Sharechat Logo

NZ residential building activity falls in March quarter

Wednesday 6th June 2012

Text too small?

New Zealand's house building activity shrank in the first three months of the year as most new work was largely in non-residential construction.

The value of residential work put in place fell a seasonally adjusted 1.5 percent to $1.35 billion in the three months ended March 31 from the previous quarter, while non-residential construction rose 1.8 percent to $1.15 billion, according to Statistics New Zealand.

That left the value across all buildings unchanged at $2.5 billion. "The overall decrease in the March 2012 quarter was due to a fall in residential work, which more than offset a rise in non-residential work," industry and labour statistics manager Blair Cardno said in a statement.

"Building activity in Canterbury showed signs of picking up after the earthquakes, particularly for non-residential building work." The value of actual work done lagged the pace of new building issuance as companies prepare to ramp up construction investment. Last month's National Bank Business Outlook showed optimism in both residential and commercial construction investment intentions.

"We expect a modest improvement in residential building activity over the coming year, in light of the increase in dwelling consent issuance in recent months and signs of housing supply constraints in some regions such as Auckland and Christchurch," ASB economist Christina Leung said in a note.

"The subdued level of construction activity adds to the case for little urgency for an official cash rate increase." The value of new dwelling work put in place shrank 3.8 percent to an unadjusted $978 million in the March quarter from the same period a year earlier, was 15 percent lower on an annual basis at $4.05 billion.

Factories and industrial building construction reported the biggest growth in non-residential construction, up 38 percent to $116 million, for a 22 percent annual gain $434 million. Commercial building construction rose 7.7 percent to $277 million in the quarter, and was up 7.5 percent to $1.37 billion on the year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises as US-China trade, Brexit tensions ease
SkyCity shares hit 7-week low as fire encapsulates convention centre
Wrightson showcases Fruitfed Supplies as horticulture stands out
Fonterra rivals fear dairy giant will get leg up from law overhaul
Wellington Drive remains in the black as it raises operating forecast
OMV plans further maintenance at Pohokura
Sky continues sports drive with extension to netball rights
Apple's asset-shuffling puts $270m value on PowerbyProxi
Fonterra lifts payout forecast on improving global dairy prices
22nd October 2019 Morning Report

IRG See IRG research reports