Quarter’s building consents near to $5 billion

Jane Turner.
Jane Turner.
Auckland accounted for the lion’s share of building work put in place during the past quarter, with all building work across the country up 7% in value to $4.9billion.

Nationally, residential activity rose 5.6% to $3.1billion and  non-residential was up 5.3% to $1.8billion, with Auckland accounting for $1.8billion; a 39% gain on the same quarter last year. Canterbury was $1.2billion, a 6.5% gain.

Statistics New Zealand data yesterday showed Auckland activity was up 13% on the previous quarter, underpinned by more commercial, industrial and other non-residential work.

"In the quarter to June, Auckland building activity grew faster than in any other region" SNZ’s business indicators senior manager Neil Kelly said.

ASB senior economist Jane Turner said the total building work put in place was much stronger than ASB and the market expected.

"In particular, the second-quarter growth in construction activity was surprising given the soft patch in consents data earlier this year. This suggests that capacity constraints and growing backlogs could be contributing to a strong pipeline of activity in the absence of new consent issuance," Mrs Turner said.

She noted while Auckland continued to lead, the lift in construction was now fairly broad-based across the country.

Auckland’s residential work rose 8% and non-residential was up 22%.

Auckland and Canterbury aside, Wellington building activity was down 10%, Waikato was up 3.3%, rest of North Island up 8.9% and rest of South Island up 7%.

Other provinces are not itemised in the data.

simon.hartley@odt.co.nz

Add a Comment