Renovators still keen but spending lessSeptember 15, 2006...

Renovators still keen but spending less
September 15, 2006 02:32pm
Article from: news.com.au

The latest HIA quarterly Renovations Monitor showed that major renovation activity increased by four per cent in the June quarter to $851 million.

HIA chief economist Harley Dale said while expenditure remained down on peaks levels seen in prior years, the first half of 2006 was healthier than last year.

"With new housing still not showing any signs of recovery, the underlying strength in renovations is good news for those many building material manufacturers and suppliers who have been feeling the pinch," he said.

Mr Dale noted that the average level of spending on major renovations fell for all categories with the exception of repairs and maintenance.

"The cost of new housing is creeping higher, however, as the blame game for the housing affordability crisis continues across levels of government.

"Consequently the renovations market will hold up reasonably well."

Major renovation expenditure increased most in New South Wales, which climbed by 15.9 per cent, with particular strong growth recorded in the Hunter region.

Rises were also recorded in Western Australia, Queensland and Tasmania.

Nationally, a total of 10,141 households undertook major home renovations over the three months to June at an average value of $84,381 for each job.

The most popular renovation in the time period was a ground floor extension.