The cost of home renovations have surged 8% in New South Wales on the back of a cooling property market, according to a new survey.
The quarterly Renovation Consumer Price Index released by ServiceSeeking.com.au reveals that renovation costs in New South Wales rose 8.11% year-on-year, compared to a national increase of only 1.48%.
New South Wales was the only state to see a price increase in all 10 of the most popular renovation services. The average tradesman in the state now charges $64.09 per hour, making New South Wales the second most expensive State to renovate a home, behind Western Australia.
The largest price increases contributing to the state’s surging result were carpentry and building, where costs were up 26.26% and 18.48% respectively.
ServiceSeeking.com.au chief executive Jeremy Levitt says this is the result of a cooling property market.
“We're now really starting to see the effects of a cooling property market,” Levitt said.
“As homeowners steer away from purchasing new property, they're investing in their existing properties through value-adding renovations which has pushed prices up.”
However, while increases were seen across the board, some services have not fluctuated by much. Prices for electrical work increased by just 1.23% while concreting rose by 3.18%.
The quarterly report analysed 52,000 quotes submitted by tradesman on the website.