New building work worth $5.51 billion in the third quarter of this year - Statistics NZ

New building work worth $5.51 billion in the third quarter of this year - Statistics NZ

The total value of new buildng work commenced hit $5.51 billion in the third quarter of this year, up 6.4% compared to the same period of last year, according to Statistics NZ's Survey of Building Work Put in Place.

The biggest increase was in new residential building work, which was worth $3.606 billion in the third quarter of this year, compared to $3.357 billion in the second quarter of this year and $3.286 billion in the third quarter of last year.

Non-residential building work was worth $1.904 billion in the third quarter of this year compared to $1.8 billion in the second quarter of this year and $1.893 in the third quarter of last year.

Auckland accounted for the lion's share of activity, with $2.096 billion of new building work put in place in the third quarter of this year, up 13.1% compared to the same period of last year.

In the Waikato $512 million of new building work was put in place (+8.5% on a year earlier), in Wellington it was $471 million (+23.4%) and in Canterbury it was $998 million (-16.7%).

It was the fourth consecutive quarterly decline in Canterbury where the rate of decline in new buidling work is steadily increasing.

"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," Statistics NZ construction statistics manager Melissa McKenzie said.

"This may reflect that homes and alterations being built now are often bigger, more complex and subject to different regulations," she said.

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The Chch slowdown has long been apparent. Colliers estimate that CBD office vacancy is around 23%...

Adjacent to our own leased small office in Christchurch, there are two other unleased spaces totalling around 170 squares, vacant since the building was erected 4 years ago.

Most commercial development, such as it is, is occurring outside the ex-CERA-controlled CBD. And the CERA successor, 'Otakaro', part-funded by the City Council plus Gubmint, has just tossed the head contractor (Leighs-Cockram) for a large 'anchor project' - the Metro Sports Facility - under the bus, possibly because LC was truthful about the site geotechnical conditions and their position re contract risk. So Otakaro's chances of Interesting any other contractor in MSF (and, by extension, any other Anchor Project) are thus close to zero.

On the bright side, however, the City Council is spending $156m over the next 10 years on Cycleways. A hundred mill here, a hundred mill there, pretty soon it adds up to Real Munny....

Similar story here. The new office block near my work is still 80% empty after about 6 months.

To their credit CCC have *finally* bought back the 1 hour free parking that used to exist 7 years ago.

Are these figures adjusted for inflation?
We are well-aware that the inflation in cost of construction in this country is running in double digits owing to rising wages and surging construction material prices.

I can confirm that construction in Wellington is exceptionally busy, and there's a lot of forward work. I'm guessing that WCC not holding up building consents has helped accelerate the construction sector.