Construction activity heating up in New Zealand

New Zealand is demonstrating a very positive construction outlook, according to Turner & Townsend’s International Construction Market Survey 2019.

The survey shows that of the 64 global markets examined, 35 markets are warm, hot or overheating; 21 are lukewarm and eight are cool. Eighteen new markets were added to the survey in 2019 with New Zealand making its debut. Auckland and Christchurch are considered warm.

This year, San Francisco has taken the number one ranking as the most expensive place to undertake construction activities. New York, London, Zurich and Hong Kong followed. Bangalore was the least expensive followed by Istanbul, Guangzhou, Nairobi and Beijing.

Auckland and Christchurch’s positions were 33 and 35 respectively. In Australia, Sydney is positioned at 13, Melbourne is ranked at 31, Brisbane is placed at 34 and Perth is 38.

Construction costs in Auckland and Christchurch increased by 3.5 per cent in 2018. In 2019 construction costs in both regions are expected to increase by four per cent.

Global construction costs are set to rise 4.1 per cent in 2019, following a 4.2 per cent increase in 2018 and 4.9 per cent in 2017.

Gary Emmett, Economist for Turner & Townsend comments: “The outlook remains positive for New Zealand’s construction sector. As housing sectors flatten off in Christchurch and Auckland, a solid backlog of government funded construction activity in infrastructure, health and education should help defray any headwinds occurring in the global economy.

ICMS website page to download the full report

https://www.turnerandtownsend.com/icms2019/

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