Archive | Construction

Auckland plays superstar in flat national consents picture

Published 30 August 2018
Auckland played a superstar role with a leap to record levels of new housing consents in July, and for the July year.

Nationally, the picture was more sedate – flat in July (down by just 10 from July last year) and 8% ahead for the year.

As consents for suburban townhouses & flats jumped 53% for the month, 26% for the year, the standalone share fell 6% for both month & year.

Alterations & additions made big contributions to the totals for both month & year.

The total value of all consents – residential & non-residential – for the month fell 2%, but was up nearly 10% for the year. The non-residential sectors were down 10.3% from a year ago but up 10% for the year.

Auckland’s share of total residential consents jumped from 28% last July to 45%, and to 39% for the year.

Statistics NZ construction indicators manager Melissa McKenzie said today the 12,845 consents for new homes in the last 12 months, up 28% from the previous year, was the second highest tally in Auckland since records began nearly 30 years ago. “The highest on record was 12,937 new homes in the June 2004 year.”

The 6039 standalones made up 48% of all new homes consented in Auckland in the last 12 months, while the 3032 consents for townhouses, flats & units were a record.

The national consent numbers for new homes in July and the year to July, compared to July last year, and the latest 12 months compared to the previous 12 months:

Total consents for new homes: 2752 (2762), down 0.4%; 32,850 (30,404), up 8%
Total value for new homes, plus alterations & additions: $1.195 billion ($1.179 billion), up 1.4%; $14.2 billion ($12.9 billion), up 10%
Alterations & additions, $181 million ($160 million), up 13.1%; $2.1 billion ($1.9 billion), up 10%
Standalone homes: 1731 (1900), down 8.9%; 21,007 (21,229), down 1%
Apartments: 347 (367), down 5.4%; 3902 (2855), up 36.7%
Retirement village units: 139 (145), down 4.1%; 1996 (1607), up 24.2%
Suburban townhouses & flats: 535 (350), up 52.9%; 5945 (4713), up 26.1%
Standalone share of consents:  62.9% for the month (68.8%); 63.9% for the year (69.8%).

The Auckland picture

Around Auckland, consents were up in 9 wards and down in 4 for the month (2 of those falls by just 1 & 3). For the year, they were up in 11 wards, down in 2.

Auckland residential consents, for July & year to July compared to July last year and the previous 12 months:

Region: 1250 (774 in July 2017), up 61.5% from last July, 45.4% of national total (28% last July); 12,845 (10,051), up 27.8%, 39.1% of national total for 12 months (33%)
Rodney: 54 (83), 766 (1004)
Albany: 223 (159), 2570 (2529)
North Shore: 25 (38), 708 (516)
Waitakere: 119 (42), 739 (576)
Waitemata & Gulf: 182 (183), 1407 (870)
Whau: 44 (16), 462 (353)
Albert-Eden-Roskill: 79 (14), 887 (800)
Orakei: 30 (27), 389 (255)
Maungakiekie-Tamaki: 30 (34), 769 (482)
Howick: 68 (34), 881 (363)
Manukau: 59 (18), 1043 (404)
Manurewa-Papakura: 256 (55), 1508 (949)
Franklin: 81 (71), 716 (950)

All construction for July compared to July last year, and the latest 12 months compared to the previous 12 months:
Total: $1.75 billion ($1.786 billion), down 2%; $21.463 billion ($19.53 billion), up 9.9%
Non-residential: $517 million ($576 million), down 10.3%; $6.824 billion ($6.2 billion), up 10%

Attribution: Statistics NZ tables & release.

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Wynyard Quarter project manager wins top Institute of Building award

Published 27 August 2018

Jason Carnie.

A project manager for Hawkins Construction Ltd, Jason Carnie, won the NZ Institute of Building’s supreme award at the weekend for his role in leading the Wynyard Quarter Innovation Precinct project in Auckland.

While Mr Carnie was a winner, the Hawkins business was sold by the McConnell family to Downer EDI Ltd last year.

The institute introduced 2 new award categories, one for consultants and the other interdisciplinary collaboration, which NZIOB chief executive Malcolm Fleming said broadened the target range of entrants “beyond primarily recognising project managers running commercial construction projects”.

