- Annual renovations in the state is to reach $715M this year
- Stuart Collins says the boom is fueled by equity to borrow against
After a recent HIA report showing renovation activity had hit a new record in the Northern Territory, renovation work has also picked up strongly in Tasmania and is set to remain so for some time, according to the Tasmanian Executive Director of the Housing Industry Association (HIA), Stuart Collins.
As part of the HIA’s Outlook Report, it was revealed that annual renovations activity is forecast to reach $715 million this year, +11.2% above last year, representing the state’s strongest year since 2015.
“The boom in renovations is partly due to the shift towards online learning and working from home, as well as significant house price growth in Tasmania that is providing equity to borrow against,” explained Mr Collins.
“All types of renovation projects are experiencing a surge in activity. This includes projects ranging from smaller DIY projects, to a kitchen or bathroom upgrade, through to major home extensions.
“People are spending more on their kitchen renovations than ever before as they get bigger and contain more appliances.”
Stuart Collins, HIA
Mr Collins noted that HomeBuilder had supported larger renovation jobs with over 490 applicants for major renovation projects, and overall he expects the projects to remain high even when travel resumes.
“We expect that this boom in renovations will be sustained over a number of years given the level of household savings and the shift to working from home.
“Even when overseas travel returns, home renovations will remain a priority and within the household budget.”
Like several of his interstate counterparts, Mr Collins noted the level of home building cannot be sustained until there is a reliable pathway for skilled migration.