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Home / Business / Companies / Construction

Renovations likely to boom in gloom

By Jacqueline Smith
NZ Herald·
3 Dec, 2008 03:00 PM3 mins to read

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KEY POINTS:

A spark of interest in home renovations could be a sign of hope for those struggling to find work in the building industry.

An informal survey by industry magazine the NZ Homeowner's Building Guide found the number of readers looking into renovations or new builds in November was up 41 per cent on the previous month.

And for the first time since January the number of readers looking to build or renovate rose above the 18-month average. Publisher Mark Graham said around 140,000 copies are distributed through New Zealand councils, building businesses and renovation centres to people who enquire about building or consents.

The magazine encourages readers to return a form telling it whether they are planning renovations or to build and what they would like more information on.

Most respondents are people who have not yet filed a consent or contacted a builder so Graham said his information is an indication of what is on the horizon.

Warwick Quinn, chief executive of the Master Builders Federation said the question will be whether the people who say they are interested follow through with their building or renovation ideas.

"If that's the case and people are saying 'we are getting to a stage where we are happy to invest' then we are delighted," Quinn said.

Quinn said Master Builders' situation reflected national statistics on declining building consents.

On Friday Statistics New Zealand released new information showing the number of dwellings registered in October dropped to 1173, the lowest since 1992.

Graham said anecdotal evidence would suggest most of the readers responding to his survey are interested in renovation which Quinn said was typical of a housing downturn.

Last month Master Builders worked on almost twice as many renovations as new buildings.

Bunnings Warehouse general manager Rod Caust said the business had noticed an increase in its DIY - style kitchens. He also reported healthy sales in outdoor leisure items like barbecues and furniture.

"It seems to be the 'nesting' period people decide to stay put and invest their money into their current property, making it a little more liveable," Caust said.

But tight times mean they are also looking to cut out the builder's fees and Caust said the DIY courses Bunnings runs in the weekends have been well attended in recent months.

Clint Jones, regional sales manager for Righthouse, which renovates homes to make them more energy efficient, said business had picked up over the past month.

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