As renovated homes climb further out of reach for many buyers, unrenovated properties in Logan are a key entry point into the market for first-home buyers or families, local agent say.
For investors, unrenovated properties present the chance to increase value long-term.
Ray White Marsden agent Jess Nguyen is currently selling a few homes in original condition and said buyers were increasingly looking for properties with renovation or redevelopment potential rather than fully finished homes.
“Prices are just so expensive that people are having to compromise,” she said.
“If they can’t afford something that’s already been renovated in the location they want, they’re looking at properties they can move into now and renovate over time.”
Ms Nguyen is currently selling Loganlea’s 12 Catalina Street, which she said requires ‘significant work’ to be move-in ready.
But it is drawing high levels of interest from developers, rather than owner-occupiers, due to its location and block size.
“With 12 Catalina Street, renovations would almost be a waste of time,” Ms Nguyen said.
“It’s more likely to attract developers who want to use the block rather than renovate the existing house.”
Ms Nguyen said she had recently sold 13 Wentworth Terrace in Boronia Heights to a builder who is planning to renovate the property, which was in its original condition, to accommodate multiple generational living.
“That’s a renovation where the potential value afterwards is huge,” she said.
“Depending on who’s doing the work, people can add significant value while still staying within a clear budget.”
For sellers, renovating a kitchen or bathroom and updating flooring or paintwork are most likely to increase a property’s sale price and deliver the best value for money, Ms Nguyen said
Estate agent Jas Singh, from Ray White Springwood and Shailer Park, said buyer interest in unrenovated homes remained strong, although renovated properties typically attracted more competition.
“A renovated property will get a lot more interest, but that doesn’t mean a house needing a renovation won’t sell,” Mr Singh said. “It’s just a different type of buyer.”
Mr Singh agreed with Ms Nguyen’s assessment that upgrading a property’s kitchen, bathroom, floor and paintwork could add to its value.
More structural additions, like a second storey, could also increase the value of a property.
“On average, renovations can add around 15% to the sale price,” Mr Singh said.
“In some cases, this could mean an extra $150,000 to $200,000.”
For those in the first-home buyer market, Mr Singh said functionality mattered more than high-end finishes, which should be considered before committing to any renovation.
“It’s usually the floor plan that drives decisions, not luxury renovations,” Mr Singh said.
“People want something that works for their family and fits their budget, even if it needs work.”
