Posted by admin on 17 October 2011
If you’ve noticed more tradies’ trucks in your neighbourhood streets there’s an easy explanation: home renovation is on the up. New ABS stats released today show the value of “alternations and additions to residential building” rose 2.6% in the June quarter. Aussies spent a massive $1.8 billion on major renos like new kitchens, decks and media rooms.
Major alternations in a home are classified as all works over $10,000 although last time we did work on our place that was less than the price of a couple of vanity units and taps…
The Housing Industry Association says renovation works are the source of growth for their industry in 2011. New residential construction dropped 5.3% in the June quarter, the majority of the slump in apartments and other attached buildings.
It’s a regular feature of a quieter sales market. People stop building, move less and renovate like crazy. We last reported on this in December 2006 and no doubt we’ll see it again. In a way it’s great for our streets to see all that housing stock rejuvenated.
Tags: Australian Bureau of Statistics, Brisbane houses, Brisbane inner city residential building, Housing Industry Association
Posted in architecture and renovation, trends in Brisbane property | No Comments »
Posted by admin on 18 December 2009
We’ve written before about the US trend to sticking a TV in every room of your home. Well it may now be happening here…
One of the fastest growing trends in Aussie kitchens is the inclusion of a TV, say the Housing Industry Association, who today released survey results revealing what we’re adding to our homes. We must be enjoying a glass of vino while we’re cooking too – wine fridges were the hottest new kitchen appliance.
Australians are busy renovating and the HIA says one of the strongest growth categories within the kitchen and bathroom sector in recent years has been the use of high-end hardware and storage solutions.
“The growth in the use of storage solutions held steady for lazy susans in the 2009 survey, but increased for every other category. The fastest growth was for soft closing draws. Lift-up door operating systems and touch opening door and drawer systems also grew in popularity.”
According to the HIA in 2008/09 there were 130,650 new dwellings started in Australia, valued at $34.03 billion, and at an average value of around $260,489. The average value for both a kitchen or bathroom installation was around $14,000.
“Engineered stone, solid surface and granite bench tops were all in high demand. But there was a decline in usage rates for stainless steel, concrete, and timber bench tops. Glass and engineered stone splashbacks are on the rise, but there’s a decline for granite and tiled splashbacks.”
Into the bathroom and multiple shower heads, semi-frameless shower screens and undermount sinks are the star performers.
Tags: home renovations Brisbane, Housing Industry Association, kitchen appliances
Posted in architecture and renovation, trends in Brisbane property | No Comments »
Posted by admin on 5 March 2008
The announcement of a further 0.25% interest rate rise has predictably drawn comment that recent strong property sales volumes will slow. And we agree. There’s no doubt buyer confidence in the market will ease because this is exactly what the Reserve Bank needs. To rein in inflation the RBA needs you and I to put our wallets away. But in the face of this co-ordinated campaign to slow property sales we thought it worth reviewing some of the supply and demand issues behind Brisbane’s solid property price growth.
More people require more homes, and the ABS tells us our national population grows by 1 person every 1 minute and 42 seconds. New arrivals off the plane pretty much cancel out deaths, so every time a doctor slaps a new-born bum our country needs more homes. Queensland was the only state last year to record significant population growth (approx 24,000) while NSW the only to record a big drop (approx 24,000 – if only they would support our Origin team once they got here!).
What about ability to borrow and repay a loan? Our unemployment rate dropped again in January, now at 4.1%. And in the year to November our wages were up 5%. There’s no doubt interest rate rises will put home ownership out of many people’s reach, and these people will continue to rent, adding pressure to that surging market.
On the supply side Queensland’s building approvals dropped almost 6% in December and nationally we had a 3% drop in investment housing finance in the same month. The Housing Industry Association says we’re undersupplied by 20,000 homes and the prices of new homes are continuing to rise. In its recent HIA Trades Report it records all residential construction trades as being in short supply with SE Qld one of the most severely affected by skills shortages. If you can’t find a sparkie to fix anything it’s because they’re rated as “critical short supply”. Booms in mining, infrastructure works and commercial building are all forcing construction prices higher.
Overall we have more people earning more money needing more homes, with those homes costing more to build. In areas like Brisbane’s inner city this situation is at its strongest. So while the RBA wields its ‘rates sabre’ the decision to not buy will for many be based on fear, that strongest of investment emotions.
For those who understand the strength of demand and scarcity of supply, and recognise an opportunity, this could well be a great time to buy.
Tags: Australian Bureau of Statistics, Brisbane housing supply, Housing Industry Association, interest rates, population growth Brisbane, Reserve Bank, unemployment rate Australia
Posted in Brisbane's sales market, trends in Brisbane property | No Comments »
If you’ve noticed more tradies’ trucks in your neighbourhood streets there’s an easy explanation: home renovation is on the up. New ABS stats released today show the value of “alternations and additions to residential building” rose 2.6% in the June quarter. Aussies spent a massive $1.8 billion on major renos like new kitchens, decks and media rooms.
