How much will the kitchen sink your renovation budget?

The cost of renovating a house spiked through 2015 as owners took advantage of a roaring market in order to lift the value of their home.

Data from serviceseeking.com.au shows a rise in most key renovation targets in the four biggest states in Australia by population during the fourth quarter of fiscal 2015.

"The property boom and cheap interest rates have been fuelling this price inflation."
Chris Kelly, Award winning artist

Timothy Veron from serviceseeking.com.au said the property boom and cheap interest rates had fuelled the price inflation.

“In States like WA and Vic demand for renovation jobs increased through 2015 while the supply of available tradesman remained flat,” he said. “Tradesman had more power to increase prices simply because there was so much demand for their services. NSW also experienced this but to a lesser degree.”

“In Qld over the past few years, prices became quite inflated and at one point they were the most expensive state to renovate. As prices rose too high it appears the demand for renovation jobs in Qld tapered off, and tradesman started lowering prices to win the available jobs."

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Data: 2014 Q4 vs 2015 Q4. Source: serviceseeking.com.au. Illustration: Chris Kelly. Corporate caricatures & illustrations.

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.