Slow time for building sector

Business is slow for builders in Rotorua at the moment.

Rotorua's building sector has improved slightly but a local builder says business remains slow.

Statistics New Zealand February data showed six residential building consents were issued in Rotorua - up from five issued during February last year.

Meanwhile, the value of residential buildings consented in February in the Bay of Plenty was $32 million, $4 million down from $36 million in February the previous year.

Owner of Warren Monk Builders, Warren Monk, said business had been slow in Rotorua. "There is not a lot of new housing going on and additions and alterations haven't taken off so it has been quiet for about seven years.

"I always have work because I am a sole trader and there is always work on bathrooms and kitchens but the new-housing people have found it very tough."

Lack of land was an issue in Rotorua and this was inhibiting the building industry, Mr Monk said.

"We need more subdivisions and the council needs to release more land. There is not the space.

"The Government is promising to fix it. I haven't seen it yet and I don't know what is going to happen."

Mr Monk said he expected business to pick up in the coming years as the Rotorua market started to grow.

Nationally, the number of new dwelling consents issued dropped by 0.6 per cent in February 2015, compared with the same month in 2014. A total of 1758 new dwellings were consented in February 2015, including 160 apartments.

Statistics New Zealand business indicators manager Neil Kelly said building consent trends had begun to decline in 2015.

"The trend for new dwellings has more than doubled since March 2011 but it is now showing signs of decreasing after generally increasing for almost four years."

The regions which consented the most new dwellings were; Auckland with 528 consents issued (including 98 apartments), Canterbury with 517 issued (including 62 apartments) and Waikato with 195 building consents issued in February 2015.

More than $1.2 billion of building work was consented in February - $769 million of residential work and $469 million of non-residential work.

For the whole year ending in February 2015, $14.8 billion of building work was consented - up 18 per cent on the year ended February 2014. This comprised $9.6 billion of residential work and $5.3 billion of non-residential work.