HIA KITCHENS AND BATHROOMS REPORT Past Growth and Future Prospects 2009/10
Housing Industry Association Kitchens and Bathrooms Report Past Growth and Future Prospects December 2009 Price: HIA Members: Complementary Non-Members: $165 (Incl. GST) HIA Economics Group 79 Constitution Avenue CAMPBELL ACT 2612 economics@hia.com.au http://economics.hia.asn.au Image on front cover is from Seaside Cabinets HIA Economics Group December 2009 Page 1
Contents List of Figures and Tables... 4 1. Australia Dodged a Recession... 2 2. The Kitchen Industry... 14 3. The Bathroom Industry... 19 4. The Kitchen and Bathroom Manufacturing and Supply Industries: Activities, Attitudes, and Averages... 23 5. State by State Activity Forecasts... 45 New South Wales... 45 1) Kitchen Installations in New Homes...47 2) Renovated Kitchen Installations...48 3) Total Kitchen Installations...49 4) Bathroom Installations in New Homes...50 5) Renovated Bathroom Installations...51 6) Total Bathroom Installations...52 Victoria... 53 7) Kitchen Installations in New Homes...55 8) Renovated Kitchen Installations...56 9) Total Kitchen Installations...57 10) Bathroom Installations in New Homes...58 11) Renovated Bathroom Installations...59 12) Total Bathroom Installations...60 Queensland... 61 13) Kitchen Installations in New Homes...63 14) Renovated Kitchen Installations...64 15) Total Kitchen Installations...65 16) Bathroom Installations in New Homes...66 17) Renovated Bathroom Installation...67 18) Total Bathroom Installations...68 South Australia... 69 19) Kitchen Installations in New Homes...71 20) Renovated Kitchen Installations...72 21) Total Kitchen Installations...73 22) Bathroom Installations in New Homes...74 23) Renovated Bathroom Installations...75 24) Total Bathroom Installations...76 Western Australia... 77 25) Kitchen Installations in New Homes...79 26) Renovated Kitchen Installations...80 27) Total Kitchen Installations...81 HIA Economics Group December 2009 Page 2
28) Bathrooms Installations in New Homes...82 29) Renovated Bathrooms Installations...83 30) Total Bathroom Installations...84 Tasmania... 85 31) Kitchens Installations in New Homes...87 32) Renovated Kitchens Installations...88 33) Total Kitchen Installations...89 34) Bathrooms Installations in New Homes...90 35) Renovated Bathrooms Installations...91 36) Total Bathroom Installations...92 Northern Territory... 93 37) Kitchens Installations in New Homes...95 38) Renovated Kitchens Installations...96 39) Total Kitchen Installations...97 40) Bathrooms Installations in New Homes...98 41) Renovated Bathrooms Installations...99 42) Total Bathroom Installations... 100 Australian Capital Territory... 101 43) Kitchens Installations in New Homes... 103 44) Renovated Kitchens Installations... 104 45) Total Kitchen Installations... 105 46) Bathrooms Installations in New Homes... 106 47) Renovated Bathrooms Installations... 107 Appendix: Renovations Forecasts... 109 Appendix: Types of Products... 110 Appendix: Benchtop and Cupboard Door Materials... 112 Appendix: Sample by Occupation... 115 HIA Economics Group December 2009 Page 3
List of Figures and Tables HIA Kitchens and Bathrooms Report Past Growth and Future Prospects, 2009/10 Figure 1: Australia's Economic Growth... 2 Figure 2: Consumer Confidence... 3 Figure 3: Home Buying Confidence and Building Approvals... 4 Figure 4: RBA Inflationary Pressures... 5 Figure 5: Monthly Dwelling Approvals, Australia... 6 Figure 6: Change in the Number of Dwellings Approved... 6 Figure 7: Housing Starts and Underlying Demand... 8 Figure 8: House Prices - Capital Cities Performance... 8 Figure 9: Total Investment in Renovations in Australia... 9 Figure 10: Change in Trade Availability of Ceramic Tilers, Australia... 10 Figure 11: Change in Trade Availability of Electricians, Australia... 10 Figure 12: Change in Trade Availability of Joiners, Australia... 11 Figure 13: Change in Trade Availability of Plumbers, Australia... 11 Figure 14: Change in Plumbing Trade Rates, Australia... 