Money Property Home renovation costs skyrocket in Australia
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Home renovation costs skyrocket in Australia

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If you live in Melbourne and are thinking of renovating your home, brace yourself for some bad news.

According to a major nationwide survey by ServiceSeeking.com.au, the average cost of renovating a Melbourne home went up by 6.5 per cent over the 2014-15 financial year.

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That’s almost twice the national average of 3.9 per cent, and more than four times the overall inflation rate, which currently stands at the unusually low level of 1.5 per cent. 

Things weren’t much better in Perth, where renovation costs increased by 6.4 per cent.

Sydney may have the housing market with the biggest price growth, but renovation costs in that city only grew by 2.5 per cent, while in Brisbane they actually decreased by one per cent.

The good news for Melburnians, however, is that your tradies are still the best value in the country, if only by a whisker.

Perth is still by far the most expensive city to renovate your home in. Sydney and Brisbane are second- and third-most expensive respectively.

australian-renovation-cost3
Source: ServiceSeeking.com.au

Explaining the fluctuations in price from city to city and trade to trade is difficult, however ServiceSeeking.com.au chief executive Jeremy Levitt said the generally buoyant housing market explains the overall rise.

“There is a direct correlation between the nation’s booming housing market and soaring renovation prices,” he said.

“People look to renovate during a property boom and prices have picked up pace to match the demand.

“A shortage of tradespeople, particularly in Victoria and Western Australia, means those that are skilled can afford to charge more.”

The cost of tradies

Perhaps the most surprising results were the massive discrepancies between Perth and the rest of the country.

In Melbourne, the average electrician will cost you $68.77 per hour. But in Perth the same service will cost you $84.57 per hour.

There is a similar discrepancy between plumbers in Perth and rest of the country.

But for any tradies reading, before you pack your bags and head west, remember that the housing market in WA is struggling at the moment. And if Mr Levitt is right, that means the pace of home renovations will also slow – meaning less work for tradesmen.

Here is a breakdown of some of the key costs across trades in Australia’s four biggest cities.


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Melbourne

Building and renovations:
$55.70 per hour, +0.9 per cent

Electricians:
$68.77 per hour, +11.7 per cent

Landscaping:
$59.86 per hour,  -4.9 per cent

Painting:
$40.12 per hour, +1.5 per cent

Plumbing:
$74.88 per hour,  -7.7 per cent


Sydney

Building and renovations:
$59.43 per hour, +1.2 per cent

Electricians:
$64.87 per hour, -1.8 per cent

Landscaping:
$63.23 per hour, +2.5 per cent

Painting:
$43.98 per hour, -13.9 per cent

Plumbing:
$77.61 per hour,  -1.1 per cent


Brisbane

Building and renovations:
$58 per hour, +0.2 per cent

Electricians:
$73.11 per hour, +1.2 per cent

Landscaping:
$70.68 per hour, -15.8 per cent

Painting:
$42.44 per hour, +1.8 per cent

Plumbing:
$74.85 per hour, -2.1 per cent


Perth

Building and renovations:
$65.06 per hour, -9.3 per cent

Electricians:
$84.57 per hour, +2.7 per cent

Landscaping:
$65.11 per hour, +12.9 per cent

Painting:
$46.33 per hour, +11.2 per cent

Plumbing:
$83.97 per hour, -2.6 per cent

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