On Mr Carnie’s supreme award, and the award in the $50-95 million category, the judges said: “This project had a tight 20-month timeline & multiple challenges. The ground was contaminated with heavy metals, petrochemicals & asbestos while the high tide mark sat 1.5m below ground. This required innovative solutions including: the first New Zealand use of state-of-the-art vapour & waterproof system, Coreflex60; high level adoption of building information modelling (BIM); and the development of a new health & safety (H&) monitoring system SOS that logged H&S issues via smart phones/tablets.

“Several of the innovations created are now being adopted by Hawkins or Precinct Properties across their respective future projects. The project was delivered on time & within budget.”

Young achievers award

Geoff Nash.

The BCITO young achievers award went to Geoff Nash, Auckland regional manager for Brosnan Construction Ltd. Mr Nash began his career as a joinery apprentice at Total Timba on leaving school. While undertaking his apprenticeship, he completed a national diploma in construction management at Unitec. In 2009 & 2010, he won back-to-back master joiners apprentice awards, while completing his diploma. He has since completed a national diploma in quantity surveying and, armed with his trade qualification & 2 diplomas, sought employment with a main contractor, and to enrol in Unitec’s bachelor of construction economics course.

Now 29, Mr Nash has completed his degree and has just passed the 5-year milestone with Brosnan Construction Ltd. He leads a team of 30 charged with securing & delivering $40 million/year of commercial construction projects in the Auckland region, and recently led the Auckland team on the successful open-book negotiation for the Spencer on Byron Hotel remediation project in Takapuna. The judges said Mr Nash was a standout winner, had a quest for knowledge that would see him “broadening his career to reach whatever level he chooses”.

The winners of the 6 project cost categories awards were:

Projects under $5 million (Resene):
Winner: Greg Guy, Prosper Northland Trust
Project: Te Kakano (the Seed), the precursor to the larger Hundertwasser Art Centre

Projects $5-8 million (Steel Construction NZ):
Winner: Brendan Keenan, project manager, & Gary Davidson, site manager; Naylor Love
Project: Christ’s College Kitchen Tower restoration, Christchurch

Projects $8-20 million (Hilti NZ)
Winner: Cameron Orr, Naylor Love, Dunedin
Project: The Otago Polytechnic’s new Te Pa Taurira student accommodation village

Projects $20-50 million (Colorsteel):
Winner: Jimmy Corric, NZ Strong Group
Project: The Manukau Bus Station, Auckland

Projects $50-95 million (Allied Concrete):
Winner: Jason Carnie, Hawkins
Project: 12 Madden St, Wynyard Quarter Innovation Precinct, Auckland

Projects over $95 million (Aecom):
Winner: Craig Treloer, project director, & Phil Helleur, project manager, Hawkins
Project: The 350mPier B extension at Auckland International Airport, Auckland

4 more specialist awards

The James Hardie innovation award, recognising innovation in the industry demonstrated within a project or through an innovative new product or procedure, was won by Dr Mikael Boulic, a senior lecturer at Massey University’s School of Engineering & Advanced Technology, Auckland.

The judges found Mr Boulic was incredibly passionate about his classroom environment monitoring innovation, SKOMOBO, an instrumentation system that monitors CO₂, relative humidity, air temperatures and air-particles inside classrooms. The collection of such data provides a better understanding of what is happening inside teaching spaces, intended ultimately to lead to solutions being implemented or developed that will provide healthier, warmer & drier learning environments. SKOMOBO costs well under one-tenth of comparable instruments (about $500 versus $15,000) and has both internal memory & the ability to live feed to a server, therefore making it a perfect tool for long-term data collection.

Mr Boulic conceptualised the project, received $100,000 from BRANZ to build a prototype, brought together a team of researchers and supervised the inhouse manufacture of the first batch of 150 SKOMOBOs. These were installed into classrooms throughout the South Island. He has now secured funding from MBIE (the Ministry of Business, Innovation & Employment) to develop an enhanced version of SKOMOBO that will feed live data to a dashboard, enabling schools to see in real-time the environmental conditions inside their spaces. A referee described Mr Boulic as “possessing boundless energy, determination & a huge intellect. He has the courage to challenge the status quo and to have big goals, matched with a passion to continuously strive for a better way to do things. SKOMOBO is the result of such talent & focus”.

