Old homes literally under the hammer

NSW real estate: Demolition frenzy in middle-ring suburbs as new mansions go up

Aidan Devine, The Sunday Telegraph

IF YOU own an old, daggy home in a good suburb, right now you’re praying for it to sell for a knockdown price.

People are prepared to pay millions for old houses just to have them knocked down and replaced with luxury mansions.

Residential building figures show Sydney’s middle-ring suburbs are in a demolition frenzy as old cottages and fibro homes get knocked down to make way for modern homes.

media_cameraBEFORE: A Turramurra property in Warragal Rd in its original condition. The home was knocked down in 2015 and sold in March 2016 for $2.65 million.
media_cameraAFTER: The Warragal Rd today sold for $2.65 million in March 2016 - more than double the price paid in 2014.

Close to $8.5 billion in home ­alterations was undertaken across NSW over the past year, a more than $250 million jump on the value of projects in the previous year, Housing Industry Association figures showed.

Rampant rebuilding has been concentrated in suburbs such as Manly, Pymble and Turramurra, where original properties built in the 1950s and ’60s are scarce.

One recently rebuilt property ­was in Station St, Pymble. After purchasing a single-level, three-bedroom home in 2013 for $1.25 million, the owners knocked it down, built a mansion and then sold that in March for $3.2 million — a $1.95 million ­increase.

media_cameraBEFORE: 1 Challis Ave, Turramurra, before it was knocked down.
media_cameraAFTER: 1 Challis Ave, Turramurra as it appears today after selling in May for $3.37 million.

A nearby house on Warragal Rd, Turramurra, was purchased for $1.1 million in 2014 but was bulldozed in 2015 to make way for a double-storey house with a swimming pool. It sold in March for $2.65 million.

The trend has also spread to the west, around the growth hub of Parramatta.

Century 21-Merrylands principal Rafi Younes said rebuilding has become so commonplace that some streets look “nothing like they used to”.

Chad Loxsom, ­director of builders Just Screw It, said families often decide to rebuild after weighing up the likely costs of renovating.

media_cameraBEFORE: 81 Park Rd, Hunters Hill, once hosted a small brick cottage.
media_cameraAFTER: 81 Park Rd, Hunters Hill, sold late last year for $2.72 million.

“There’s a type of home that just screams 1970 and it’s not ­attractive to some people. Very often these homes haven’t been renovated, so they require work anyway,” Mr Loxsom said.

In such instances, rebuilding has become an appealing option for homeowners because technology advances have made it easier to erect large, modern homes for cheaper, Mr Loxsom said.

Councils further out from the CBD have also tended to be more receptive to rebuilding projects than their inner-city counterparts, granting development approvals more easily and quickly.

“Some councils are happy with McMansions being built next to homes from the 1970s. And they’re usually a little farther out,” Mr Loxsom said.

media_cameraBEFORE: 23 Kitchener St in Balgowlah pictured before the original dwelling was knocked down.
media_cameraAFTER: 23 Kitchener St, Balgowlah, pictured during a recent sales campaign.

Source: http://www.dailytelegraph.com.au/realestate/news/nsw-real-estate-demolition-frenzy-in-middlering-suburbs-as-new-mansions-go-up/news-story/fe329f6d23c9e3a48cac76ceca016daf

Date: 12th  June 2016 

Author: Aidan Devine, The Sunday Telegraph
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