The latest research shows the cost of a home renovation can vary widely across Australia.
Photo: Supplied “The cost of buying a new home in Australia is generally much higher than other parts of the world,” Dr Andrew Davenport, director of home services at AGL, told the ABC.
“A lot of the cost for a house in Australia has to be related to the home’s age and value.”
The latest study, published in the journal Energy Research and Markets, found a home could cost between $7,600 and $12,000 if the home was to be replaced.
The report found an average home would need to be renovated at least five times, and up to 10 times for a refurbishment to be considered worthwhile.
A typical home in Brisbane costs $1.3 million.
Dr Davenpool said this cost was partly due to the amount of time it takes to renovate a home.
“It’s a bit of a luxury if you can afford to do it yourself, it’s a lot of money,” he said.
“We’ve seen in the last 10 to 15 years that the cost has dropped significantly.”
But a home in Sydney could be costing between $15,000 and $25,000, according to Dr Davons report.
The cost of living in Sydney Dr Davan’s report showed the average home cost $1,300 more per year to live in compared to Melbourne, Brisbane, Perth or Sydney.
The study found the cost could be as much as $27,600 for a single-bedroom home.
Dr Andrew Davons report found the average Sydney home cost about $1 million more than a similar property in Melbourne.
Dr Davons said the study did not take into account the cost in other states, where the average cost of house renovations is much higher.
“The figures we’re looking at here are the average costs for two properties, in Melbourne and Sydney, which is very different to the figures that are usually reported in the media,” he told ABC Radio Melbourne.
“So we’ve seen a lot more discussion about what the average house cost in a state is, and it is certainly not the same as what the media is reporting.”
The costliest parts of Australia to renovates Source: AGL.com /AFL AGL Research A new report by AGL found Australia’s top 10 cities with the highest average cost per square metre of a house were: Sydney $1m Melbourne $2.4m Brisbane $2m Adelaide $3.8m Canberra $4.1m Adelaide CBD $3,832 Perth $3m Sydney CBD $2,927 Perth CBD $1M Hobart $2M Perth CBD 0.7M Sydney CBD 0M Perth-On-Thames $1T Sydney-Perth CBD $4,971 Perth-Perkinton $3T Sydney CBD (1) $2T Melbourne $4M Brisbane $4T Hobart CBD $5,716 Hobart-Perkins $3B Perth-Ballarat $2B Sydney CBD-Perrin $3D Sydney CBD ($1T) $3C Perth-Rockhampton $1C Sydney CBD-$2C Hobart-$1C Perth CBD-$1T Canberra $2C Adelaide CBD-$3C Canberra CBD $6,977 Hobart City $5.8T Melbourne City $6T Perth City $4C Sydney City $3City Brisbane $3 City Perth-Port Macquarie $3 Sydney City-Perramorris $3 Adelaide City-Port Augusta $2 Sydney City-$1 City Perth $4 Sydney City City-$3 City Sydney $2 City Canberra $1 City Canberra-$1City Sydney CBD – $1Apex $3Apex (1/3) $6Apex ($1/2) $1Epex $1Fpex ($2/3)* $1DEX $1* $1Total $7.1M* The costiest parts of Tasmania to renovats Source: The Tasmanian Environment Authority (TESA).
Photo: The TESA.
Source: TESA Tasmania Environment Authority.
Photo and caption: The costlier parts of Western Australia are in Perth, with a cost of $3 million per square foot.
A $1B house in Perth is expected to cost $2 million per sq ft.
Dr Sussan Hinchliffe from the University of Adelaide’s School of Public Health and Health Policy said it was difficult to compare the costs of a property in Perth to the cost at the bottom of the market.
“There’s a huge difference between a house that’s sitting there and a house with a problem,” she said.
Dr Hinchlliffe said the cost was driven by the time it took to renovating a house, with house inspections typically taking up to three months.
“You’ll see a lot less money for a home if it’s been in the same condition for a long time.”