South West WA June 2017

The month in review: South West WA

By Herron Todd White
June 2017

The renovation revolution has yet to reach the south west of Western Australia.

Yes, there have been some renovations and additions to properties in the older character areas such as Bunbury, South Bunbury and East Bunbury where small character homes are renovated and extended to 4-bedroom, 2-bathroom homes.

However as a general rule, these are undertaken by owner-occupiers rather than investors with only minor increases in value above the cost of renovation. There appears to be very few smaller character homes being renovated without the extensions.

For example a 3-bedroom 1930s character home in South Bunbury can be purchased for as low as $275,000 to $300,000. A renovation and addition to the home could cost between $200,000 and $300,000 depending on the size and standard. The end value however could range from $500,000 to $600,000 showing very little profit.

With a plethora of new residential subdivisions surrounding the main cities and towns in the south west, the demand appears to be more for new dwellings. The values for new dwellings are also very competitive in relation to renovated homes.

The limited number of older character homes in the region means that the renovation revolution is unlikely to hit the south west.