The value of construction activity up by 11.8% in the June quarter compared to a year earlier

The value of construction activity up by 11.8% in the June quarter compared to a year earlier

The value of construction activity continues to grow strongly, with $6.232 billion of building work put in place in the second quarter of this year, up 11.8% compared to to the second quarter of last year and up 2.0% compared to the first quarter of this year, according to Statistics NZ.

On an annual basis, $24.265 billion of new building work was put in place in the year to June, up 10.4% on the previous 12 months.

Growth was strongest in the non-residential sector which recorded $2.254 billion of new work in the second quarter, up 14.8% on the same quarter of last year.

In the residential sector $3.978 billion of new building work was put in place in the second quarter, up 10.2% compared to the second quarter of last year.

However, not all types of building work showed growth.

Residential alteration and additions work was down 1.6% in the second quarter compared to the same period of last year, while building work on office buildings was down 1.1% and farm building work was down 14.8% over the same period.

Around the major regions, Auckland recorded the strongest growth, with the total value of all new building work in the region (residential and non-residential) hitting $2.697 billion the June quarter, up 20.4% compared to the second quarter of last year.

Over the same period, Waikato recorded $559 million of new building work (+11.7%), Wellington Region recorded $521 million (+8.3%) and Canterbury recorded $891 million (+2.7%).

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A hell of a lot of building going on in Auckland! Places going up everywhere!

Makes you wonder if in a years time there will be a glut.

Sure seems to be heading that way in the apartment sector

I guess a glut in apartments will be quickly met with authorities raising LVR restrictions, resuming migration to 2016 levels and lifting foreign buyer ban. Voila, we have >3% GDP growth once again, maybe even 4.

I can imagine how big a nightmare this scenario looks like to NZ National and its supporters, since the party's only hope of swinging back to power lie in the incumbents being unable to do any or all of that.