As the month of August comes to a close, the Sydney and Upper North Shore real estate markets are experiencing a surge in activity, with action clearance rates and buyer engagement both on the rise. With the market heating up, property owners face the question of whether to renovate or rebuild. This fortnightly market wrap provides insight into five key considerations to help you navigate this important choice.
Sydney property listings
This week has marked the busiest auction period in Sydney since early June. According to CoreLogic, the auction clearance rate for the week ending August 18,2024, stood at 67.6%, reflecting a 4.3% increase from the previous fortnight. The North Sydney to Hornsby sub-region saw an even higher clearance rate of 76.1%, demonstrating strong market performance.
To Knockdown, or Not to Knockdown, that is The Question
Deciding between the options to knockdown and rebuild or to renovate can be challenging. To aid in making an informed decision on this issue, here are five factors to consider.
Cost Comparison
Assess whether renovating or rebuilding is more economical based on the extent and type of changes needed. Major structural upgrades may warrant a rebuild, providing you with a clean slate to easily incorporate modern design features, energy-efficient technologies and contemporary layouts. If your property requires minor updates or aesthetic touch-ups, renovation may be a more cost-effective solution.
Property Age
Historic homes with ornate details and elegant charm often stand out in the market and provide a beautiful backdrop for the popular interior design trends like ‘vintage décor’ and ‘quiet luxury décor’. If preserving the historic charm of your property is important, renovation might be a good option. For properties with minimal heritage characteristics and extensive remodelling requirements, a rebuild could be a preferable option.
Market Conditions
A knockdown rebuild is often more viable in sought-after locations with limited vacant land, reducing the reducing the risk of owners overcapitalising (the cost of the rebuild being greater than the market value added to the property).
Land Characteristics and Development Restrictions
Local planning and development regulations can significantly impact your decision to rebuild or renovate. Consulting with experts such as builders, architects and real estate agents can provide clarity on construction constraints and planning requirements.
Logistics and Emotional Impact
The potential disruptions involved with rebuilding and renovating a property are a significant factor to consider. Although renovations may be completed at a faster rate than a rebuild, it can be potentially disruptive to your daily routines as you navigate construction work within your home. On the other hand, a rebuild will require you to find temporary housing whilst the property is being constructed.
The Marshall Group Specific Data Insights
The second half of August has seen a further 22.6% increase in open home attendees, reflecting strong buyer engagement in the market. So far in 2024, The Marshall Group has successfully sold 114 properties with a total value exceeding $296 million.
If you have any questions or would like further information about the property market, please contact us at our offices in Gordon, Lindfield and Wahroonga.
We are here to assist you with all your property needs.