A surge in new kitchen and bathroom installations this financial year is expected to flag the gradual return of confidence to the NSW building sector, according to Australian tile manufacturer, Beaumont Tiles.

Beaumont Tiles says analysis of data released by the Home Industry Association (HIA) shows an 18.7 percent increase in new kitchen and bathroom installations.

However, while this is a significant increase, it is expected to level out in the new financial year while renovations of bathrooms and kitchens slows again before increasing over the next two years.

The total number of bathroom installations in new homes is forecast to increase by 2.6 per cent in 2012/13 to 277,300, from 270,300 in 2011/12.

Following a flat year in 2013/14, an increase of 4.9 per cent is forecast for 2014/15 taking the total number of new bathroom installations to 291,100.

The total value of bathroom installations in new homes was $3.62 billion in 2011/12, a decline of 2.8 per cent on the previous year.

The total value is forecast to fall by 3.7 per cent in 2012/13. Consecutive years of growth in 2013/14 (2.8 per cent) and 2014/15 (5.9 per cent) is forecast to take the total value to a record $3.79 billion.

NSW State Manager for Beaumont Tiles, Sean Rewell, said this muted growth was reflected in stores where he was seeing a trend for tradespeople, builders and homeowners to demand better value for money.

“NSW is traditionally more sensitive than other state to interest rates,” said Mr Rewell.

“While the HIA forecasts say the NSW economy overall is steadily improving, the home improvement market for kitchens and bathrooms is flat.”

“From our perspective, our stores are seeing a stream of customers who are looking for quality and greater value when they buy tiles. Home-owner customers especially want to speak to people in-store who know the products first-hand.”

Mr Rewell said there had been a national shift in the average age of bathrooms and kitchens being renovated.

“It’s falling from 15-20 years to 11-15 years,” he said.

“Homeowners and tradies alike are becoming more savvy in their choice of renovation products and materials. They’re not only demanding value for money but a wider range which fits in with our own growth in this last year.”