Building work ramps up in 3Q, residential activity at record high

The value of New Zealand building work gained in the September quarter. Photo / 123RF

The value of New Zealand building work gained in the September quarter, as both non-residential and residential activity increased, after a relatively flat start to the year, says Statistics New Zealand.

The seasonally adjusted value of total building work rose 4 per cent in the three months ended September 30, having gained 0.9 per cent in the June quarter. Residential work gained 5.2 per cent on a seasonally adjusted basis while non-residential work increased 1.6 per cent in the quarter.

Total building activity advanced 2.7 per cent in the quarter. Residential work rose 4.1 per cent, a number which excludes the effects of higher construction costs and typical seasonal patterns, while non-residential work increased a seasonally adjusted 0.6 per cent in the quarter.

"Residential building activity is at a record high, while non-residential activity peaked in late 2016," construction statistics manager Melissa McKenzie said.

"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 quarterly statistics are a measure of past building activity, whereas building consents issued, which showed a decrease in the October 2017 month, is an indicator for the pipeline of upcoming building work, Stats NZ said.

The actual value of all building work rose 4.9 per cent to $5.16 billion in the three months ended September 30, with the value of residential work up 7.6 per cent to $3.36b while non-residential work increased 0.2 per cent to $1.8b.

The value of all building work in Auckland was $1.95b, up 6.8 per cent on the year while it was $998 million in Canterbury, down 14 per cent on the year. Compared with the June 2016 quarter, the value of residential building work increased 6.6 per cent in Auckland, to $1.28b or 38 per cent of the New Zealand total, Stats NZ said.