Home Extension & Renovation Cost Index
The HERC Index increased incrementally (0.08%) in April. For comparison purposes, we provide the below chart indicating HERC Index movements relative to the Residential Property Price Index (RPPI) for Sydney. While the housing market appears to have softened in recent months, it remains to be seen how this will affect the demand for renovations and extensions – per this recent article, it is often the turnover of housing stock that drives demand for renovations rather than the value of the stock itself. We await to see if a softening in the RPPI leads to flow-on effects on renovation and extension project pricing, to be revealed in the HERC Index in coming months.