The home building and renovations industry was given a major boost last year when the Federal Government announced their HomeBuilder grant scheme in June 2020.
The scheme was extended in November, allowing homeowners to apply for the grant up until March 2021.
Then in April this year, the Federal Government announced an extension to the rules around the commencement requirement.
Originally, building work had to start within six months of a contract being signed with a construction company.
This was extended to 18 months after contracts were signed to ensure that any potential delays in the supply of building materials due to COVID-19 won’t affect people who received the grant, according to the announcement by Federal Treasurer Josh Frydenberg.
Outlook After HomeBuilder
In the aftermath of HomeBuilder, the home building and renovation market is set to remain strong despite the fact that the grant is no longer available.
In their June 2021 Industry Outlook, the Housing Industry Association (HIA), Australia’s peak national industry association for the construction and development industry, said that a number of factors are combining to drive the market, including:
- More people are working from home;
- A significant increase in household savings due lack of travel and entertainment;
- Low interest rates;
- House price growth.
And a wide range of economists are backing this up according to a recent report in the Australian Financial Review that also noted “record low interest rates, robust property price growth, elevated household savings, preference shifts and a rebounding economy.”
If you are a homeowner in Sydney looking to renovate your home, it is also important to know that NSW is performing differently to the other states and territories.
Interviewed recently by Channel 7, HIA economist Tom Devitt noted that, “New South Wales saw the smallest uptake of the HomeBuilder program, but is demonstrating the strongest demand following the end of the program.”
Effect of High Demand
So, will this demand, and the potential supply issues, be a cause for concern for anyone looking at renovating their home in the coming year?
Working with an established builder with strong links to material suppliers will no doubt be an important factor if you are looking to start a building project in the next 12 months.
Addbuild, operating exclusively in the Sydney market for the past 40 years, works on around 80 projects a year, and is well versed in project management during such times.
“This isn’t the first time we’ve seen a surge in demand and potential issues with building material supply,” explains Addbuild owner Chris Books.
“Our Building Supervisors are experts at coordinating the various tradespeople required in every building project, and they ensure that building materials arrive in time for the respective trades to complete their work.”
“Because of the quantity of building materials we order every year, and the number of years we’ve been in business, Addbuild has excellent relationships with a wide array of suppliers”, Chris notes, “and we feel confident that we are in a strong position going forward to address any issues that might trip up smaller or less experienced builders.”
“In our 40-year history Addbuild have been through several similar periods and we know how to scale our operation to meet periods of high demand.”
Planning a Major Renovation?
So if you are planning to renovate your home this year, the team at Addbuild would love to hear from you.
As well as being Sydney’s leading home additions and extensions builder, Addbuild offer a ‘concept-to-completion’ service that includes experienced designers and the management of the Development Application process on your behalf.