Building cost surge drives buyers to renovated Adelaide homes

Renovated homes are in high demand as building costs continue to soar.

---

Spiralling building cost are presenting a cash windfall for owners of renovated properties, with buyers prepared to splurge on updated homes rather than fork out to do the work themselves.

Selling agents say renovated homes are keenly sought by buyers as a more cost-effective option than purchasing those that require an ambitious restoration.

In Mile End, a 1900s former grocery store-turned-stylish residence, recently renovated by vendor and interior architect Arty Kovacs, of AFD Studio, has received such strong interest that LJ Hooker sales executive Thanasi Mantopolous expects it will achieve one of the suburb’s highest-ever prices when it goes under the hammer on May 17.

Ms Kovacs who bought 25 Ebor Ave with her husband Keith nearly three years ago, said her connections within the building sector had helped keep renovation costs down.

25 Ebor Ave, Mile End.

---

25 Ebor Ave, Mile End.

---

25 Ebor Ave, Mile End.

---

25 Ebor Ave, Mile End.

---

To stay within budget, she said the couple made “clever’’ material choices – including the use of Spanish handmade tiles as a luxurious yet cheaper splashback option than extending the stone used on the kitchen benchtops.

Ms Kovac said retaining the property’s character was a priority, with a side fence still bearing an original painted advertisement for Rosella tomato sauce.

But she struggled to see how many would afford to pull off a similar renovation in the future given soaring costs.

“It’s really tricky to say where that (renovation) price would sit (if work was being started today),’’ Ms Kovac said.

MORE NEWS

Unexpected bonus to come out of market boom

Quirky Adelaide home comes with pint-sized pub

More sharing to cover rising rents

“Just with how expensive building is, I couldn’t imagine a family being able to purchase a property that needs to be added to or an extension put on it and finding the money to do that.

“To be able to have (purchase) something where the work is already complete, I think, is a bit of a no-brainer.’’

Retiree Anne Davies, from Sydney, bought and then renovated a rundown, circa-1905 Semaphore character home at 20 Water St two years ago – the “sweet spot’’ to buy before building costs skyrocketed, she said.

A self-confessed “FIFO renovator’’, flying into Adelaide once a month to check progress, Ms Davies returned the century-old deceased estate to its former glory, with the help of a builder who was passionate about using recycled materials.

20 Water St, Semaphore.

---

20 Water St, Semaphore.

---

20 Water St, Semaphore.

---

20 Water St, Semaphore.

---

Ms Davies said much of the fit-out was purchased when on sale – but renovations for the home, which will be auctioned on Saturday, still came in 20 per cent over the initial budget.

“I kept a very tight rein on everything but with building costs going up so much more (since the renovations) – and they’re going to go up again because of the disruptions in logistics and transportation – I think people do now want something where the work has already been done,’’ she said.

Booth Real Estate sales consultant Jamie Brown is poised to set a new South Australian residential sales record when his listing at 11 The Ave, Medindie, officially changes hands for more than $13.5m.

Mr Brown, who has not revealed the exact sales price or the settlement date, said the home’s magnificent renovation had attracted strong buyer interest.

“What I think has fuelled interest in this property and others like it is that the cost to renovate has more than doubled in six years, so you’ve got people who are looking at maybe renovating or doing major additions to a big old home currently who have had some quotes come in and they’re thinking: ‘My god!’’’ Mr Brown said.

“This is an attractive alternative because it’s going to cost a ridiculous amount of money to do that and it’ll be three to four years out of your life – so old character homes that have had major additions done already to them recently, the market is putting more emphasis on those options.

“Financially and mentally, it’s a more attractive alternative.’’

– by Lauren Ahwan