Home renovations slow in 2015
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Home renovations slow in 2015
Posted on Friday, April 24 2015 at 4:46 PM
The Housing Industry Association (HIA) has released its Autumn 2015 Renovations Roundup report concluding that the home renovation industry has softened this year.
Shane
Garrett, a senior economist at the HIA, says new home building has hit record
levels but renovations will continue to struggle.
“This
represented a continuation of the slump which has blighted the sector since
2011.”
Garrett
says the volume of renovations activity has dropped by 15 per cent over the
past three years.
“The
performance of South Australia typified the national trend.
“Over
the 2012/13 period, renovations activity in SA declined from $2.1 billion to
$1.78 billion – a contraction of 15.1 per cent.”
Garrett
says home renovations are an important component of the construction sector.
“Valued
at $29.66 billion during 2014, the renovations sector accounts for over one
third of all residential construction activity and about two per cent of GDP.”
The
report predicts a further decline of 2.8 per cent in renovations activity
during 2015, although uplift is expected between 2015 and
2018 because of of low interest rates and the gradual recovery of economic
activity.
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