Herron Todd White's latest national report focuses on renovation, and the message across NSW is consistent. Buyers are paying up for move-in-ready homes, and discounting homes that need work. Build costs, trade availability and approval delays make renovation hard to judge from a listing, so many buyers simply avoid it.
What the report says
- Turnkey homes are in demand. In the Illawarra, time-poor Sydney sea-changers, local upsizers and young families are paying a premium for finished three- and four-bedroom homes in suburbs like Thirroul, Austinmer, Woonona and Farmborough Heights.
- Buying to flip has got harder. High interest rates and construction costs have squeezed margins. HTW notes that buying an unrenovated home "only stacks up when there is a substantial price gap between original and fully restored homes."
- Houses are the main target for value-add. Mid-century brick cottages and timber bungalows in Corrimal, Fairy Meadow and Towradgi, and entry-level pockets like Albion Park and Warrawong, are flagged for structural value-add.
- Older unit blocks suit cosmetic upgrades. Double-brick units in Wollongong and North Wollongong, often around $550k–$750k, can lift rental yield with kitchen and bathroom upgrades and no structural work.
- The cycle is turning. HTW's property clock has the Illawarra house market "starting to decline", with Sydney in a declining market.
What it means for buyers
A softer market with nervous renovators creates opportunity for buyers who can judge a property properly. The fear of renovating is showing up as a discount. That discount is only worth having if the work is what you think it is.
| Type of work | Typical risk | What to check |
|---|---|---|
| Cosmetic: paint, floors, kitchen, bathroom | Lower | Wet-area waterproofing, plumbing age, electrical condition |
| Internal reconfiguration: extra bedroom or bathroom | Medium | Load-bearing walls, services, approval needs |
| Extension or first floor | Higher | Footings, approvals, cost per square metre versus a new build |
| Knock-down rebuild, dual-occ, subdivision | Project-level | Zoning, lot size, slope, access, bushfire and flood constraints |
How I'd assess it
On every renovator I look at three things first:
- Structure. Are the bones of the house sound? Footings, roof, wet areas, movement cracking.
- The block. What does the zoning and lot allow, now and later?
- The fix. Is it cosmetic or structural? That's often the difference between a bargain and a money pit.
Market commentary summarised from Herron Todd White's Month in Review, August 2026 (htw.com.au). General information only, not financial advice.