Building and Construction Sector Remains Solid

May 30, 2007

Building and Construction Sector Remains Solid

April's building consent figures continue to confirm ongoing stability within the building and construction sector, says chief executive of the Registered Master Builders Federation, Pieter Burghout.

Today's report from Statistics New Zealand shows the value of residential building consents for April 2007 was $575 million, a significant increase of $131 million (ie 30%) on April 2006. The number of building consents for new housing units issued in April was 1782, an increase of 220 from April last year. Even without apartments in the equation, there has been a slight increase in consents issued last month.

For the year ended April 2007, the number of consents issued for residential buildings remained steady - with a 2.4 percent increase - while the value of these rose by 12 percent to $845 million.

"The increase in the value of consents in April 2007 continues the trend we have seen in recent months where the quality end of the housing market remains strongest overall. Most Registered Master Builder members are still reporting good volumes of work ahead of them - meaning a positive outlook ahead, at least for the short-medium term," Mr Burghout says.

Commercial building consents showed a significant jump of $88 million in value for April 2007 compared to the same period in 2006, although the overall trend in value over the last 12 month period remained fairly flat.

Statistics New Zealand says the major commercial increase was in shops, restaurants and taverns while the largest decrease was in hotels and other short-term accommodation.

"Overall, the building and construction industry continues to enjoy the general 'steady as you go' nature of the current environment. We continue to expect some softening throughout the remainder of 2007 and early 2008, but certainly the current trends remain very positive."

ENDS

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