Home Renovations Expected to Boom in Perth!
According to an article in Perth Now, home renovations in Perth will see a rise towards the end of the year thanks to aging properties. Experts predict the value of renovation work to increase by as much as $60 million by 2020.
Housing Industry Association executive director John Gelavis said that now is the time to renovate provided the cost and availability of tradies.
More importantly, HIA also estimates that WA will see around 3.1 per cent contracted work towards the end of this year. This will soon rise to 5 per cent in 2018, by 5.3 percent in 2019 and by 3.4 per cent in 2020.
Additionally, lending for renovations went down by 11 per cent in 2016 in terms of value. Likewise, major renovation approvals also decreased 21 per cent in value up to January. Fortunately, this will soon change thanks to first homebuyers avoiding rushing into to buy into their second or third homes. It appears that the trend now lies in bumping up existing properties.
“A lot of housing stock has hit the 20-year mark so we would expect that’s the time for a renovation,” Perth Now quoted Mr Gelavis.
“The renovation market is still strong. We are hoping it will grow a bit on the back of price growth.
“People have equity in their homes, they’ll probably use that equity to renovate and then we’ll see an increase in the renovation market.”
Apart from increased home renovations, home splitting seems to be setting the trend now. Splitting lets parents and their adult children live independently from each other without needing an additional property. Many have started seeing the potential of sprucing up their homes instead of buying new properties.
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