CONSTRUCTION ACTIVITY continues to fuel activity across the economy. Further, with the dairy sector boom having come to a grinding full stop as international prices plummet, the construction sector is now pretty much on its own as the engine of the country’s economic growth.
The 12-month running total for residential building consents stood at 24,100 in September 2014. Year-on-year, residential building consents were up 14 percent with consents for residential housing in Southland, Auckland, Tasman and Otago leading the way. Annualised totals, as shown in the figure below, indicate that consents could potentially reach the 26,000 mark, last seen in September 2007, and well ahead of the 13,500 consents witnessed in the 12 months to September 2011.
The 12-month running total for residential building consents stood at 23,975 in August 2014. Year-on-year, residential building consents were up 23 percent with consents for residential housing in Canterbury, Auckland, Otago and the Waikato leading the way. Annualised totals, as shown in the figure below, indicate that consents could potentially go back to the 26,000 mark seen in August 2007, and are well ahead of the 13,500 consents witnessed in the 12 months to August 2011.
As mentioned in our latest edition of BEV, the three months to June has seen activity in the building and construction sector step up to another level. The latest figures from the housing and non-residential sectors for July show this momentum continuing.
The Minister of Finance, Hon Bill English, announced in Budget 2013 that $7.2 million will be spent over four years on housing accords. The first accord has already been agreed with Auckland Council, and special housing areas are expected to be designated later this year.
Residential building consents steadily grew throughout 2012. The year ended with 16,960 consents being issued in the 12 months to December 2012, an increase of 24 percent on the year earlier.
In the three months to November 2012 there were 4,800 new residential building consents issued, while the 12-month total for the year ending November 2012 stood at 16,670.
Now that the numbers are in for the first quarter of 2012, it can be seen that there has been a steady improvement in the number of residential building consents issued. In the last quarter of 2011 3,760 residential building consents were issued. In the first quarter of 2012, this number has crept up to 3,860. However, any enthusiasm in regards to an up-turn in the industry needs to be treated with caution - 2011 was not a good year for the building construction industry - and any improvements in the numbers or our forecasts are coming off a low base, as shown in the figure below.
January is usually a slow month in terms of residential building consents.