The Site Safe safety award was won by Safety Wingman Team. The Wingman Safety campaign had been established by Wellington International Airport Ltd for earlier construction projects on its site. The current Rydges Hotel project at the airport represented version 3 of the programme, which was developed with main contractor, Arrow International Ltd.

Wingman 3.0 is about everything that happens onsite, while promoting a positive worker engagement through all levels of site activities. It involves ongoing regular events, celebrations, awards, ‘rate a mate’, incentives for near-miss observations & learning opportunities, positive reinforcement, lots of collateral/posters, and a unique site induction video. The simple premise that a ‘safe site is a productive site’ has translated to quality & productivity gains, and a higher level of commitment & attitude exhibited by the site team. What was originally a safety campaign has become a site culture campaign. The judges could see the project team from Arrow had accepted the challenge set by the airport company and had created an inspiring & effective health & safety environment onsite.

The new Hays Construction interdisciplinary collaboration award, recognising exceptional examples of collaborative partnerships between consultants & contractor, was won by 12 Madden St, Auckland’s first purpose-built co-working space. It’s a 6-storey building comprised 9183m² of general office floor area & 3424m² of parking spread over 2 basement levels.

The client, Precinct Properties NZ Ltd, was very much an active project team member, driving the culture & challenging all project participants to think outside the box and provide innovative ideas across all project phases.

Beca, Holmes Consulting, Warren & Mahoney and RLB were engaged as the design team, with the Hawkins engagement based on a 2-stage tender (design bid & build) model, before the design completion. This allowed Hawkins to review the design with key sub-trades and provide alternative solutions & options for the design team to consider.

The judges said this project exhibited a multi-level degree of interdisciplinary collaboration that was led jointly by the client, design consultants & contractor: “That the identical team has been engaged by Precinct Properties for their next new building project at Wynyard Quarter underlines the judges’ view that 21 Madden St was an outstanding example of project collaboration.”

Raji Rai, a senior project manager at The Building Intelligence Group, won the Metro Performance Glass consultants award. New for 2018, this award recognises high performance of design consultants (architects, engineers, quantity surveyors or project managers) who have contributed to the design, documentation & delivery stages of a successful project.

Telecommunications company Spark NZ Ltd had undertaken an asbestos identification & management survey across its property portfolio. An outcome was that Spark’s AT Building in the Auckland cbd was identified as having asbestos contamination that needed removal. The Building Intelligence Group was engaged as project manager, with Raji Rai as its representative.

The judges said: “The biggest challenge was to ensure that the facility was operational during the asbestos removal works. There was a considerable time pressure overlay to the project also, as Spark had moved the AT Building’s 400 occupants into temporary accommodation for the duration of the asbestos removal project. The project was successfully completed without any single outage to Spark’s services, and the asbestos breaches reported were able to be contained within the active zones.

“The judges were impressed by Raji’s total commitment to attaining a result on what was a complex project both technically & logistically. As the client said, ‘The scale & risk of the asbestos remediation works within a working voice & data exchange was off the scale.’”

Attribution: Institute release.

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Innovative construction the target in 2 Institute of Building awards

Published 27 August 2018
The NZ Institute of Building’s charitable trust made 2 scholarship awards at the weekend, each worth $10,000, to 2 Master of Architecture (Professional) students from the School of Architecture at Victoria University of Wellington, Emma Fell & Mikayla Heesterman.

The scholarships, first offered last year, were established to recognise, encourage & financially support recipients from a trade, technical or professional role, who are proposing to pursue a project linked to building through research, practice or professional development.

Emma Fell.

Trust chair Gina Jones said: “These awards were established to encourage aspirational thinking that has the potential to advance the design, construction or management of buildings in New Zealand, and thereby enhance the quality of our built environment.”

3 former institute presidents were on the judging panel – Gina Jones, Bill Porteous & John Jonassen. They reviewed 11 entries.

Emma Fell is researching the design & development of a prefabricated building envelope system for mass timber construction using cross-laminated timber (CLT). The system uses specially designed proprietary joints specific to different types of cladding. Ms Fell proposes to use her award to fund a fullscale prototype using CLT and the building elements necessary to assess the viability of the system. The resultant research has the capability to revolutionise prefabrication in New Zealand.

