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.
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.