Mornington Peninsula owners splash $200 million to become renovation hotspot

‘HOMEOWNERS in the Mornington Peninsula are embracing the renovation sensation, spending almost $200 million in the past financial year.

The bulk of the spend at $165 million was on the peninsula, with $33 million in the Frankston region, the latest Australian Bureau of Statistics figures for the 2017-2018 financial year revealed.

Point Nepean-Rosebud area, which covers Portsea, Sorrento, Rye and Blairgowrie among others, accounted for $58 million worth of makeovers.

Local agents said the popularity of television shows like The Block, higher buyer expectations and better sale prices were among the reasons for the rise in renovations.

“Many owners renovate for their own benefit while others want to get better prices when they sell,” Danckert Real Estate director Sam Danckert said.

“It is now rare that a vendor will not agree to present a property well prior to sale,” he said.

The agency sold a renovated Prescott Ave, Mt Martha, house for $2.95 million earlier this year.

“The vendor had paid $1.6 million for it in 2016, made cosmetic changes and had the gardens done up and it sold for almost twice the purchase price.”

Owners should know where to invest their renovation dollars to get the best return, and agents suggested kitchens and bathrooms as the most common areas for makeovers.

“Buyers coming here have money to spend and want a home that is ready and renovations already done for them,” Harcourts Mt Eliza sales manager Jayme Wallison said.

“Vendors can maximise their returns with renovations and a $30,000-$40,000 spend can return $100,000.”

A renovated home at 113 Winona Rd, Mt Eliza, sold for $1.65 million recently and had been a $725,000 purchase, giving the vendors a huge price gain over eight years, Ms Wallison said.

1 Millbank Drive in the same suburb had a $40,000 makeover on a $1.05 million purchase in 2016. It then had a fresh coat of paintwork added and the outdoors spruced up, fetching $1.55 million this June.

“In areas that are tightly held, more and more older homes are being bought and renovated for sale,” she added.

The cooler market conditions mean that well-presented and renovated homes are exceeding expectations and getting multiple offers, Eview Joel Hood director Joel Hood said.

“Properties that are not well-presented stay on the market for longer because they do not attract buyers,” Mr Hood said.

He noted more agents were offering services related to styling or renovating to improve properties.

“This is to leverage better returns for vendors and we recommend staging even for ordinary properties,” he added.’

• This topic was modified 6 years, 1 month ago by  Bayside.