She said it offered the possibility of offsite fabrication, followed by delivery to the site and quick erection without scaffolding. The optimised design & process could lead to an immense reduction of overall construction time & costs.

Mikayla Heesterman.

Ms Heesterman has been inspired by traditional Japanese timber architecture, which used intricately carved timber-only connections. The judges said such connections were structurally successful & aesthetically beautiful but, as Ms Heesterman noted in her application, their complexity makes them time-consuming & difficult to make.

By using pioneering industrial robotic arm technology, she proposes that it will be possible to fabricate more complex designs than is usually possible with existing woodworking machinery. Traditional timber joints are used as a starting point for the development of new intricate joints that are suitable for modern fabrication & complex largescale timber architecture.

Her study is focused on traditional timber-only (no metal) connections to create new sustainable solutions that can only be produced by robotic milling. The ultimate aim is to produce an accessible database of new construction designs, with relevant structural information for different applications, that can be easily selected, personalised & produced.

Attribution: Institute release.

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Greenland & Golden Horse start 1400-apartment job on old Goodman industrial site

Chinese state-owned developer Greenland Group & Golden Horse Group of Hong Kong turned the first sod on Thursday for a 6.9ha 1400-apartment joint-venture project at Erskineville in Sydney’s inner-west, on a former industrial site which Goodman Group sold to Golden Horse in 2014.

Construction partner for stage 1 of the Park Sydney development is local family-owned builder Richard Crookes Constructions Pty Ltd, which has worked on several Greenland projects.

Image above: Park Sydney masterplan, highlighting amenities.

The masterplanned residential community will be developed in 5 stages and will ultimately feature 9 development blocks ranging in height from 2-8 storeys.

Park Sydney, 4km from Sydney’s cbd, will have a 7446m² public park, a supermarket & specialty shops, a fresh food precinct, eat street, medical centre & childcare centre.

Greenland Australia managing director Sherwood Luo said: “Together with Golden Horse Australia, we’ve been planning Park Sydney since 2016, so it’s particularly exciting to see major projects of this scale starting to take shape and watching how they transform the local area.

“We are converting this large former industrial precinct into an engaging & inclusive residential community that will ultimately become home to some 3000 residents.”

The value to Goodman of its exit

Golden Horse Group expanded into Australia in 2013 and bought the former industrial site in Erskineville from Goodman Group the next year. For Goodman (owner of NZX-listed Goodman Property Trust’s management company & cornerstone investor in the trust), that deal was among many as the group sold $A1.9 billion of mostly industrial assets in a year, and reinvested the lot to generate higher development returns.

Builder with long list of staff support programmes

On a different tack, the builder on this project has a lot to say about how it treats its staff – an eye-opener at a time the New Zealand construction sector has been grumbling about contract arrangements, and this government (like the last one) is talking about increasing training for & numbers in the construction industry.

Richard Crookes Constructions says on its careers page: “RCC believes the success of every project depends on the ability of their personnel and the synergy of the project teams… RCC’s business is based on maintaining long-term relationships with clients, partners & subcontractors.”

It also lists a number of staff-supporting views that I’m sure would be novelties if espoused in New Zealand:

  • We build a talent pipeline
  • We expect our staff to engage in the business and be part of its success, growth & evolution. In return we invest in their growth & development. We give people autonomy, support & the resources they need to perform at their best
  • We maintain a flat management structure with an open door policy and an honest & collaborative culture
  • Fitness passport gives individuals & families access to multiple facilities (gyms, swimming pools) which allows you to go as often as you like
  • Exercise incentives, health assessments, mindfit programme, access to trainers, $A100 annual rebate & annual flu vaccinations
  • RCC offers corporate rates with BUPA to all employees in an effort to encourage healthy lifestyles
  • Every employee receives one day off every 6 months – employees are encouraged to use the leave for engaging in health & wellbeing activities, spending time with family & friends or to relax
  • Each employee has the ability to purchase an additional 2 weeks of annual leave/year
  • Maternity & paternity leave is offered when members of the RCC family start or expand their own families
  • We would like your salary to work as hard as possible; for this reason, we offer salary packaging options such as novated leases (a lease arrangement, usually for a vehicle, where the employer takes on the obligations of the lessee to the financier, which ceases if the employee leaves the job)
  • Our staff can access a range of discounts from partnering retailers
  • RCC has a financial advisor in-house who is available to meet with staff one on one
  • We believe in & support females at RCC; one of the programme offerings is our women’s leadership lunch & learns
  • We offer an array of learning & development for our employees through coaching sessions, formal mentoring programmes, external training, role-specific technical training & leadership development programmes across all levels.

