'Unprecedented' building activity seen on back of Auckland 29 Jul 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Environmental edge to Auckland’s RWC 2011 prep Sport
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
'Unprecedented' building activity seen on back of Auckland's pent-up housing demand
By Paul McBeth
July 29 (BusinessDesk) - An "unprecedented" level of building work is predicted over the coming six years, due largely to Auckland's housing boom, a new reports says.
Building and Housing Minister Nick Smith heralded the latest National Construction Pipeline Report as confirming the nation is "building more than we have ever before" with $209.4 billion of work projected over the next six years, peaking in 2016 at $36.5 billion of work.
The Ministry of Business, Innovation and Employment-commissioned report showed Auckland building activity will peak in 2018 at $16.3 billion, of which about 60 percent will be residential work. The value of residential work is expected to grow 22 percent over that period, while non-residential building is expected to rise by 17 percent.
"Today's report points to a golden era for New Zealand's building and construction industry," Smith said in a statement. "The challenge for government is to ensure we have the skills and capacity to meet the demands of this growth, and that the regulatory measures are in place so that quality is not compromised for quantity during this period of unprecedented growth."
Still, the report, prepared by Building Research Association of New Zealand and Pacifecon, said while the value of construction will "reach a higher peak than ever before" it "is not expected to result in a higher number of dwellings than ever before" due to more expensive costs per dwelling.
The report's authors said the primary driver for more expensive dwellings was "an increase in quality and, therefore, cost per square metre built."
The report, prepared by the Building Research Association of New Zealand and Pacifecon, estimates 94,400 new dwelling consents will be issued in Auckland between January 2013 and December 2020, of which 53,500 will be detached homes. Some $51.8 billion of residential work is expected between 2015 and 2020, almost half the $109.3 billion of residential work predicted across the country.
The Reserve Bank has cited forecasts that the country's biggest city has a supply shortfall of between 15,000 and 20,000 houses, and needs 10,000 new consents annually to meet population growth. Soaring Auckland house prices have been a concern for the central bank as record inbound net migration and a lack of building activity after the nation's finance companies collapsed, eroding available credit for property development.
The Canterbury earthquakes in 2010 and 2011 put even more pressure on the cost of construction as the rebuild effort soaked up much of the nation's construction workforce.
Since the September quarter of 2010, the cost of new housing has climbed 21 percent, according to government data, compared to just a 7.8 percent lift across broader consumer prices.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more