He said ABS figures for the first eight months of this financial year showed the suburb’s building approvals totalled $32.5 million to top the list of areas in the western suburbs for urban renewal.
This comprised $24.7 million committed to the construction of new homes and $7.73 million spent on home renovations during the period.
Swanbourne/Claremont was second on the ABS list at $28.6 million, followed by Nedlands/Dalkeith at $27.3 million.
Mr Coleman said many Floreat homes were more than 50 years old and therefore ripe for rebuilding or home renovations.
Original homes on large Floreat blocks valued at about $1.5 million were in high demand.
‘We are finding that these homes are strongly favoured by families who enjoy large lots and are attracted to the location, which has easy access to the city centre and the beach as well as a wide range of quality schools,’ Mr Coleman said.
‘Generally, these younger families chooseto either demolish these homes and build a new house or alternatively renovate the property to their personal tastes’Older style homes in Floreat are now growing in demand because of their very high land content.
‘Astute property buyers understand that the value of these older style character properties can be significantly enhanced through tasteful renovations, especially when the local real estate market gains further momentum.’
Mr Coleman said anyone who was considering buying an older property for renovation purposes should ensure the renovation work was conducted to a high standard.
‘When the property owner decides to sell a renovated character home, prospective buyers pay a lot of attention to the detail of the property, and poorly renovated homes are generally penalised at resale,’ he said.
‘A good tip for buyers is to attend home inspections of local character homes listed for sale that have been tastefully renovated.
‘This will give the buyers a good understanding of the work involved in renovating this style of property and also the financial returns that can be achieved after they have undertaken a cost analysis of the proposed renovation.’