Links:
Park Sydney
Greenland Australia
Golden Horse Australia
Richard Crookes Constructions

Earlier story:
17 August 2015: Urban renewal lifts Goodman Group

Attribution: Joint venture release, Greenland, Golden Horse & Richard Crookes websites.

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MBIE opens consultation on acceptable solutions

The Ministry of Business, Innovation & Employment (MBIE) opened consultation on Wednesday on proposals to amend a number of acceptable solutions & verification methods, and to revoke the simple house acceptable solution SH/AS1. The consultation period closes on Friday 21 September.

MBIE said in a release the changes were intended to update the documents to reflect the latest knowledge & current building practices, and also make editorial changes for clarity.

Amendments are proposed to the following documents:

  • Clause B1 Structure: B1/VM1
  • Clause B2 Durability: B2/AS1
  • Clause E2 External Moisture: E2/VM1, E2/AS1
  • Clause G12 Water Supplies: G12/VM1, G12/AS1, G12/AS2
  • Clause G13 Foul Water: G13/AS1, G13/VM2, G13/AS2, G13/AS3

Revoking Simple House:

On revoking the simple house acceptable solution SH/AS1, MBIE said: “SH/AS1 is now 8 years old and is no longer fit for purpose. It has not been updated in a number of years, meaning current knowledge & practices are not reflected, and it is inconsistent with other acceptable solutions.

“Anecdotal evidence is that few architects & designers refer to SH/AS1 because of its limitations on floor & roof shapes. SH/AS1 does not contain any information that is not available elsewhere in acceptable solutions or New Zealand Standards.

Link:
Full proposals & consultation MBIE corporate website

Attribution: MBIE release.

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More moderate but sustained construction growth forecast, but new records seen for housing

The National Construction Pipeline Report 2018, out on Monday, forecasts a continuing rise instead of a tailing off in housing construction, a less optimistic future for non-residential & flatlining for infrastructure.

The report provides a projection of national building & construction activity for the next 6 years, ending 31 December 2023. It includes national and regional breakdowns of actual and forecast residential building, non–residential building and infrastructure activity. The report is based on building & construction forecasting by the Building Research Association (BRANZ) & Pacifecon NZ Ltd data on researched non-residential building & infrastructure intentions.

The 5 key findings in the report:

  1. Sustained growth is forecast for building & construction nationally
  2. National dwelling consents expected to exceed historic highs with 43,000 in 2023
  3. Multi-unit dwellings overtook detached house consents in Auckland in 2017
  4. Non-residential building growth expected for Auckland, Waikato & the Bay of Plenty
  5. Wellington experienced the strongest total construction growth in 2017.

MBIE said all previous reports had been adjusted to 2017 dollars for comparison.

Switch to more sustained growth

The report suggests growth will moderate, but be sustained: “For the first time since the report was initiated in 2013, a peak in total construction value is not expected within the forecast period. Instead a more moderate sustained growth is forecast for the next 6 years. The 2017 report forecast a peak in total construction value of $42 billion in 2020. This year’s forecast is for activity to remain at current elevated levels until the end of 2020, with growth expected from 2021 to over $41 billion in 2023. The forecast of sustained growth reflects strong researched project intentions nationally.”

How good was last year’s forecast?

The ministry asks in this year’s report how well did it do with the 2017 forecast. I noted when that report was released last August that it acknowledged an optimism bias in forecasting, then didn’t seem to take it into account.

MBIE bears that out: “The revised total construction forecast for the period 2017-23 is for moderate & sustained growth. The higher & earlier construction peak, which was forecast for 2020 in last year’s report, is expected to give way to long-term growth. This year’s forecast is lower than previously forecast.

