logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

Sales surge expected amid renovations boom

Adam Zuchetti
Adam Zuchetti
25 August 2017 1 minute readShare

Tradies, retailers, designers and other property professionals are likely to see a surge in sales activity as a major renovation boom ramps up in many parts of the country.

ME Bank reported a massive 48 per cent uptick in renovation loan applications in the first six months of 2017, while demand for cosmetic and structural loans rose 25 per cent over the same period.

For cosmetic-related loans, which included kitchen and bathroom renovations, the average amount being sought by ME Bank customers was $40,000.

Advertisement
Advertisement

The bank notes this is in line with data from the Australian Bureau of Statistics (ABS), which shows lending for home alterations and additions is at a seven-year high.

It comes as property experts increasingly agree that the massive growth in property prices, particularly in Sydney and Melbourne, is reaching its peak.

 

As such, ME Bank’s head of home loans, Patrick Nolan, suggests affordability constraints are driving the push for renovations and extensions.

“While many homeowners are still relocating, it is clear many are choosing to stay put to avoid the high house prices and expenses such as stamp duty,” he said.

While such a boom would be welcomed by those business operators set to benefit from increased custom, My Business understands other businesses in need of qualified tradespeople are likely to feel the squeeze.

Several business owners have recently complained of the difficulty in finding available tradespeople to carry out important works, which can be a source of frustration through to directly impacting earnings ability.

SPONSORED CONTENT

 

Sales surge expected amid renovations boom
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016. 

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Email Adam at [email protected]

Leave a Comment

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of MyBusiness.

Read more

Latest poll

Should the government make further amendments to JobKeeper?