There is a strong pipeline of approved home building activity, but what does this mean for retailers.

The Housing International Association Indicator Profile is consistent with a strong 2015/16 for new housing as the home building cycle reaches peak level of activity.

Ashley Balderson

Status Plus director, Ashley Balderson (pictured) believes the building cycle momentum reflects onto project builders, although it has little cut through on floor traffic as they often have a locked in appliance specification.

“In saying this, there are clients that are building with boutique contractors (providing the higher end product and roll out anywhere from two to eight dwellings annually) who are more hands-on and involved more closely in the selection of appliances, laundry, alfresco, who visit our display centre.

However, Balderson is not expecting strong sales from this over the festive season.

“December and January are traditionally replacement only, with a focus on dishwashers, fridges and washing machines, rather than new design roll outs. Boxing Day is the major event in the period but once February kicks off, appliances will be in demand,” Balderson said.

Meanwhile, Dorsett Retail managing director, David Dorsett-Lynn says the cycle in Western Australia is just normalising and there may be some drop in new starts.

“However, it is important to remember that it is a little later in the purchase and payment cycle that consumers go ahead and start buying TVs and appliances, so there is still plenty of money being spent on nesting,” Dorsett-Lynn said.

Due to strong demand and high prices in the Sydney property market, a number of properties are becoming unaffordable, according to 2nds World managing director, Peter Hammerman.

“Potential buyers often stay where they are and renovate instead, which leads to the purchase of kitchen and laundry appliances,” Hammerman said.

“The most popular are cooking products including, ovens, cooktops, rangehoods and dishwashers. Also the seasonal products are selling well across the range; portable air conditioners, split and ducted systems and fans are flying.

“We are budgeting for a strong Christmas selling season then we straight into Boxing Day clearance. So we have stocked up for good selling season,” he added.