Auckland sees residential construction work double in four years

The value of construction in most regions in New Zealand increased in the third quarter of 2015 with Auckland seeing a new high of $943 million worth of residential work, up $107 million from a year ago.

Overall building work worth $4.2 billion was put in place in the September 2015 quarter, up 4% on the September 2014 quarter, according to official figures from Statistics New Zealand.

‘The value of building work increased in most regions. Similar to last quarter, residential work grew most in Auckland, while non-residential work grew most in Canterbury,’ said Statistics New Zealand business indicators manager Neil Kelly.

In Auckland, a new series high of $943 million worth of residential building work was recorded in the September 2015 quarter, up $107 million from a year ago. The current quarter's value is double what it was four years ago in the September 2011 quarter.

After removing price changes and seasonal variations, the national volume of all building activity increased 0.5%, following a 1.6% increase in the June 2015 quarter. Within this, the volume of residential work increased 2.9% while non-residential work fell 2.6%.

The volume trend for non-residential building activity grew 0.4% in the September 2015 quarter, a similar level as the previous series high in the March 2006 quarter. Meanwhile, the residential building activity volume trend grew 1.4% in the latest quarter, but the level was still 6.3% lower than the June 2004 quarter peak.

The overall building activity volume trend grew to a level last seen 10 years ago in the June 2005 quarter, the previous series peak. 

Meanwhile, official data also shows that all 16 regions of New Zealand are projected to have more households in 2038 than in 2013 and most territory authority areas (TAs) will also have more households.

The Auckland region is projected to account for about half of the national growth in the number of households between 2013 and 2038, increasing from 500,000 to 750,000. Over the same period, the region is projected to account for roughly 60% of New Zealand's population growth. By 2038, some 35% of all households in New Zealand will be in the Auckland region, up from 30% in 2013.