After hitting decade
lows spending on home
renovations is preparing
to surge again
News Corp Australia
June 30, 2014
THE home renovation market is poised to take off again, but how much the exact some job will cost you in different states can vary significantly, according to new figures from online tradesmen service, ServiceSeeking.com.au.
It found Perth homeowners paid higher labour costs for tradesman compared to any other capital city in Australia.
Although labour costs in Perth have dropped by 14.41 per cent since this time last year they still average out to about $68.39 an hour.
Brisbane had the second highest labour costs of $60.70 an hour, followed closely by Adelaide where it was $60 an hour.
Labour in Sydney cost on average $58.52 an hour, while Melbourne was the cheapest at $55.80 an hour.
Carpentry, electrical services, gyprock and plaster, and plumbing were most expensive in Perth.
Sydney well and truly lead the country in spending on concreting which was an average $94.06 an hour.
Flooring was most expensive in Adelaide, while house painting and landscaping cost more in Brisbane than any other capital city.
Melbourne tradies charged more on average for tiling compared to other states.
Spending on renovations dropped to decade lows in 2013, according to the Housing Industry Association.
It tips that is about to turn around on the back of two months of increased spending on renovations.
The HIA predicts that $28.6 billion will have been spent on renovations in this financial year and that figure will increase by 1.2 per cent, 2.3 per cent a 2.5 per cent in the next three years.
Jeremy Levitt, of ServiceSeeking.com.au, says on a whole labour costs have only increased marginally in the past year.
He says supply and demand saw more significant increases and drops in rates charged in different states.
“That also matches quite closely to property prices as well,’’ he says.
Mr Levitt says as property prices increase, people see the opportunity to renovate and sell for a better price.
“When people are more confident they think it is a good chance time to add capital growth,’’ he says.
Nationally a number of renovation industries have seen labour charges drop, including house painting, electricians, landscapers gyprockers.
Industries where tradie prices have risen in the past quarter include carpentry, plumbing and flooring.
The figures reveal that Victorian residents get the best deals on tradie charges nationally with the lowest benchmark pricing rate.
Prices increased only marginally in Sydney in the past 12 months, but in Brisbane fees rose by 8.52 per cent in the past 12 months.
Adelaide residents suffered the biggest price hike with tradies costing about 21.55 per cent more than this time last year.
Perth residents are paying more than any other city for their home renovations, even though prices dropped by more than 14 per cent in the past year.
Gavin Hulcombe, of Herron Todd White, says the right renovation, on the right property, in the right location can ultimately impact sale price and add value well in-excess of renovation cost.
Originally published as Renovation market taking off