The Two-Sided Property Market: Why Renovated Homes Are Thriving While Others Struggle
Not only do we have a two sided property market but we have two different ways of reporting the results.
Scheduled Auctions
1312
Reported Auctions
1057
Total Sold
444
Total Passed In
229
Clearance Rate
63%
Scheduled Auctions
1089
Reported Auctions
405
Total Sold
329
Total Passed In
76
Clearance Rate
81%
The property market is showing signs of life, but not all segments are performing equally. While fully renovated homes under $2 million are attracting strong interest, unrenovated properties and apartments are facing significant challenges. This divergence highlights a shift in buyer priorities, driven by economic conditions, lifestyle preferences, and affordability constraints.
Renovated Homes: The Sweet Spot of the Market
Buyers are gravitating towards move-in-ready homes, particularly in the sub-$2 million range. This price bracket caters to a broad audience, including young families, professionals, and downsizers, all of whom want modern, well-finished homes without the hassle of renovations.
Several factors are fuelling this trend:
1. Cost of Renovations – Rising construction costs and material shortages make renovations more expensive and time-consuming than ever. Many buyers prefer to pay a premium for a fully finished home rather than take on a costly, uncertain project.
2. Higher Interest Rates – With borrowing costs increasing, buyers are cautious about taking on additional financial strain, such as funding a renovation. Instead, they’re choosing properties that don’t require further investment.
3. Instant Gratification – Today’s buyers value convenience. A move-in-ready home allows them to settle immediately without the delays and disruptions that come with renovations.
Why Unrenovated Properties Are Struggling
In contrast, “renovator’s delights” aren’t attracting the same level of interest. Previously, these properties were sought after by investors and homebuyers looking to add value, but current conditions make them less appealing:
Tighter Lending Conditions – Banks are scrutinising loans more closely, making it harder for buyers to secure additional funds for renovations.
Longer Timelines – Supply chain issues mean renovation projects take longer to complete, adding uncertainty and stress.
Lower Appetite for Risk – Buyers are wary of hidden costs and potential budget blowouts, making fixer-uppers a less attractive option.
Apartments Face an Uphill Battle
Meanwhile, apartments—particularly in high-density areas—are facing soft demand. This is due to several factors:
Higher Body Corporate Fees – Ongoing costs deter some buyers, especially in older buildings requiring upgrades.
Preference for Space – Post-pandemic, buyers prioritize larger homes with outdoor areas, making apartments less desirable compared to houses.
Oversupply in Some Areas – While houses are in short supply, some apartment markets remain oversupplied, keeping prices and demand subdued.
What’s Next?
As interest rates stabilise and construction costs potentially ease, we may see a resurgence in demand for unrenovated homes and apartments. However, for now, the strongest part of the market remains renovated homes under $2 million—offering buyers a hassle-free, move-in-ready lifestyle at a price point that aligns with current affordability.
For sellers, this market shift presents a clear takeaway: presentation and condition matter more than ever. Those willing to renovate before selling may achieve significantly better results than those offloading properties in need of work.
Whether you’re buying or selling, understanding these trends can help you make the most of today’s evolving property landscape.
