Home renovations are set to boom over the next three years according to Master Builders Australia’s latest Forecast of Building and Construction.
“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,” Wilhelm Harnisch CEO of Master Builders Australia said.
“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,” he said.
“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,” Wilhelm Harnisch said.
The Northern Territory is forecast to experience the strongest growth, with average yearly growth of a massive 27.8 per cent up from an average of 9.7 per cent over the previous three years.
Not that far behind are New South Wales and Western Australia with per annum average growth predicted to be up 19 per cent and 18.6 per cent respectively.
Other strong performers are expected to be the ACT (up by an average of 16.9 per cent), Queensland (up 14.6 per cent) and Victoria (up 12.5 per cent),”
Solid but less spectacular growth is forecast for South Australia up 3.1 per cent and Tasmania up 1.5 on average over the three years to 2016/17.
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 $7.0 billion annual average for the three years to 2009/10.