Strong economic growth and swelling house prices are keeping Western Australia's home renovators active.
Commenting today on the latest release of HIA's quarterly Renovations Monitor, Australia's peak building industry body, HIA,
said that major renovation activity (jobs carried out by licensed builders and contractors) in Western Australia increased by 5.7 per
cent in the June 2006 quarter to $63 million.
HIA's Western Australia Regional Director, Mr John Dastlik, said that while expenditure on major renovations continues to reflect broader strength in Western Australia's economy, one only needs to look to established house prices to find the cause for increased renovation activity.
"Median house prices are now second only to Sydney, after rising by almost 40 per cent over the year to June, and many are being forced to consider renovating their existing home rather than enter the established home market," Mr Dastlik said.
"What is encouraging, however, is that the average amount households are willing to spend on a major renovation rose by 2.7
per cent over the June quarter, showing a well-founded confidence in the State's economy," Mr Dastlik added.
In the three months to June major renovations expenditure increased by 15.9 per cent in New South Wales, within which spending in the Hunter region increased by 6.7 per cent. Rises were also recorded in Queensland, up 5 per cent, and Tasmania, up 2.4 per cent. Major renovation expenditure fell by 26.1 per cent in the Australian Capital Territory and was down by 19.1 per cent in South Australia and 9.7 per cent in Victoria.
