Sharechat Logo

NZ industrial, accommodation building work offsets slowing residential work in 4Q

Wednesday 7th March 2018

Text too small?

The value of New Zealand building work rose in the fourth quarter as a flurry of activity in industrial and commercial accommodation properties such as hotels made up for slower residential construction. 

The seasonally adjusted value of total building work rose 2.3 percent on quarter in the three months ended Dec. 31 having gained 4.1 percent in the September quarter, Statistics New Zealand figures show. Non-residential work lifted 5 percent in the quarter, accelerating from a 1.9 percent pace in the prior quarter while residential work increased 0.9 percent versus a 5.3 percent increase in the September quarter. 

The volume of total building activity, which excludes the effects of higher construction costs and typical seasonal patterns, advanced 1.4 percent in the quarter, led by a 4.1 percent increase in non-residential work, and a more modest 0.4 percent gain in residential construction. 

"Work on factories and industrial buildings, and accommodation buildings helped boost non-residential activity in 2017," construction statistics manager Melissa McKenzie said in a statement. “In contrast, some of the biggest building categories, such as offices and shops, decreased compared with 2016." 

The lift in accommodation buildings - which includes hotels, motels, boarding houses and prisons - was due to record high visitor levels in 2017, Stats NZ said. "The value of building work on accommodation buildings is likely to stay high into the near future, as the value of consents for tourism-related buildings surged in 2017," it said. 

New Zealand's construction pipeline has been underpinned by a shortage of housing, primarily in Auckland, which is expected to peak in 2020 with some $20 billion of residential work predicted. 

Today's figures show the actual value of all building work rose 5.5 percent to $5.62 billion in the three months ended Dec. 31 from the same period a year earlier, with the value of residential work up 7.7 percent to $3.64 billion while non-residential work increased 1.7 percent to $1.98 billion.

In Auckland, the actual value of all building work rose 4.3 percent on the year to $2.1 billion while in Canterbury it fell 6.6 percent on the year to $1 billion. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports