Compare House Extension & Renovation Costs

The Home Extension & Renovation Cost index

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HERC Index

Source: Cape Cod Australia www.capecod.com.au

HERC Index

Source: Cape Cod Australia www.capecod.com.au

June 2020

Home Extension & Renovation Cost Index

The HERC Index rose by 0.7% for the quarter ended June 30.

Despite concerns about the effects of COVID-19, demand for renovations has proven to be resilient. Domain reports that ‘recession rebuilds‘ have proven popular, with many architectural firms ‘as busy, if not busier, than they were a year ago’. This is supported by Smart Property Investment’s Property Market Update, which points out that isolation downtime has motivated owners to improve their homes through both maintenance and upgrades. Quoting Herron Todd White, the report also notes that renovation is “a popular option in many parts of Sydney, particularly in inner Sydney and harbourside locations where extension and renovation of an existing home is a more viable option than a knockdown and rebuild.”

Lastly, the Housing Industry Association is predicting a “slight increase in major renovation work (NSW) for the coming year” (HIA New Housing Outlook June 2020, p16).