Daily Mail: Demand for tradies plummets in Sydney and Melbourne

(Image source: dailymail.co.uk)

In this article, dailymail.co.uk highlights the impact of falling property values on the construction sector, particularly in Sydney and Melbourne, where demand for tradespeople like carpenters, painters, and bricklayers has decreased significantly.

ServiceSeeking.com.au reports a 4.6% drop in average quoted prices for various renovation jobs over the past year. This decline covers 14 trades, with some experiencing price drops of up to 44%. Bathroom renovations have been hit the hardest, followed by declines in demand for bricklayers and electricians.

ServiceSeeking.com.au's co-founder, Jeremy Levitt, attributes this trend to homeowners' reluctance to renovate for profit due to falling house prices. He suggests that this downturn presents an opportunity for homeowners to negotiate discounted renovation deals, as builders and renovators are eager for work.

Additionally, tighter lending standards imposed by banks following regulatory interventions have made it harder for borrowers to finance renovations, further impacting the construction sector. Despite this, Levitt notes a surplus of tradespeople looking for work across various job types.

Key Points:

• Falling property values are affecting the construction sector, particularly in Sydney and Melbourne.
• Demand for tradespeople like carpenters, painters, and bricklayers has decreased significantly.
• ServiceSeeking.com.au reports a 4.6% drop in average quoted prices for renovation jobs over the past year.
• Bathroom renovations have seen the steepest decline in demand, followed by bricklaying and electrical work.
• Homeowners are reluctant to renovate for profit due to falling house prices.
• This presents an opportunity for homeowners to negotiate discounted renovation deals.
• Tighter lending standards by banks have made it harder for borrowers to finance renovations.
• There's a surplus of tradespeople looking for work across various job types.
• Sydney's median house price fell by 10% in 2018, while Melbourne's equivalent values dropped by 9.1%.
• Moody's Analytics predicts further declines in house and apartment values in Australia's major cities in 2019, with recovery expected in 2020.

Read the full article here: https://www.dailymail.co.uk/news/article-6587565/Demand-tradies-plummets-Sydney-Melbourne-house-prices-fall-ServiceSeeking-com-au-says.html