Supported by the continuous growing of the construction industry in Auckland while waning in Canterbury, the building activity has reached to 26-year high. The sector is expected to keep growing in next two years which will underpin New Zealand’s economic growth.
With $2.8 billion value for residential building and $1.6 billion value for non-residential, the actual value recorded for the quarter to December 2015 was $4.4 billion. “This is the most building activity we’ve seen since the series began 26 years ago, with total activity slightly higher than the previous record.” said Neil Kelly, senior manager of Statistics New Zealand business indicators. He also revealed other milestones—recorded high paid hours in the construction industry, over 1 million cubic meters for ready-mixed concrete production. Despite the fall, “Canterbury still accounted for one-quarter of the national total.” he added.
And there is prediction that the growth of the construction industry is not yet reached its maximum. “Residential and non residential construction are expected to be the major drivers of overall economic growth over the next couple of years. The data showing is not expected to be the peak.” said David Norman , Westpac industry economist. The prediction is based on the fact that there is strongest population growth since 1970 and a shortage of housing in Auckland now. Undoubtedly Auckland will be the main region for the construction boom but Waikato and Queenstown Lakes district are also the places to have an eye on due to their solid growth.
The seasonally adjusted value of building work increased in 5 of the 6 regional areas where the largest driver of the quarterly growth was Auckland and Canterbury was the only area recorded fall in value. However, the building activity increased 5.4% in South Island with Canterbury excluded. The rise was boosted by Otago work.