Proof Sydney is the renovation capital of Australia

2 days ago 7

Sydneysiders are leading the nation’s renovations, turning sometimes derelict homes into multi-million‑dollar, tax‑free properties.

The cost of living crisis and exorbitant stamp duty is fuelling the state’s “improve, don’t move” mindset, experts say.

And while some are doing up their homes to stay put, others are upgrading their homes to sell.

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The National Clutter Report found NSW tops the nation as the most active in renovating with highest amount of renovation waste. Picture: Tim Hunter.

The National Clutter Report’s analysis of more than 61,000 skip bin bookings from 2021 to 2025 reveals NSW tops the nation as the most active in renovating, with 9,317 bookings and highest renovation waste at 56 per cent.

This compares with Victoria at 52 per cent.

Mobile Skips chief executive Jacob Spencer said NSW, and Sydney in particular, is an epicentre of older, established and valuable housing.

“These are communities where homes are tightly held, where property values are high, and where it makes a lot of sense to invest in improving what you already own,” he said.

“We also see customers in these markets using us not just once for a decluttering job, but three, four or even five times over the course of a larger renovation.”

He said many Sydneysiders were discouraged by stamp duty, which costs more than $70,000 on the typical $1.6m family home.

“That shifts the mindset from asking whether to move, to asking how to add value to the home you already own instead of paying stamp duty and relocating,” he said.

Heavy renovation waste bookings were typically small-to-medium jobs like bathrooms, kitchens or decks.

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Builder On Site Putting Waste Into Rubbish Skip

Stamp duty is said to be one of the biggest factors encouraging Sydney and NSW homeowners to renovate

Mr Spencer said between renovation shows inspiring people and retailers like Bunnings making projects feel achievable, there is a strong cultural push towards DIY and home improvement.

And although the cost of renovating skyrocketed during Covid due to supply issues — exacerbated by the Morrison Government’s Homebuilder scheme that gave up to $25k to renovators — they’re now easing.

“That ramped up renovation, but put pressure on construction costs, labour and supply chain issues,” LJ Hooker Head of Research Mathew Tiller said.

Mr Tiller said stamp duty was one of the biggest factors that encouraged Sydney and NSW homeowners to look to renovate.

Renovation shows and retailers like Bunnings were said to be influencing homeowner’s DIY and home improvement

“Moving home in NSW is quite costly – rather than move, many make their existing home more in line with their lifestyle or growing family,” he said.

Mr Tiller recommended ensuring any renovation is not overcapitalising.

“Rather than upgrading your taps, you might want to think about adding an extra room or making those practical additions that add value to the home without overcapitalising, particularly in this current market when price growth may be a little bit softer than normal,” he said.

Mark Green has been using skip bins for many years since moving to his home in 2006.

“We didn’t have a lot of money when we first moved in, over the years the house has aged a so we’ve started to go through and renovate everything,” he said.

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Mark Green has been using mobile skip bins for many years and purposes. Picture: Tim Hunter.

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“All the major stuff’s done, but there’s always something that’ll come up next.”

Mr Green said renovations included new decks and landscaping.

“It was great to get rid of all the rubbish from that,” he said.

“I went through probably six or seven in the last two years, every few months I try and get everything out of my hair.”

The Agency Property Partner Cary Giezekamp said three types of people renovate properties, those who flip for profit, buyers who want to secure closer into the city and those who live in the residence and later sell.

“The first person is going to be paying capital gains tax, whereas the last person is going in there to live there for a couple of years as a principal place of residence, they don’t pay any CGT,” he said.

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Mr Green has completed a range of renovations on his house in Kings Park. Picture: Tim Hunter.

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“There’s not many free wickets and tax-free ways of getting money these days and that seems to be why people are looking at how to make money in climates like this.

“Markets and trade are slowing down and everyone is tightening their belt.”

Mr Giezekamp said renovation is also a cheaper way to buy in preferred suburb rather than being pushed to outer suburbs.

He pointed to opportunity for first homebuyers to secure homes under $1.5m under the First Homebuyer Scheme.

“They can turn that into a $3m property depending on what they’re doing to it.”