Current activity is higher than peak 2005 levels, according to Stats NZ
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Building activity has increased by a seasonally adjusted 0.8% in the June 2018 quarter, according to new data released by Stats NZ.
The rise has reversed a 0.8% fall in the March 2018 quarter, and has been adjusted for higher construction costs and typical seasonal patterns to show the underlying changes.
According to construction statistics manager Mellissa McKenzie, the rise has been driven by building activity across all sectors, though residential housebuilding has accounted for the majority of the growth.
“We’ve seen quite high levels of building activity over the last couple of years, and we’re at higher volumes of activity than what we had at the previous peak back in 2005,” McKenzie told NZ Adviser.
“This has been due to a growth in construction in both the residential and non-residential sectors, though residential has driven most of the growth. We can also see from our building consent statistics that there is likely to be quite a lot of activity still in the pipeline, and we’re not seeing anything at the moment that might cause a drop in the level of construction activity any time in the near future.
“Having said that however, we have noticed a couple of construction companies fail in recent times and we’ve seen the construction sector suffer the impact of that.”
In terms of value and price effects, building activity rose by 1.8% in the June 2018 quarter compared with the March 2018 quarter. The growth was driven primarily by Auckland’s large non-residential projects, though other North Island regions also increased non-residential building values. The rises offset the fall recorded in Canterbury, which continues to wind down as post-earthquake rebuilds continue.
With KiwiBuild in the pipeline along with various other privately funded projects, activity looks set to continue holding on to its current steady levels.
