RMBF sees a more positive outlook

Media Release
28 August 2009

RMBF sees a more positive outlook

The Registered Master Builders Federation (RMBF) is pleased to see that the new housing consent numbers are continuing to slowly trend upwards.

RMBF CEO Warwick Quinn said building consent figures released today by Statistics New Zealand are a reflection on the level of enquiry our members have been experiencing over the last 4-5 months and are tentative signs that our industry is beginning what will probably be a long road to recovery.

“We’ve been seeing small incremental rises in the new build consent numbers since early this year and the falls we were experiencing since mid 2007 have ceased. That’s a good indicator that we’ve been through the worst of it.” Mr Quinn said.

“However, this positive trend in building consents must be kept in perspective and that the numbers are still very weak. We believe that there will never be a better time to build or renovate then at this time and consumers have a window on which to capitalise on this opportunity. Low financing costs, reduced builder margins, cheaper land and increased competition for work will only last so long as on the other side of the equation property values are stabilising, immigration numbers are increasing and we are building below our required numbers.

“While we still have a way to go to get to the 20,000 new homes a year to meet demand and ensure we have a vibrant industry that retains its skills level, the outlook is definitely more positive than this time last year,” says Mr Quinn

The seasonally adjusted number of new housing units authorised for July is at its highest since September last year. The numbers for apartments has dropped off slightly for the month and the commercial sector has had a small decrease of 3.2 percent since July 2008.

ENDS

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