Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Construction activity expected to hit $43.5 billion

Hon Jenny Salesa Minister for Building and Construction

The 2019 National Construction Pipeline Report, released today, forecasts that construction activity across the country will continue to remain strong for at least the next five years.

“This year’s report shows that the value of construction activity is expected to hit $43.5 billion at its peak,” says Minister Salesa, Minister for Building and Construction.

“This is great news for the economy and proof that the Government’s policies and work in the construction sector are hitting the mark. Sustainable growth in our construction sector supports jobs and builds the houses, schools and hospitals that are essential to all of our wellbeing.

“This Government promised an economy that is growing and working for all of us, and this report shows we are doing precisely what we promised.

“The report is a projection of national building and construction activity through to 31 December 2024, which helps provide certainty to the construction industry. It also means Government and the sector can work together to support better planning, better scheduling of investment in skills and capital to meet future construction needs, and better coordination of construction procurement to improve scheduling of construction projects.

“It can help moderate the boom-bust cycles that negatively impact productivity, innovation, employment, skill levels and quality in the construction industry.

The report highlights that: • residential building makes up 58 per cent of national construction and is expected to grow to $26.5 billion • consents for residential dwellings are forecast to reach 38,000 a year by 2022. Last year, almost 33,000 residential consents were issued • in Auckland, the value of residential activity is forecast to reach more than $12 billion, which will be a 39 per cent increase on 2018 levels • non-residential building is expected to peak at $9 billion, and infrastructure activity is forecast to increase to $8.3 billion • infrastructure activity is forecast to overtake non-residential activity by 2023.

Minister Salesa says that the Government has introduced a broad-based set of initiatives to support the construction industry and respond to the challenges it faces – for example, planning significant reforms to the Building Act, leading the Construction Skills Action Plan, setting up the independent New Zealand Infrastructure Commission Te Waihanga to ensure New Zealand gets the quality infrastructure investment needed to improve our long-term economic performance and social wellbeing, and working with the sector to establish the Construction Sector Accord.

Other highlights from the report In Auckland, over 96,000 residential dwellings are expected to be consented from now until 2024. It’s forecast that 58 percent of consents will be for multi-unit dwellings (apartments, townhouses, retirement village units).

Wellington experienced strong growth (15 per cent) in residential building and nearly 19,000 dwellings are expected to be consented from now until 2024. Over 40 per cent of these are forecast to be multi-unit dwellings. Non-residential building and infrastructure spend is expected to remain strong, with a focus on building and repair work from the Kaikoura earthquake, water, hospital and civic developments and public transport.

Canterbury is bucking the growth trend, with total construction value reducing by 9 per cent in 2018 to $6.6 billion. And while residential building is forecast to maintain its current levels for the next two years, it is expected to drop from 2022, reaching $1.2 billion by 2024.

Outside the metropolitan centres, total construction grew to $7.7 billion in 2018 and is expected to grow to $8.4 billion over the next two years, mostly from residential building.

Detached dwellings (standalone houses) are currently the most common type of new dwelling in New Zealand. Townhouses are the next most common, and since 2005 have been consented in higher numbers than apartments. Apartments are typically the densest form of dwelling type. Consents are nearing the levels of the apartment boom in the early-to-mid 2000s but have not grown to quite the same extent as townhouses over the past few years.

The report can be found here: The report is based on building and construction forecasting by the Building Research Association of New Zealand (BRANZ) and Pacifecon NZ Ltd data on researched non-residential building and infrastructure intentions. It is funded by the Ministry of Business, Innovation and Employment.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Allegations Of Left Wing Media Bias

“Left wing bias” accusations date back at least to the mid 1990s, when complaints were commonly being levelled at RNZ’s Morning Report programme, largely by National MPs discomfited by being interviewed by Kim Hill.

The charge of left wing bias was ridiculous then, and is ridiculous now. More>>


Next Wave Of Reforms: Gun Registration And Licensing Changes Announced

“The Bill includes a register to track firearms and new offences and penalties that can be applied extraterritorially for illegal manufacture, trafficking, and for falsifying, removing, or altering markings – which are a new requirement under the Firearms Protocol.” More>>


Gordon Campbell: On Labour’s Mishandling Of The Alleged Sexual Assault

The focus of Labour’s alleged sexual assault scandal has now shifted from the party organisation to the Beehive... This is now a crisis of Beehive management and response, not something occurring at a distance within the party organisation. More>>


'History Rectified': Rua Kēnana To Be Pardoned

An official pardon for Tūhoe prophet and leader Rua Kēnana is one step closer after the Te Pire kia Unuhia te Hara kai Runga i a Rua Kēnana: Rua Kēnana Pardon Bill was read in Parliament for the first time today. More>>


Mental Health: Initial Mental Health And Wellbeing Commission Appointed

The Government has announced details of the initial Mental Health and Wellbeing Commission which will play a key role in driving better mental health in New Zealand. More>>


people outside the meeting house at WaitangiEducation: NZ History To Be Taught In All Schools

“We have listened carefully to the growing calls from New Zealanders to know more about our own history and identity. With this in mind it makes sense for the National Curriculum to make clear the expectation that our history is part of the local curriculum and marau ā kura in every school and kura,” Jacinda Ardern said. More>>


Sexual Assault Claims Mishandled: Labour Party President Resigns

Jacinda Ardern: “This morning I was provided some of the correspondence from complainants written to the party several months ago. It confirms that the allegations made were extremely serious, that the process caused complainants additional distress, and that ultimately, in my view, the party was never equipped to appropriately deal with the issue…" More>>


Budget Process: Wellbeing To Be Enshrined In Law

Legislation has been introduced in Parliament to ensure every Government considers the wellbeing of New Zealanders when creating future budgets. More>>

National In China: Bridges Praises CCP, Meets Law Enforcement Head

A recent trip to China has raised questions over who the Opposition leader Simon Bridges met with and why... Anne-Marie Brady, a Canterbury University professor and expert on Chinese politics, has described Guo Shengkun as the leader of the Chinese secret police. More>>


Gordon Campbell: On The SIS/GCSB’s Compliance With Torture

Torture is a crime under international law. New Zealand has signed (a) the UN convention against torture and (b) formal agreements about how armed conflict should be conducted. That’s the legal backdrop to the fascinating report released this week by the SIS Inspector-General.





InfoPages News Channels