Real Estate Realities
Australians in renovation boom
Australians spent over a record $1 billion dollars on renovations in March, fuelled by COVID government stimulus payments. Cashed up Australians are turning to home improvements to spend their money with household wealth and cash holdings sitting at record highs.
The value of home renovations jumped to a record $1.07 billion, with over 2050 residential renovations in NSW, valued at a total of $354 million. In Victoria, there were 3062 additions and alterations approved in March - another record - worth $373 million. In Queensland there were 3352 approvals worth $255 million, the SMH reports.
More generally, the Australian economy is experiencing a building boom. The value of all buildings approved soared 36.3% in March, to a record $15.6 billion. Private sector house approvals also struck an all-time high of 14,117 houses while unit approvals jumped 63.6%, driven by an increase in large apartment approvals in NSW and Victoria. That may be good news for housing affordability with new supply weighing on price growth for units. However, it could keep downward pressure on rents in Sydney and Melbourne, with asking rents for units falling by 5.7% and 11% over the year to May 12th, respectively.