New Zealand Construction Boom Hits 50-year High

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Friday, September 4th, 2015
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The value of building work undertaken in the June quarter has hit a 50-year high.

Statistics New Zealand says more than $4 billion worth of activity was put in place in the three-month period – the most since records began.

It was up eight per cent on the same period last year and the volume of non-residential work was also at a record while residential volumes were still short of their peak in June 2004.

The value of all building work rose a seasonally adjusted 2.2 per cent in the June quarter, with a 5.9 per cent gain in non-residential work and a 0.1 per cent increase in residential activity.

“In Auckland, residential work grew, while in Canterbury most of the growth was in non-residential work,” Statistics NZ’s business indicators manager Neil Kelly said in a statement.

Building activity is forecast to remain robust over the next six years, with $209.4b of work projected over that period, peaking in 2016 at $36.5b of work.

The bulk of that is associated with house building in Auckland, where builders are under pressure to meet unsatisfied demand.

Auckland residential work rose a seasonally adjusted 4.8 per cent in the three months through June, its eighth quarterly expansion, while house building shrank 4.3 per cent in Canterbury.

In non-residential work, Auckland activity shrank 3.3 per cent, its third quarterly contraction, while Canterbury work grew 18 per cent, the biggest expansion since September 2013.

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