Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Building work to stay elevated with residential permits high

By Paul McBeth

Aug. 30 (BusinessDesk) - Economists expect construction work will stay elevated over the next year or two as the number of new residential building permits remain at 45-year highs and may get a tailwind from cheaper finance.

Some 35,472 residential building consents were issued in the year ended July 31, up 8 percent from a year earlier and the most since February 1974 when a record 40,025 permits were signed off, Stats NZ figures show. Those permits cover 5.8 million square metres at a value of $13.21 billion, up 2.7 percent and 9 percent respectively.

Meanwhile, non-residential building consents were up 11 percent on both a floor area and value basis at 3.53 million square metres and $7.57 billion.

"We believe house-building activity is likely close to a peak, but we expect residential construction activity to remain at high levels over 2019 in order for housing supply to make up the shortfall which has emerged in recent years," ASB Bank economist Jane Turner said in a note.

"Meanwhile, there are no signs of a slowdown in commercial construction despite weak business confidence levels seen over the year."

Fletcher Building chief executive Ross Taylor this month said the domestic construction outlook for the June 2020 financial year was very similar to 2019, although he noted residential permits might ease.

Construction firms expect to scale back their investment in both residential and commercial building over the coming year and share other sectors' gloom about the state of the economy.

Turner also noted commercial building issuance was strong with high demand for new accommodation.

"Furthermore, we expect the housing market to benefit from a pick up later this year, underpinned by lower mortgage rates, which should provide additional support to house building demand," she said.

Westpac New Zealand economist Satish Ranchhod agreed that the latest data indicated building work will remain elevated for some time, although he anticipates the pace of growth will slow.

"In part, that’s due to the continuing wind back of post-earthquake reconstruction activity which is providing a cap on nationwide building levels," he said.

Stats NZ figures showed seasonally adjusted dwelling consents were down 1.3 percent, although new house consents were up 4.8 percent. On an adjusted basis, new residential dwelling permits jumped 24 percent to 3,420 in July from the same month a year earlier, of which houses were up 21 percent at 2,101.

The value of non-residential work rose 27 percent to $658 million on an 8 percent increase in consented floor area to 321,000 square metres.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>

ALSO:

NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>

ALSO:

Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>

ALSO:

Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>

ALSO:


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>

ALSO:

Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO:

Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>