“Actual national growth decreased by 0.3% in 2017, whereas the 2017 report had expected 10% growth. All 3 construction types (residential buildings, non-residential buildings & infrastructure construction) grew less than expected. Long-term growth is now forecast showing continued growth to 2023. This is unique compared with all previous reports, which have all forecast a peak at some point in their 6-year views.”

Housing forecast – true if KiwiBuild succeeds

While, in the 2018 report, the ministry acknowledges over-optimism last year, the forecast for housing consents is even more optimistic. Whereas the 2017 report showed consents peaking at about 34,000 in 2019 then tailing off, the 2018 report shows consents continuing the almost straightline rise since the market bottomed below 14,000 in 2011 (13,269 in the 12 months to July 2011).

“Over the next 6 years the number of dwelling units consented is forecast to increase by 39% to a forecast high of 43,000 dwelling units in 2023. Dwelling unit consents are expected to go past the 2004 peak (31,423 dwellings) in 2018 and grow year-on-year throughout the forecast period. This is considerably higher & longer-term dwelling growth than was forecast in the 2017 report.”

The latest consent figures, released by Stats NZ yesterday, show the pipeline report is correct on the first part of this forecast: consents for the 12 months to June totalled 32,860.

The dwelling unit forecasts are based on Stats NZ’s December 2017 household formation data, which provides estimates of the number of new dwellings required derived from population estimates. This information provides estimates of the number of new dwellings required to meet both expected population growth and to remedy already existing housing shortages.

One reason for the greater optimism: “KiwiBuild is expected to provide greater certainty of the forward pipeline of construction work and allow the sector greater ability to manage constraints and scale up to provide year-on-year increases in dwelling numbers into the future.”

Non-residential

On non-residential, this year’s report forecasts a lower peak in 2019, the same time as the peak forecast previously. The 2017 report forecast 12% non-residential building growth for 2017 nationally, but actual recorded growth was a fall of 3%.

Infrastructure to flatline?

The 2018 report’s forecast for infrastructure activity nationally is far lower, almost flatlining for 6 years at about $7 billion/year, whereas the 2017 report had infrastructure spending rising from $8 billion at the start of this year to $10 billion in 2023.

The new report says: “Last year’s report expected 6% infrastructure growth, where actual recorded activity was a 3% decrease. National infrastructure values are historically more consistent year-on-year than residential or non-residential building activity values.”

Smoothing out the optimism bias

Pacifecon recognises the optimism bias inherent in development intentions, and has been steadily reducing the size of project it individually scrutinises more closely. For the first report in 2013 projects over $100 million were individually scrutinised. This year & last year, projects over $50 million were scrutinised.

The report explains that all intentions in building & construction come with some level of overconfidence, but many projects may lag behind their original timelines or are occasionally cancelled. “This optimism bias of non-residential building & infrastructure construction intentions in the Pacifecon dataset can be seen in the raw (un-‘smoothed’) known intentions data. This shows in a higher than expected number of projects over the next few years, and a lower than expected number of projects over the longer term.”

Links:
MBIE, Construction pipeline reports
MBIE, 2018 construction pipeline report

Earlier stories:
9 August 2017: Construction pipeline report continues to show high optimism bias
27 July 2016: $200 billion construction pipeline forecast for next 6 years

Attribution: MBIE release, pipeline report.

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Home consents up 8% for year, non-residential forging ahead

Consents for new homes nationally in June dropped 18% from a 14-year spike in May, but were up 9.1% compared to June last year.

The total value of all consents issued in the year to June rose 10.7% to $21.5 billion.

Home consents for the June year were 7.9% ahead of the previous year at 32,860, and lifted the rolling annual tally by 132 from May.

The value of all new residential consents, including additions & alterations, rose just over 11% for the month & the year, to $1.17 billion for the month and $12.8 billion for the year.

Standalone homes’ share of new consents fell 4 percentage points for the month to 62%, 5 points for the year to 64.4%.