12 Figure 15: Change in Electrical Trade Rates, Australia... 12 Figure 16: Change in Ceramic Tiler Trade Rates, Australia... 13 Figure 17: Change in Joinery Trade Rates, Australia... 13 Figure 18: Number of Kitchens Installed in New Homes, Australia... 15 Figure 19: Value of Kitchens Installed in New Homes, Australia... 16 Figure 20: Number of Renovated Kitchens Installed, Australia... 16 Figure 21: Value of Renovated Kitchens Installed, Australia... 17 Figure 22: Total Number of Kitchens Installed, Australia... 17 Figure 23: Total Value of Kitchens Installed, Australia... 18 Figure 24: Number of Bathrooms Installed in New Homes, Australia... 19 Figure 25: Value of Bathrooms Installed in New Homes, Australia... 20 Figure 26: Number of Renovated Bathrooms Installed, Australia... 20 Figure 27: Value of Renovated Bathrooms Installed, Australia... 21 Figure 28: Total Number of Bathroom Installations - Australia... 21 Figure 29: Total Value of Bathrooms Installed, Australia... 22 Figure 30: Expectations of activity levels for 2009/10... 24 Figure 31: Expectations with completion times over the next 12 months... 24 Figure 32: Number of Full Kitchen Replacements/Installations... 25 Figure 33: Kitchen Replacements Average Value by Individual Components... 26 Figure 34: Kitchen Replacements Usage Rates of High End Hardware and Storage Solutions... 27 Figure 35: Kitchen Replacements Incidence of Company Specifying and/or Include Appliances... 27 Figure 36: Average Age of Renovated Kitchens... 28 Figure 37: Bathroom Replacements Average Value by Individual Components... 29 Figure 38: Bathroom Replacements Installation Rates of Select Components Multiple Basins... 29 Figure 39: Bathroom Replacements Installation Rates of Select Components Multiple Showerheads... 30 Figure 40: Bathroom Replacements Installation Rates of Select Components Frameless Showerscreens... 30 Figure 41: Bathroom Replacements Installation Rates of Select Components Semi-frameless Showerscreens... 31 Figure 42: Bathroom Replacements Installation Rates of Select Components Framed Showerscreens... 31 Figure 43: Average Age of Renovated Bathrooms... 32 Figure 44: Bathroom Makeovers Replacement of Components and Average Value... 32 Figure 45: Annual Change in Materials Usage - Benchtops... 33 Figure 46: Annual Change in Materials Usage - Doors... 34 Figure 47: Annual Change in Materials Usage - Splashbacks... 35 Figure 48: Annual Change in Materials Usage Appliances... 36 Figure 49: Annual Change in Materials Usage Tapware... 37 Figure 50: Annual Change in Materials Usage - Sinks... 38 Figure 51: Annual Change in Materials Usage - Draws... 39 Figure 52: Annual Change in Materials Usage Miscellaneous Items... 40 Figure 53: Market share of imported products... 41 Figure 54: Change to business because of the impact from higher level of imports... 42 Figure 55: Use of Imports... 42 Figure 56: Types of Imports... 43 Figure 57: Unemployment Rate, New South Wales... 45 Figure 58: Residential Building Approvals, New South Wales... 46 Figure 59: Number of Kitchens Installed in New Homes in New South Wales 1991 to 2012... 47 Figure 60: Value of Kitchens Installed in New Homes in New South Wales 1991 to 2012... 47 Figure 61: Number of Renovated Kitchens Installed in New South Wales 1991 to 2012... 48 HIA Economics Group December 2009 Page 4
Figure 62: Value of Renovated Kitchens Installed in New South Wales 1991 to 2012... 48 Figure 63: Total Number of Kitchens Installed New South Wales 1991 to 2012... 49 Figure 64: Total Value ($m) of Kitchens Installed, New South Wales 1991 to 2012... 49 Figure 65: Total Number of Bathrooms Installed in New Homes, New South Wales 1991 to 2012... 50 Figure 66: Value of Bathrooms Installed in New Homes, New South Wales 1991 to 2012... 50 Figure 67: Number of Renovated Bathrooms Installed New South Wales 1991 to 2012... 51 Figure 68: Value of Renovated Bathrooms Installed New South Wales 1991 to 2012... 51 Figure 69: Total Number of Bathrooms Installed New South Wales 1991 to 2012... 