Onwards and upwards for SA renovators undeterred by rising building costs

Rising building costs are doing little to deter South Australian homeowners, with new data revealing more than $677m was spent on permit-approved renovations and alterations across the state over the past financial year.

The data – supplied by Australian Bureau of Statistics and analysed by the Housing Industry Association – shows South Aussie homeowners forked out a whopping $677.343m on renovations during FY23/24.

That’s a 10 per cent increase, or $62.259m more than the $615.084m spent during the previous financial year.

More than $536m of this was spent in greater Adelaide, marking a 12 per cent or $55.646m increase on the $481m spent the financial year prior.

But the true extent of the state’s home overhauls is likely to be far higher, with the data only covering renovations requiring a permit.

Separate HIA analysis tracking the number of homes reaching the 20-year timeline at which a renovation typically occurs indicate there could be far more homeowners likely to be splashing out on more modest updates – or tackling extensive do it yourself projects.

Housing Industry Association senior economist Tom Devitt said renovation numbers were likely to rise in most states as homes built during the early 2000s received major updates.

But there could be a problem.

Engineered stone began to be used in Australian homes in the early 2000s, but was banned from use in July this year.

“So it’s absolutely possible engineered stone law changes will impact demolition work,” Mr Devitt said.

“It will require very specific processes to do it safely.”

The material has been used heavily in Aussie bathrooms and kitchens as benchtops, and with those two rooms already the most expensive to renovate – HIA figures show there could be a further unexpected cost for future overhauls to the key spaces.

These costs have already risen, when looking at the amount spent on kitchen renovations.

HIA data shows the average South Australian kitchen renovation had risen by more than $7000 over the past financial year, with a kitchen transformation costing $27,975 in 2022 and $35,000 in 2023.

In contrast, bathroom costs have come down slightly, with the average cost of a full bathroom overhaul, including the installation of both a bath and shower, setting renovators back $28,345 last year – $1994 less than the previous year.

The biggest discernible savings here were found in the form of labour ($814 less), flooring (533 less) and plumbing ($335 less).

“Other expenses” were $671 less than the previous year.

According to the data, Burnside Council had the greatest increase in the amount spent on permit-approved renovations over the past financial year of all of SA’s councils.

In the 12 months to July, almost $70.5m was spent on renovations and alterations in the leafy eastern council area – up 95 per cent on the $36m spent last year.

Unley came in second with almost $60m spent – up 25 per cent on the $47.6m spent the year prior.

Nuovo Homes director Tim Butler, whose company does both new builds and renovations, said, despite the cost of living crisis, buyers were still prepared to invest in their homes.

“Those that want to do it, they’re doing it,” he said.

“The market is booming, customers have adjusted to the fact that things cost more than they used to, however those costs have come down significantly on the huge price increases we saw in 2022, where some costs doubled overnight.

“Everybody has a budget, but in the work I do, they don’t seem to necessarily be looking for ways to save money like they might have a few years ago.

“Younger people might be more likely to, but older homeowners with the money behind them to do it, they’re not holding back.

Mr Butler said builders were not facing the same supply issues they did a few years back where they couldn’t get timber, insulation or windows, and that the market had largely returned to a standard pre-Covid SA market.

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