The latest data from the Australian Bureau of Statistics (ABS) has revealed that the value of home renovating in Australia increased by 1.1 per cent year-on-year over the first nine months of 2016, for a rise of $46.1 million compared to the same period last year.
Melbourne led the capital cities in terms of renovation activity, recording $501.2 million over the September quarter for a national capital city market share of 35.4 per cent, Domain reports.
So far in 2016, the value of home renovation in Melbourne has increased by 5.4 per cent compared to corresponding figure recorded 12 months ago.
An increase in home renovations over the past year was also recorded in Sydney, up by 3.2 per cent to $1.4 billion over the first nine months of 2016, contributing to an overall market share of 33.3 per cent.
However, renovation activity throughout Australia declined over the September quarter compared to the previous three-month period. The value of residential renovations in the capital cities stood at $1.42 billion for September, which was a fall of 4.3 per cent compared to that recorded over the June quarter.
Andrew Wilson, chief economist for the Domain Group, said that local economies enjoy significant benefits from home renovations, as they can act as a positive force for urban renewal, as well as serving to conserve infrastructure resources.
"Home improvement remains a significant force in capital city housing markets, " he commented.
"Inner city locations are clearly favoured for renovation reflecting rising property values, strong connections to local neighbourhoods, the higher costs of relocation and a growing culture of do-it-yourself home renovating."
Mr Wilson went on to state: "Lower interest rates also stimulate home renovations providing reduced borrowing costs and enabling homeowners to access property equity."