52 Figure 70: Total Value ($m) of Bathrooms Installed, New South Wales 1991 to 2012... 52 Figure 71: Unemployment Rate, Victoria... 53 Figure 72: Residential Building Approvals, Victoria... 54 Figure 73: Number of Kitchens Installed in New Homes, Victoria 1991 to 2012... 55 Figure 74: Value of Kitchens Installed in New Homes, Victoria 1991 to 2012... 55 Figure 75: Number of Renovated Kitchens Installed, Victoria 1991 to 2012... 56 Figure 76: Value of Renovated Kitchens Installed, Victoria 1991 to 2012... 56 Figure 77: Total Number of Kitchens Installed Victoria 1991 to 2012... 57 Figure 78: Total Value ($m) of Kitchens Installed, Victoria 1991 to 2012... 57 Figure 79: Number of Bathrooms Installed in New Homes, Victoria 1991 to 2012... 58 Figure 80: Value of Bathrooms Installed in New Homes, Victoria 1991 to 2012... 58 Figure 81: Number of Renovated Bathrooms Installed, Victoria 1991 to 2012... 59 Figure 82: Value of Renovated Bathrooms Installed, Victoria 1991 to 2012... 59 Figure 83: Total Number of Bathrooms Installed Victoria 1991 to 2012... 60 Figure 84: Total Value ($m) of Bathrooms Installed, Victoria 1991 to 2012... 60 Figure 85: Unemployment Rate, Queensland... 61 Figure 86: Residential Building Approvals, Queensland... 62 Figure 87: Number of Kitchens Installed in New Homes, Queensland 1991 to 2012... 63 Figure 88: Value of Kitchens Installed in New Homes, Queensland 1991 to 2012... 63 Figure 89: Number of Renovated Kitchens Installed, Queensland 1991 to 2012... 64 Figure 90: Value of Renovated Kitchens Installed, Queensland 1991 to 2012... 64 Figure 91: Total Number of Kitchens Installed Queensland 1991 to 2012... 65 Figure 92: Total Value ($m) of Kitchens Installed, Queensland 1991 to 2012... 65 Figure 93: Number of Bathrooms Installed in New Homes, Queensland 1991 to 2012... 66 Figure 94: Value of Bathrooms Installed in New Homes, Queensland 1991 to 2012... 66 Figure 95: Number of Renovated Bathrooms Installed, Queensland 1991 to 2012... 67 Figure 96: Value of Renovated Bathrooms Installed, Queensland 1991 to 2012... 67 Figure 97: Total Number of Bathrooms Installed Queensland 1991 to 2012... 68 Figure 98: Total Value ($m) of Bathrooms Installed, Queensland 1991 to 2012... 68 Figure 99: Unemployment Rate, South Australia... 69 Figure 100: Residential Building Approvals, South Australia... 70 Figure 101: Number of Kitchens Installed in New Homes, South Australia 1991 to 2012... 71 Figure 102: Value of Kitchens Installed in New Homes, South Australia 1991 to 2012... 71 Figure 103: Number of Renovated Kitchens Installed, South Australia 1991 to 2012... 72 Figure 104: Value of Renovated Kitchens Installed, South Australia 1991 to 2012... 72 Figure 105: Total Number of Kitchens Installed South Australia 1991 to 2012... 73 Figure 106: Total Value ($m) of Kitchens Installed, South Australia 1991 to 2012... 73 Figure 107: Number of Bathrooms Installed in New Homes, South Australia 1991 to 2012... 74 Figure 108: Value of Bathrooms Installed in New Homes, South Australia 1991 to 2012... 74 Figure 109: Number of Renovated Bathrooms Installed, South Australia 1991 to 2012... 75 Figure 110: Value of Renovated Bathrooms Installed, South Australia 1991 to 2012... 75 Figure 111: Total Number of Bathrooms Installed South Australia 1991 to 2012... 76 Figure 112: Total Value ($m) of Bathrooms Installed, South Australia 1991 to 2012... 76 Figure 113: Unemployment Rate, Western Australia... 77 Figure 114: Residential Building Approvals, Western Australia... 78 Figure 115: Number of Kitchens Installed in New Homes, Western Australia 1991 to 2012... 79 Figure 116: Value of Kitchens Installed in New Homes, Western Australia 1991 to 2012... 79 Figure 117: Number of Renovated Kitchens Installed, Western Australia 1991 to 2012... 80 Figure 118: Value of Renovated Kitchens Installed, Western Australia 1991 to 2012... 80 Figure 119: Total Number of Kitchens Installed Western Australia 1991 to 2012... 81 Figure 120: Total Value ($m) of Kitchens Installed, Western Australia 1991 to 2012... 81 Figure 121: Number of Bathrooms Installed in New Homes, Western Australia 1991 to 2012... 82 Figure 122: Value of Bathrooms Installed in New Homes, Western Australia 1991 to 2012... 82 Figure 123: Number of Renovated Bathrooms Installed, Western Australia 1991 to 2012... 83 Figure 124: Value of Renovated Bathrooms Installed, Western Australia 1991 to 2012... 83 HIA Economics Group December 2009 Page 5
