Home renovations are set to boom over the next three years, according to the latest forecast by Master Builders Australia.
The association's forecast predicts 14.9 per cent annual growth in the value of housing alterations and additions until the 2016/2017 financial year.
This translates into an average of more than $9.6 billion per annum being spent on renovations, which is nearly 38 per cent more than the $7 billion annual average for the three years to 2009/2010.
Master Builders CEO Wilhelm Harmisch said the healthy outlook was in stark contrast to the languid performance experienced over the past three years, during which the market tightened by an average 3.2 per cent per annum.
“The strong growth in renovations will be a shot in the arm for builders across Australia and complement the solid pipeline of work indicated by the solid lift in new building activity,” he said.
The Northern Territory is set to experience the strongest growth of all the states and territories over the next three years, with a predicted average annual growth of 27.8 per cent – well up from the 9.7 per cent average of the past three years.
Other states and territories expected to experience strong annual growth are NSW (19 per cent), Western Australia (18.6 per cent), the ACT (16.9 per cent), Queensland (14.6 per cent) and Victoria (12.5 per cent).
South Australia and Tasmania were the only states forecast to experience minimal growth, with predicted annual averages of 3.1 per cent and 1.5 per cent respectively.