MBA: Australia’s Home Renovation Sector to Reach $44 Billion by 2023

Posted on Aug 13 2018 - 2:42am by Business Day TV

a house being renovatedAccording to Master Builders Australia (MBA), tiling companies will need to improve their fleet of equipment because more home-owners will spend at least $8.8 billion for renovations in the next five years.

If you’re looking for diamond blade manufacturers, choose one that can offer the broadest range of tiling products at affordable prices. Investments in new equipment are necessary since the MBA expects the country’s home renovation sector to reach a $44 billion value by 2023.

Queensland Leads the Market

Home-owners in Queensland are arguably the biggest spenders in home renovations. Data from the Australian Bureau of Statistics says that in March, they spent almost $1.5 billion to refurbish their homes. The data aligned with MBA’s forecast, which cited Brisbane among the most willing to remodel their homes.

Some architects said that there are home-owners in the city who even spend $500,000 for such projects. The average expenses depend on a person’s preferences, although adding living spaces were among the most common upgrades. This meant a need for more flooring work, which then indicated more projects for tiling companies.

Other Regions

Residents in Adelaide and Perth are also among those with plans to renovate their houses soon. Matthew Pollock, MBA’s national manager of economics, said that this is good news for small businesses that have seen a decline in demand for home construction.

Kitchen renovations accounted for many of the remodelling projects. The Housing Industry Association estimated that around 30 per cent of Australians spend between $70,000 and $200,000 for home improvements, which likely includes new flooring. Most of them also decide on renovating their properties, instead of selling them and moving to a new place to avoid costly stamp duties.

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Demand for residential property upgrades in Australia will be stronger in the next few years, so businesses involved in home renovations should find ways to improve their services.