Current at: 05 June 2006
Major renovation activity recovered in the March 2006 quarter, pegging back some of the ground lost in a weaker end to 2005.
Commenting today on the latest release of HIA’s quarterly Renovations Monitor, Australia’s peak building industry body, HIA, said that major renovation activity (jobs carried out by licensed builders and contractors) in the ACT increased by 11 per cent in the March 2006 quarter to $35 million.
HIA’s Executive Director , ACT/Southern NSW, Ms Caroline Lemezina, said that the early 2006 result was encouraging ahead of a likely rate-rise induced softening mid year.
"Relatively stable house prices and continuing strong labour markets are delivering reasonably healthy levels of expenditure on major renovations, although activity continues to be down on the peak levels of 2002 and 2003,"Ms Lemezina said.
"The interest rate rise in May and sustained higher fuel costs will take some of the shine off renovations, as well as the new home market, in the June quarter, and overall spending on renovations will be lower this year than last,"she added.
"However, the cost of new housing continues to creep higher as governments fail to address the substantial cost burden they themselves are imposing. This environment will maintain a healthier renovations market relative to residential construction throughout the year."
Major renovation expenditure increased almost everywhere in the March quarter, with the strongest rises occurring in Western Australia, South Australia, and Queensland.
The average level of spending on major renovations increased for all categories with the exception of repairs and maintenance.
NOTES TO EDITORS
Nationally, a total of 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 months was a ground floor extension valued at $118,232 and around 67 square metres in size.
Notes:
a). The HIA Renovations Monitor is a quarterly review of major renovation activity. Compiled from seven years of insurance certificates from all states and territories, it splits major renovation activity into the categories of ground and second storey extensions, kitchens, bathrooms, garages, roofing and cladding, external improvements, and repairs and maintenance.
b). Market share adjustments have led to a revision to the history of the levels of major renovations expenditure and the number of major renovation jobs. The magnitudes of quarterly changes to renovation activity are little changed.
