NZ construction value hits 18-month high in June quarter

By Paul McBeth

Sept. 9 (BusinessDesk) – The value of New Zealand’s total building work hit an 18-month high in the June quarter as the construction sector bounces back from a slump.

The total value of building work put in place rose to $2.89 billion in the three months ended June 30, according to Statistics New Zealand, the highest since the December quarter in 2008. The value of residential work surged 21% to $1.69 billion from the March quarter, while commercial work gained 13% to $1.91 billion.

Construction has bounced back from its low in September last year, though it’s still 18% below a peak in December 2007, and the sector will get a fillip from the rebuilding of Christchurch after the 7.1 magnitude earthquake caused some $4 billion worth of damage to the city.

The property market has been struggling this year after a shortage of housing stoked prices as returning expatriates and new migrants looked for new homes.

(BusinessDesk)