Springtime Renovation

This month, we turn our attention to the renovation market and explore how these properties are performing amid Perth’s ongoing conditions of strong growth and limited housing supply. With demand high and prices continuing to rise at a steady pace, the dream of securing land to build a new home or even purchasing an established property has become increasingly difficult and costly for many buyers. In response, renovation projects have emerged as an appealing and more accessible alternative, particularly where homes needing some TLC can be purchased at more affordable entry points. 

Interest in homes that are ready for a renovation have begun to grow, with many buyers adopting a strategic mindset where instead of competing in a highly competitive market of ready to go homes, they’re opting to renovate as a cost effective way to meet their property goals while leveraging long term capital growth potential. As new builds still face high costs and lengthy timelines, renovation offers a more practical path, especially for those wanting to stay in well established suburbs without overextending their budget.

In the $600,000 - $800,000 price bracket, buyers are also finding value in older homes on larger allotments, often in original condition. These properties not only provide scope for immediate improvement but also hold strong potential for capital growth, due to their generous land size, development potentials and location.

Starting off in the suburb of Morley, this three bedroom, one bathroom property situated on a 705 square metre allotment sold in January last year for $665,000 in original 1960s condition. The buyer has since partially renovated the home including installing a modern kitchen, a fresh coat of paint and a landscaping makeover. The renovated home sold in April this year for $913,000, reflecting a circa 37 per cent increase since the renovation works.

Taking a look at suburbs situated south of the river, this property at 7 Nields Street was built in the late 70s and features three bedrooms, one bathroom and just 97 square metres of living. The property was purchased in original condition for $545,000 in June of last year and has since undergone significant internal and external renovation works. Since the purchase, the home’s facade brickwork has been rendered, as well as a complete internal makeover including new flooring, kitchen, bathroom and laundry. The renovated home sold in May this year for $815,000 reflecting a circa 50 per cent increase in less than a year!

Heading further down into the suburb of Armadale, this property at 28 Tarrawan Road features three bedrooms, one bathroom and 84 square metres of living situated on a large 724 square metre allotment. The property was purchased in March last year for $420,000 in original and very poor condition and had since undergone an entire renovation, including landscaping and a patio installation. The property sold in May this year for $625,000, reflecting a circa 49 per cent increase after renovating.

North of the river in the suburb of Doubleview, this humble circa 1940s cottage was purchased in April of 2023 for $610,000 in partially original condition. The home features two bedrooms, one bathroom and 91 square metres of internal living space. The property was then nicely renovated following its purchase including a new kitchen, laundry, bathroom and some cosmetic works. In May this year, the renovated cottage sold for $1,115,000 reflecting a circa 83 per cent lift in value in just over two years.

Taking a look at our regional locations around the state, starting in Broome, with a sustained shortage of new housing supply, property owners tend to be more in favor of purchasing older houses in need for renovation rather than build new ones primarily due to the high construction costs coupled with the skilled labour shortage in regional Western Australia.

For example, this 2000s built, three bedroom, two bathroom home at 3 Wallaby Way in Djugun. This humble property features 107 square metres of internal living space and was previously sold in 2022 for $470,000. Since then, the home has been partially renovated with works including new flooring and a minor kitchen update. The home sold in February this year for $630,000 reflecting a circa 34 per cent increase.

Moving down the coast to Port and South Hedland, the suburbs continue to experience a volatile housing market with limited available stock, largely influenced by the local mining industry. The cyclical nature of the market coupled with a significant shortage of skilled labor, materials, and rising construction costs, makes renovating a more practical and cost effective option for homeowners seeking to improve their properties in this area in comparison to building or buying a new home.

For example, this property at 3 Logue Court in South Hedland comprised a circa 1970s built, three bedroom, one bathroom home on a large 1,176 square metre allotment that sold in July of 2023 for $130,000 mostly demolished and in need of an entire restoration. The buyer has since completely restored the home, including replacement of the original walls containing asbestos materials as well as an entire internal modern fitout. The renovated, now four bedroom, one bathroom property sold in February this year for $450,000 reflecting a massive circa 246 per cent increase in value!

