Homeowners in Brisbane spend millions of dollars in upgrades, as they capitalise on low interest rates and increasing real estate value. Renovations not only improve the appearance of a residential property, but also uplift its valuation, explains an expert from Hely & Associates. For instance, a property valuer in Brisbane will take improvements, among other factors, into consideration when assessing houses.
According to data from the Australian Bureau of Statistics, home renovations in Brisbane amounted to A$206.6 million in the second quarter of 2016, up 16.3 percent quarter over quarter. This indicates that residents are willing to spruce up their homes due to the number of potential buyers willing to acquire them.
Between April and June, those living in Paddington and Milton spent the most in home upgrades at A47.8 million, based on a comparison of the top 10 suburban regions in Brisbane. Their counterparts in Ashgrove splurged more than A$6.3 million for improvements.
Suburban residents accounted for a majority of home renovation in Brisbane, as they believe the risk of overcapitalisation has a lesser chance of taking place in inner-city areas, according to Domain Group chief economist Andrew Wilson.
The relationship of low-interest rates to higher spending in the renovation is attributed to cheap financing. When interest rates are small, people are likely more willing to spend, Wilson noted. In addition, renovating a home appears to be a more attractive option, due to high costs associated with buying and selling a property.
On the selling front, home listings in Brisbane have recently increased earlier than expected, local property agents said. These listings aren’t supposed to be appearing until a few weeks away, but they indicated that spring may unofficially begin.
Agents are seeing full open houses and higher-than-normal listing activity. Some even say that this year’s winter season has been the best for the home market in seven years.