaxland said about two thirds of the interest for the home is coming from developers.
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