Australian Property Forecast: Renovation Boom in the Next Three Years
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According to the latest report from Master Builders Australia, home renovations are expected to grow further over the next three years. The experts say that more property owners will venture into housing remodelling and additions. They estimate a growth of 14.9% in the market, yielding $96.4 billion in value per annum from 2014 to 2017.
A Review of 2014 Renovations Westpac Renovation Report shows that Australian homeowners who remodelled their houses in 2014 spent an average of $47,984. About64% of Australian homeowners reported that they renovated their properties in an effort to make it more comfortable. Fifty-five percent said they wanted to improve the aesthetic and architectural style of their homes. Fortyone percent shared that they wanted to boost the value of their property. Some also ventured into renovation to add an extra room (16%). The report also exposed how Australians funded their home remodelling and extension projects. Nineteen percent of homeowners refinanced their mortgage to finance the renovation. Thirty five percent of people who refinanced were encouraged by the availability of exceptionally low interest rates.
The Influence of Renovation Realities According to Master Builders Australia, the growing number of home renovations in the next few years is due to the rise of DIY culture encouraged by reality television shows. A study shows that the DIY renovation craze started in 2011. The results show that every time The Block releases new series, renovation spend grew to $251 million.
Impact to Construction Industry Experts from Master Builders Australia say that the renovation boom will positively affect the construction industry. With new building projects and strong property market, more construction services are indemand.
Home renovation and additions are set to grow in the next years. The Northern Territory is expected to have the most intense development (a significant increase of 27.8% from the average 9.7% in the last years). Western Australia is set to experience growth as well, with 18.6% per annum average growth.
RESOURCES: http://grandesignswa.com.au/extensionsadditions http://www.news.com.au/finance/realestate/australian-housing-constructionboom-predicted-to-last-five-years-withqueensland-outlook-buoyant/storyfndbalka-1227064687398 http://www.afr.com/p/business/property/ho using_boom_hits_renovations_now_PIPZGy Atj2gBQaIeUY8w6O