Figure 125: Total Number of Bathrooms Installed Western Australia 1991 to 2012... 84 Figure 126: Total Value ($m) of Bathrooms Installed, Western Australia 1991 to 2012... 84 Figure 127: Unemployment Rate, Tasmania... 85 Figure 128: Residential Building Approvals, Tasmania... 86 Figure 129: Number of Kitchens Installed in New Homes, Tasmania 1991 to 2012... 87 Figure 130: Value of Kitchens Installed in New Homes, Tasmania 1991 to 2012... 87 Figure 131: Number of Renovated Kitchens Installed, Tasmania 1991 to 2012... 88 Figure 132: Value of Renovated Kitchens Installed, Tasmania 1991 to 2012... 88 Figure 133: Total Number of Kitchens Installed Tasmania 1991 to 2012... 89 Figure 134: Total Value ($m) of Kitchens Installed, Tasmania 1991 to 2012... 89 Figure 135: Number of Bathrooms Installed in New Homes, Tasmania 1991 to 2012... 90 Figure 136: Value of Bathrooms Installed in New Homes, Tasmania 1991 to 2012... 90 Figure 137: Number of Renovated Bathrooms Installed, Tasmania 1991 to 2012... 91 Figure 138: Value of Renovated Bathrooms Installed, Tasmania 1991 to 2012... 91 Figure 139: Total Number of Bathrooms Installed Tasmania 1991 to 2012... 92 Figure 140: Total Value ($m) of Bathrooms Installed, Tasmania 1991 to 2012... 92 Figure 141: Unemployment Rate, Northern Territory... 93 Figure 142: Residential Building Approvals, Northern Territory... 94 Figure 143: Number of Kitchens Installed in New Homes, Northern Territory 1991 to 2012... 95 Figure 144: Value of Kitchens Installed in New Homes, Northern Territory 1991 to 2012... 95 Figure 145: Number of Renovated Kitchens Installed, Northern Territory 1991 to 2012... 96 Figure 146: Value of Renovated Kitchens Installed, Northern Territory 1991 to 2012... 96 Figure 147: Total Number of Kitchens Installed Northern Territory 1991 to 2012... 97 Figure 148: Total Value ($m) of Kitchens Installed, Northern Territory 1991 to 2012... 97 Figure 149: Number of Bathrooms Installed in New Homes, Northern Territory 1991 to 2012... 98 Figure 150: Value of Bathrooms Installed in New Homes, Northern Territory 1991 to 2012... 98 Figure 151: Number of Renovated Bathrooms Installed, Northern Territory 1991 to 2012... 99 Figure 152: Value of Renovated Bathrooms Installed, Northern Territory 1991 to 2012... 99 Figure 153: Total Number of Bathrooms Installed Northern Territory 1991 to 2012... 100 Figure 154: Total Value ($m) of Bathrooms Installed, Northern Territory 1991 to 2012... 100 Figure 155: Unemployment Rate, Australian Capital Territory... 101 Figure 156: Residential Building Approvals, Australian Capital Territory... 102 Figure 157: Number of Kitchens Installed in New Homes, ACT 1991 to 2012... 103 Figure 158: Value of Kitchens Installed in New Homes, ACT 1991 to 2012... 103 Figure 159: Number of Renovated Kitchens Installed, ACT 1991 to 2012... 104 Figure 160: Value of Renovated Kitchens Installed, ACT 1991 to 2012... 104 Figure 161: Total Number of Kitchens Installed ACT 1991 to 2012... 105 Figure 162: Total Value ($m) of Kitchens Installed, ACT 1991 to 2012... 105 Figure 163: Number of Bathrooms Installed in New Homes, ACT 1991 to 2012... 106 Figure 164: Value of Bathrooms Installed in New Homes, ACT 1991 to 2012... 106 Figure 165: Number of Renovated Bathrooms Installed, ACT 1991 to 2012... 107 Figure 166: Value of Renovated Bathrooms Installed, ACT 1991 to 2012... 107 Figure 167: Total Number of Bathrooms Installed ACT 1991 to 2012... 108 Figure 168: Total Value ($m) of Bathrooms Installed, ACT 1991 to 2012... 108 Figure 169: Sample by Occupation... 115 HIA Economics Group December 2009 Page 6