Australia is set to experience a record-breaking year of building activity, and the benefits will reverberate for years to come. That's according to the Building in Australia 2014-2029 report released by BIS Shrapnel on July 21.
Due largely to the popularity of apartment living, new dwelling starts are predicted to hit 190,000 across the country, easily surpassing the previous peak of 187,000 set in 1994. These stellar results will continue for two more years after this, providing plenty of work opportunities for tradies and construction workers for the near future.
Much of this, according to BIS, is being driven by population gains around the country, combined with the low interest rates that are a result of the equally low cash rate set by the Reserve Bank of Australia. Not only is this feeding demand for residential housing, but it's also making home loans more affordable.
Consequently, the total worth of building commencements is predicted by BIS to grow by 5 per cent in 2014/15. The alterations and additions sector is also forecast to see a growth of 5 per cent, so it seems there will be no shortage of home buyers looking at renovating the bathroom or kitchen in the following years.
Indeed, the Housing Industry Association's Kitchens and Bathrooms Report: Past Growth and Future Prospects 2013/14 released earlier this year made it known that the total number of kitchen installations in new homes increased by 11.7 per cent in 2012/13, reaching a record-high total value of $3.29 billion. Bathroom installations similarly reached a value of $4.11 billion in 2012/13.
These results indicate that much of the alterations and additions growth could well be localised in kitchen and bathroom renovations, if these strong numbers continue to hold over time.