Renovations, extensions soar as Covid-19 keeps us at home

Overseas travel restrictions are fuelling a local construction boom, with the number of renovations, extensions and even pools surging across SA. See the data.

Renovations, extensions, new homes and even backyard swimming pools are fueling a construction boom across the state, with new figures revealing in detail the surge in activity right across the industry.

The data, released for the first time by the Construction Industry Training Board (CITB), shows how the building boom is playing out across the state.

Home improvements are a stand-out, fuelled by government stimulus, international travel restrictions and the work-from-home revolution.

Backed by the federal government’s HomeBuilder scheme, construction of new houses, units, townhouses and apartments has soared, with the number of new projects jumping 61 per cent year-on-year, to 12,594 in the 12 months to June.

The number of renovations and extensions increased by 38 per cent, from 1734 to 2390, while swimming pools, which were specifically excluded from the HomeBuilder scheme, have also been a popular addition to many homes.

Work started on 838 pool projects in the 12 months to June, up 46 per cent from 573 in the previous year.

The CITB data is limited to projects valued higher than $40,000.

Master Builders chief executive Will Frogley said the figures revealed how South Australians had prioritised spending on their homes in the wake of the pandemic.

“Money that previously might have gone towards overseas travel, for example, has been diverted into a new swimming pool or renovation,” he said.

“The pandemic changed the way we live and work and I believe the significant increase in working from home will be maintained. We’ve witnessed a genuine game-changer, and the more time people spend at home, the nicer they want their surroundings to be.”

ABS figures released during the week suggest the healthy pipeline of construction work is set to continue.

Abbey Hall, husband Chris and son Harry, 10, are having a pool built in the backyard of their North Adelaide home. Picture: Tom Huntley

Detached housing approvals were up 15 per cent from May to June, reaching 1251 approvals for the month and 79 per cent higher than the same time last year.

Meanwhile, $66.2m worth of major home renovation projects were approved, representing a 9.3 per cent increase on May’s result and up 112 per cent on the figures from June last year.

While the $25,000 HomeBuilder grant has been widely credited for boosting renovation activity, minimum spending requirements, income caps and exclusions for pools, sheds and other items not connected to the main home have limited accessibility.

Frank Templeton, whose company Templeton Built specialises in renovations and extensions, said enquiries soared by around 100 per cent in the early stages of the pandemic, despite few of his customers being eligible for the grant.

While interest had eased in recent weeks, Mr Templeton said the recent lockdown had sparked another wave of enquiries for projects ranging from bathroom and kitchen renovations, right through to extensions and full internal house layout changes and upgrades.

“The moment the lockdown finished, literally on the Wednesday, the phones started ringing off the hook,” he said.

Supplied Editorial Master Builders SA chief executive Will Frogley

“People had been stuck in their home for a period of time, even though it was just a week, but they had realised there were things they weren’t entirely pleased with.

“It’s been a real roller-coaster. When Covid first hit the phones stopped ringing, contracts got cancelled, there was a lot of uncertainty.

“But then when things started to open back up, when JobKeeper was announced, it went ballistic around the middle of last year. At one point we had to stop taking new enquiries.”

Anthony Scaffidi from Elite Pools and Landscapes said enquiries for swimming pools “blew up” from around July last year.

“We did about 15 contracts in three weeks and I normally do 35 jobs a year,” he said.

“All of a sudden people understood that we’re not going anywhere anytime soon, people were spending more time in their homes and I think people started using their homes different to how they had been before.

“We also do landscaping and a lot of people are asking for that sort of work as well so we’re seeing both ends of our business spiking.

“I think this will continue until overseas travel becomes viable again - we’re definitely in a boom period and I think we probably have two more years to go.”

Abbey Hall and her family returned to Adelaide earlier this year after six years abroad and interstate.

They’re having a pool built in the backyard of their North Adelaide home, while also progressing plans for an internal renovation and extension.

“We always had plans to put a swimming pool in and you could say we fast-tracked that because of the current situation and not being able to travel,” she said.

“I’m working from home, and I think like a lot of people, we’re spending more time at home and we’re more focused on how we live - it’s fair to say we are spending more time and more money on our set-up to make it more accommodating for everyone.”

Anthony Scaffidi from Elite Pools and Landscapes says demand for swimming pools soared in the wake of Covid-19. Picture: Tom Huntley

The CITB figures track building activity across around 40 sub-sectors of the industry, ranging from office, retail and industrial buildings through to major roadworks and solar farms.

Major subdivisions increased by 59 per cent, from 64 to 102 in the 12 months to June, but new apartment buildings fell from 49 to just 28.

Farming, livestock and agriculture building increased by 33 per cent, from 268 projects to 356, while work on 25 solar farms commenced, down from 42 in the previous year.

The CITB provides specialised programs and support for training and skills development in the construction industry, using funds raised from the Construction Industry Training Fund (CITF) levy, which is applied on individual projects valued at more than $40,000.

CITB chief executive Andrew Fullgrabe said increased construction activity improved the capacity of the organisation to provide targeted support and training to apprentices and others working in the industry.

“The CITB is currently supporting over 6000 apprentices across the state, up by nearly 5 per cent from last year,” he said.

“This is a great result given the circumstances and a testimony to the resilience of the industry.

“The CITB continues to work hand-in-hand with industry and government to ensure significant challenges, such as a global pandemic and materials shortages, do not impact on jobs.”

Originally published as Renovations, extensions soar as Covid-19 keeps us at home