Australia is having its biggest surge in home renovation activity ever, with Commonwealth Bank expecting it to hit overdrive throughout 2021.
Over $800 million a month has been approved in renovation construction over the past four months, according to the ABS, with the CBA showing its own loan approvals for alterations and additions have had a very steep rise.
CommBank senior economist Kristina Clifton says the “extraordinary pace” of growth was being supported by the Federal Government’s HomeBuilder grant, as well as low borrowing costs and pandemic limitations on travel.
“Over the COVID period, we have really seen a shift from spending on services towards spending on goods, in particular things around the home,’ she says.
Approvals for alterations and additions grew 8% in December to sit 37% higher over the year, according to ABS. Not all renovation activity was being captured in the data, according to CBA, because not all alternations and additions require building approvals.