Residential building hits record high

Stats NZ building activity report shows value of residential building rose to $3.6bn

 The volume of residential building activity rose 4.1% in the September quarter, following a flat six months. Non-residential activity also picked up slightly, increasing by 0.6% following two quarters of consecutive falls.

“Residential building activity is at a record high, while non-residential activity peaked in late 2016,” said Construction Statistics Manager Melissa Mckenzie.

“While the volume of residential building activity is at a record high, the number of new homes consented was higher in the mid-1970s and 2004. This may reflect that homes and alterations being built now are often bigger, more complex, and subject to different regulations.”

The key difference between consents and activity is that the former looks at past building work, while the latter looks at future works.

By value, residential building activity was up 9.7% on a year ago to $3.6bn while non-residential was up 0.6% to $1.9bn. Seasonally adjusted, residential activity was up 5.2% compared to the June 2017 quarter while for non-residential it was up 1.3%.

In the regions

Auckland ($2.1bn), Canterbury ($998m) and Rest of the North Island ($848m) – which excludes Auckland, Wellington and Hamilton – were the regions to complete the highest total value of building activity.

In seasonally-adjusted terms, the total value of building work rose in all of the regions except for Canterbury as it drops away from the post-earthquake repairs.