In Karratha, the resource rich town faces high construction costs and limited availability of trades like other Pilbara towns. These factors make building new homes more challenging, leading many homeowners to tackle renovation projects as it poses a more practical and cost effective alternative. The renovation trend in the Karratha area has a buyer profile of primarily owner occupiers, as these buyers are able to secure a home at a more affordable price and renovate it to improve their long term living conditions and suit their needs.

This 1980s home in the suburb of Nickol was previously purchased back in 2022 for a discounted $340,000 in original and very poor condition requiring a complete internal and external makeover. Following the transaction, the buyers have since entirely gutted the property and have given it a second life. The property features four bedrooms, two bathrooms, 167 square metres of internal living space and is situated on a large 780 square metre allotment. The property recently sold in March for $790,000 reflecting a circa 132 per cent increase since renovation!

Additionally, this property at 6 Forrest Close in Millars Well comprises a circa 1980s built home featuring four bedrooms and two bathrooms on a large 768 square metre allotment. The property sold back in late 2021 in near original condition for $495,000 and has since undergone new works including updated flooring, paint, and a renovated kitchen. The property then sold this year for $645,000 reflecting a circa 30 per cent increase.

Moving down to the Mid-West coast, Geraldton benefits from fewer logistical challenges when it comes to transporting construction materials and experiences a more reliable supply of skilled labour due to its closer proximity to Perth compared to other regional centres. Geraldton’s property market remains tight, particularly for recently renovated homes, driving strong demand in this segment. Increasingly, investors from the eastern states are purchasing properties sight unseen, attracted by Geraldton’s affordability, coastal lifestyle, and long-term growth potential. However, this trend does come with drawbacks, as some properties may require significant renovations that aren’t always evident without a physical inspection.

6 Abalone Place in Sunset Beach is a 1980’s built dwelling offering three bedrooms and one bathroom situated on a 820 square metre allotment. The 152 square metre dwelling has been recently fully renovated with new flooring, fresh painting and updated kitchen and bathroom areas. This property also features a large, newly renovated shed and an outdoor spa area. This property was sold for $582,000 in April this year and previously sold in 2020 for $270,000, indicating a circa 116 per cent growth in sale price.

Another example is this 1960’s built, four bedroom and one bathroom property at 264 Seventh Street in Wonthella. This property features 169 square metre of living area on a 1,012 square metre allotment. The property has been recently upgraded with new hybrid floorboards, fresh internal paintwork and a newly installed reverse cycle ducted air conditioning system. The property sold for $521,000 in April this year and was previously sold for $265,000 in October 2023, demonstrating an expansive growth of circa 97 per cent. The property was then listed for rent in June this year and spent 19 days on the market, it is now rented for $600 per week indicating a gross rental yield of circa 6 per cent.

Heading inland, the Wheatbelt region has continued to show steady growth into 2025. Limited availability of quality housing stock remains a key factor driving interest in property renovations, with both investors and homebuyers actively seeking opportunities in this rural market. The appeal of affordable entry points, combined with the lifestyle benefits of regional living and potential for long-term capital growth, is sustaining strong demand across the region.

6 Lock Street in Narrogin is a great example, this 1920’s built dwelling offers three bedrooms and one bathroom situated on a large 1,872 square metre allotment with a total floor area of 131 square metres. This character home has been well restored and maintained with a long list of renovations. This property was initially purchased in May 2023 for $347,500 and after undergoing renovations was more recently sold in May of this year for $445,000 indicating a circa 29 per cent increase.

Take a look at 5 Hillman Street as another example, this 1950’s built property offers three bedrooms and one bathroom, situated on an 873 square metre allotment with a total floor area of 94 square metres. This property has been fully renovated and was last sold in April for $290,000, previous to this it was sold less than a year prior in October 2024 for $160,000 generating a circa 81 per cent increase in sale price.

In the Goldfields region, Kalgoorlie continues to experience a strong and active residential market, with demand remaining high. Renovated homes are primarily being purchased by owner-occupiers, as the high cost of building and ongoing shortages in trades make new construction a less practical option. Investors tend to focus on the more affordable end of the market, showing less interest in renovated properties due to their higher price points. 

275 Piccadilly Street in West Lamington is a four bedroom, two bathroom dwelling covering 115 square metres situated on a 506 square metre allotment. This property is in close proximity to the city centre and has recently undergone a complete renovation. It was originally purchased in October 2022 for $175,000. Following the renovations, it was then sold in April of this year for $395,000, representing a circa 126 per cent increase in sale price.

Turning to the South West region, property prices have remained on an upward trajectory, driven by strong demand across the area. The greater Bunbury area continues to attract both homebuyers and investors seeking better value compared to metropolitan Perth, especially amid ongoing affordability challenges. With median house prices climbing, well-priced older homes are becoming increasingly appealing as renovation opportunities, offering potential for both capital growth and lifestyle improvement.

47 Parry Street in South Bunbury is a prime example, originally built in 1982, this property offers four bedrooms and two bathrooms, with timber flooring throughout. Set on a generous 810 square metre allotment and located in close proximity to the beach, the property features 219 square metre of internal living space. Recently updated, the home features a formal lounge and dining area, a large family room, and a modern kitchen. Additional upgrades include fresh interior paint, a new solar power system, and a powered double workshop. This property was recently sold in May of this year for $845,000, previously being sold in 2022 for $590,000 prior to the renovations. This indicated an overall increase in sale price of circa 43 per cent.

Heading further inland, the Margaret River township has a range of property including modern builds, older solid brick homes and character cottages. Such is the case for 81 Tunbridge Street, this three bedroom, two bathroom character home features 104 square metre  of internal living area and is situated on a large 2,567 square metre  allotment. Being recently renovated, this property was recently sold in May of 2025 for $1,180,000 a circa 48 per cent increase from its previous sale in February 2022, $800,000.

Continuing along the coast to the Great Southern region, Albany offers a wide selection of affordable, original condition homes that present strong potential for renovation focused investors. The local market has shown that even dated properties can achieve a competitive edge once updated with modern finishes, making renovation a viable and increasingly popular strategy in the area.

13/21 Adelaide Crescent was last sold in April 2025 fully furnished for $575,000, this unit presents two storeys, two bedrooms and one bathroom covering 109 square metre . This offers a great short-term rental investment or can be used as an easy lock-and-leave holiday home. This property was recently completely renovated and generated a circa 28 per cent increase from the previous sale in June of 2023, $450,000.

Moving to our Goldfields-Esperance region, this location continues to present strong potential for investors looking to capitalise on future growth as the market still features a number of older, retro-style homes in original condition that offer solid renovation upside. However, tackling a project in this region comes with its challenges, the town’s remoteness contributes to limited trade availability and longer lead times for sourcing building materials. For those prepared to navigate these hurdles, the rewards can be significant.

We take a look at 21 Burton Road, this 1980’s built dwelling features three bedrooms and one bathroom. This property has had improvements over the years including fresh paintwork, a remodelled bathroom and kitchen including new appliances and a walk in pantry. Additionally a fully renovated separate games room adjoins a powered workshop and garage. This property was originally purchased in August 2021 for $327,000 and was more recently sold in April for $530,000 representing a circa 62 per cent increase.

Buyers are motivated by the potential to increase property value through strategic renovations, particularly in the current market where affordability and limited housing remains a concern and continues to drive the market. With interest rates stabilising and construction costs easing slightly after previous highs, mid-range properties that require some TLC present a smart entry point for investors and home buyers alike. As demonstrated, the renovation market offers a strong potential for returns where run-down properties can be seen as golden opportunities. Although, it goes without saying that due diligence must be front of mind before embarking on any renovation project and if you have any queries or would like to discuss things before making any decisions, our team is always available.

Chris Hinchliffe

Director