Is now the right time to start renovating your home?
Coronavirus leads to a competitive building and renovation industry.
The coronavirus (COVID-19) has negatively affected many industries, but a survey by MCG Quantity Surveyors found property owners may now benefit from its effects on the building and renovation industry.
Director of MCG Quantity Surveyors Marty Sadlier said an analysis of construction contracts and a survey of builders revealed most had dramatically reduced their quotes to secure work.
“We believe the coronavirus crisis has opened a window of opportunity for property owners to make substantial savings on building costs...” Mr Sadlier said.
“It’s fair to say that if you had a building contract priced and quoted 12 months ago and then had that same contract priced today, the 2020 amount to build would be much less.”
Mr Sadlier said property owners ready to seek a quote had been “handed a golden opportunity to get maximum construction bang for their buck.”
“In the current environment, builders are looking to simply keep going in anticipation of better days…,” he said.
“This was made most apparent given seven of the nine I surveyed confirmed they were planning to, or had already, cut their margins in order to win work.”
Mr Sadlier said another thing for keen renovators to consider was the reduction in building materials.
“The general consensus is that for staples such as floor coverings or brickwork, suppliers are now more competitive, but specialist items such as light fittings or imported finishes were less likely to see price drops,” he said.
“Reductions in materials prices provided yet another avenue for cutting quotes.”
Mr Sadlier said the COVID-19 pandemic had many similarities to what was experienced during the Global Financial Crisis (GFC).
“During the GFC it was difficult to determine how long it would take for confidence to return and the fallout ran for many years afterwards,” he said.
“With the current crisis, it’s more likely that relaxation of restrictions and perhaps a medical solution will boost confidence quickly.”