Renovation revolution


Renovation revolution

Posted on Thursday, August 07 2014 at 9:18 AM

Home renovations are set to boom over the next three years according to a report by Master Builders Australia (MBA).

The industry group has released
their Forecast of Building and Construction paper, and chief executive officer Wilhelm Harnisch says it flags
strong future gains for renovation.

“The new forecasts released by
Master Builders predicts growth in the housing alterations and additions market
of 14.9 per cent ($96.4 billion) in value per annum on average over the forecast
period to 2016/17.”

Harnisch says this is a striking turn
around in a previously slow sector.

“The robust outlook is in stark
contrast to the languid performance experienced over the last three years, when
it contracted by an average of 3.2 per cent per annum.”

The MBA believe the renovation
market will bolster the country’s construction sector.

“The strong growth in renovations
will be a shot in the arm for builders across Australia and complement the
solid pipeline of work indicated by the solid lift in new building activity.”

The Northern Territory is expected
to have the strongest growth, with average yearly gains of 27.8 per cent – up
from an average of 9.7 per cent over the previous three years.

Per annum growth in New South
Wales and Western Australia is predicted to be 19 per cent and 18.6 per cent
respectively.

The ACT, Queensland and Victoria
are all expected to see gains exceeding 12 per cent for the period.

In current dollar terms, spending
on alterations and additions across Australia is forecast to average more $9.6
billion per annum in the three years to 2016/17, which is nearly 38 per cent
higher than the $7 billion annual average for the three years to 2009/10.

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