CBT Developments runner, Chris Triantis says 2024 is the ideal time for renovations, with the settling of building material prices providing more certainty for the market.
Despite renovators continuing to face difficulty finding tradespeople, they’re being urged to make the most of stabilising building costs before a potential surge in demand later this year, off the back of expected interest rate cuts.
According to The Sydney Morning Herald, Triantis, who has been managing his company for the past 15 years has his schedule full with a number of renovations booked in, a total of seven already for the start of this year.
“Some of the best [tradespeople] have actually doubled their rates as a result of so much demand outstripping the supply”, Triantis said.
The latest statistics from the Housing Industry Association (HIA) supports Triantis’ statements, showcasing that house building supply prices haven’t increased during the last quarter, yet the average price of all skilled trades showed an official 4.4 percent rise in the past year.
HIA chief economist, Tim Reardon said this imbalance would be difficult to solve in the short term, as the shortfall places strain on renovation projects, growing more difficult when interest rates may be cut later in 2024.
“The ongoing growth in house prices is slowing, but prices have increased dramatically in the last four years. As a result, people will still continue renovating as the cost won’t be significant compared to the rising value of their homes,” Reardon said.
Triantis also says that builders are more secure about pricing when all contracts are set at a fixed price.
“It gives both us [tradespeople], and our customers, a lot more confidence going forward.”
Source: The Sydney Morning Herald
