Property
Issue No. 31 - October/November 2006
Bricks and Mortar
by Mr Kel Spencer
Recent Housing Industry Association data indicates demand for home renovations and alterations has increased, defying the declining trends of the latter stages of 2005.
HIA's Renovation Monitor shows major renovation activity, carried out by licensed builders and contractors, increased by 13% in the March quarter to $782 million Australia-wide.
Considering the recent interest rate increase and sustained higher petrol prices, the increase in major renovation activity was encouraging, although well below the peak levels experienced from 2002 to 2004.
The HIA Renovation Monitor describes major renovations as ground floor and second storey extensions, kitchens, bathrooms, garages, roofing, cladding, external improvements and repairs.
Table 1 Australian Expenditure on Major Renovations
Source: HIA Renovation Monitor
Nationally, 8,458 households undertook major home renovations over the three months to March at an average value of $92,410 for each job. The most popular major renovation over the three-month period was a ground floor extension valued at $118,232, approximately 67 square metres in size.
The HIAustralia suggests that renovations are a cheaper alternative to building and demand for major renovations would remain healthy throughout 2006
Table 2 Changes in Major Renovation spending between Australian States (March quarter 2006)
Source:HIA/Upmarket
Building Approvals
The total value of building approvals in South Australia increased by 3.9% to $778.7 million in the March quarter 2006. Residential building approvals increased by 16.6% to $536.8 million and non-residential building approvals decreased by 16.2% to $241.9 million....
