Renovation market to hit $8.8 billion per year
The renovation boom that kicked off last year is set to continue.
A new forecast by Master Builders Australia has tipped the renovation market to average $8.8 billion per year and top $44 billion total over the next five years.
"Building and Construction Industry Forecasts produced by Master Builders Australia show that the surge in the pipeline of alterations and additions (renovations) work for residential builders kicked off in 2017," Master Builders national manager of economics Matthew Pollock said.
Pollock said renovation work hit a decade high in 2017.
"Importantly it has provided a much needed lifeline for small building businesses outside of Melbourne and Sydney who have seen the new housing construction side of their businesses struggle in the last few years," Pollock said.
While the boom in new dwelling construction had centred around Sydney and Melbourne, Pollock said the boom in renovation work was expected to reverse this trend.
"In fact, while the boom in new dwelling construction has been centred on the Sydney and Melbourne markets this is forecast to be reversed with the boom in renovation work. We expect growth to be strongest in South Australia, Western Australia and Queensland which is great news for our members in those states who have been doing it tough," Pollock said.