Australian Property News

New hardware superstore chain reflects buoyant renovations market

Posted on Thursday, July 08 2010 at 9:59 AM

With a new hardware superstore positioning itself for widespread release into the national market next year, experts say it’s a positive reflection of the surging renovations market despite continuing economic volatility in the European markets and lingering economic uncertainty locally.

Set to ferociously compete with Bunnings and capitalise on the elevating renovations market, the Woolworths-Lowe alliance has already revealed its five-year plan to acquire 150 sites across the nation to accommodate its hardware brand.

While 11 Melbourne sites have already been identified at North Geelong, Burnside, Coolaroo, Preston, Oakleigh South, South Morang, Mornington, Hawthorn East, Wendouree, Knoxfield and Carrum Downs, the company recently revealed that its first Queensland site is positioned at Tingalpa, Brisbane.

Archicentre Queensland manager Ian Agnew said that with rising interest rates and credit tightening currently curbing the investor’s ability to expand property portfolios, the renovations market is bouncing along happily.

He said it’s no surprise another competitor is edging in to capture this growing market.

Housing Industry Association Victoria executive director Gil King said despite some quarterly volatility, total investment in renovations continues to trend upwards and the prospects of this trend continuing are solid.

In Victoria, where 11 new superstore sites have already been identified, King said that local government approvals for major alterations and additions climbed by a healthy 13.4 per cent over the three months to April 2010.

“This sector is less sensitive to rising interest rates than new home building,” said King, “and as such the prospects are good for a sustained upswing.”