As we all are passing unprecedented times during COVID-19, home renovations are booming around Hobart and boroughs. With people spending more time inside, they’re feeling the need to increase the space or change the layout of their home. That brings us to a situation where there has been a big growth in the home renovations past few years. People are renovating their homes to make them more attractive to potential buyers, increase property value and make the home more functional for daily use.
How COVID-19 has impacted home renovations in Tasmania and Hobart?
CommSec has revealed that renovation loans have increased to almost 74 percent this June surpassing the value of 19 years. Due to surge in demand and delays in the building, builders are going through the broom and homeowners are facing delays for their home renovation. This situation can further escalate as we’re heading to the holiday season that is just around the corner.
Builders are busy in Tasmania with record surge of approvals
With such, builders are bracing themselves to engage more resources and labor on the site and speed things up. Builders are facing challenges like scarcity of labor and increasing in prices of timber and steel. Such a surge has reflected in terms of prices for the raw materials that are skyrocketing. Same stands true to framing, flooring, plates and studs. Increased raw prices have eventually increased the price homeowners are willing to pay for new builds and renovations.
With people needing to work from home, capital cities are losing people. There’s an extraordinary outflow of people from Melbourne and Sydney. They’re moving to their native regions and are working from home arrangements. So, Coronavirus has influenced demographics in different regions of Australia.
Such an outflow and return of people has factored in the rise of the need for home renovations and add-ins. Experts are starting to believe that this transition might become permanent. The people are now used to work with freedom in the comfort of their home. They’re now used to living inside and working from home. They’re comfortable to spend more time at home and travelling less. So, with all, we can expect for continuous rise in the demand for home renovations.
Australian Bureau of Statistics revealed that there were 463 new homes approved in Tasmania in December. That is the highest number on record for Tasmania surpassing the previous high of 462. Infact, the percentage of rise in approvals for Tasmania in previous month was the highest in the country.
Further to this, people are able to save thousands of bucks on their mortgage with the help of COVID-19 stimulus grants. They are grasping such opportunities to get their home as new build as quickly as possible.
We’re seeing first home buyers rushing to get a new home but even retirees are looking to take advantage of the grants and getting the boost.
Even allied businesses are getting a boost with more renovations and new build projects. Bricklayers are getting extremely busy with each passing month. The sales are skyrocketing in all skilled trades. Even it’s easier for the new apprentices to jump in and getting experienced swiftly.
At the same time, builders are predicting the boom to get hold in coming months. A large number of available lots are already bought by various Tasmanian Families and before the new land would be available to secure, there’re won’t be enough land to meet the demand. So, with such a shortage of available land and combined impact slow supplies, the surge might not stay for long.