The national consent numbers for new homes in June and the year to June, compared to June last year, and the latest 12 months compared to the previous 12 months:

Total consents for new homes:  2792 (2560 in June 2017, 3407 in May 2018), up 9.1%; 32,860 (30,453), up 7.9%
Total values for new homes, plus alterations & additions: $1.17 billion ($1.05 billion), up 11.2%; $14.2 billion ($12.8 billion), up 11.1%
Standalone homes:  1730 (1691), up 2.3%; 21,176 (21,090), up 0.4%
Apartments: 323 (268), up 20.5%; 3922 (2913), up 34.6%
Retirement village units: 144 (222), down 35.1%; 2002 (1651), up 21.3%
Suburban townhouses & flats: 595 (379), up 57%; 5760 (4799), up 20%
Standalone share of consents:  62% for the month (66%); 64.4% for the year (69.3%).

In Auckland – Manukau up 150%, Howick up 116%

The spread of new consents around the Auckland region has varied considerably over the last 12 months – down at the rural extremities, big jumps in parts of South Auckland, smaller rises in parts of the isthmus.

A quick count of the shifts: Rodney down 20%; in the city centre & islands ward of Waitemata & Gulf up 35%; down 3% in the ward with the biggest volume, Albany; up 56% in Orakei; up 67% in Maungakiekie-Tamaki; up 116% in Howick; up 150% in Manukau; up 34% in Manurewa & Papakura; down 25% in Franklin.

Auckland residential consents, for June & year to June compared to June last year and the previous 12 months:

Region: 1001 (906 in June 2017, 1530 in May 2018), up 10.5% from last June; 12,369 (10,364), up 19.3%
Rodney: 67 (105), 795 (992)
Albany: 210 (247), 2506 (2585)
North Shore: 24 (45), 721 (496)
Waitakere: 79 (45), 662 (606)
Waitemata & Gulf: 15 (61), 1408 (1040)
Whau: 83 (91), 434 (378)
Albert-Eden-Roskill: 107 (160), 822 (841)
Orakei: 21 (12), 386 (248)
Maungakiekie-Tamaki: 70 (20), 773 (464)
Howick: 98 (32), 847 (393)
Manukau: 68 (23), 1002 (401)
Manurewa-Papakura: 85 (19), 1307 (973)
Franklin: 74 (46), 706 (947)

The non-residential sectors, and the total

The total value of all consents issued in the year to June was $21.5 billion, up 10.7% from $19.4 billion in the previous 12 months.

After 2 $2 billion months this year (March & May), total consents were comparatively low at $1.74 billion, but that was 13.1% above June last year.

Consents for non-residential buildings were up 17.5% for the month at $530 million ($451 million), and up 10.3% over 12 months to $6.9 billion ($6.2 billion).

In non-residential sectors, the value of consents for hotels, motels & other short-term accommodation has slipped 33% in the last 12 months to $328 million after rising by 216% to $490 million in the previous 12 months. The consent value in that sector in June rose 103% to $50 million.

Consents for shops, restaurants & bars fell 23% in the year to June 2017, from $904 million to $698 million, but have regained most of that ground in the latest 12 months, rising 43% to $996 million.

Industrial building consents rose 43% in the year to June 2017 to $577 million, and another 37% in the last 12 months to $792 million.

The 2 biggest non-residential categories are education and a combination of offices, administration & public transport. Consents for education buildings have topped $1 billion/year for 3 years after jumping from $776 million to $1.24 billion in 2016. The sector slipped to $1.1 billion last year but has picked up to $1.16 billion in the last 12 months, a 5.2% rise.

Consents in the office sector have exceeded $1 billion/year for 5 years after rising from $797 million to $1.035 billion in 2014. They reached $1.25 billion in 2017 but have fallen 13.1% in the last 12 months to $1.09 billion.

Attribution: Stats NZ tables & release.

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15-year high for Auckland home consents

Consents for new homes in Auckland hit a 15-year high of 1530 in May. It was the 6th time in 12 months that consents had topped 1000.

In October 2002, 1945 consents for new homes were issued in Auckland, including 1206 apartments.

The 3407 consents for new homes issued nationally in May were the highest number since the 3447 in June 2004.

Nationally, consents were up 6.5% over the last 12 months to 32,628. In Auckland, the 12,274 consents for the year were up 18%.

Standalone houses remained the biggest contributor, but with a declining market share.

Standalones represented 77.6% of new consents in May 2016, falling to 73% last May and to 63.6% this May. On an annual basis, standalones fell from 72.1% in the year to May 2016 to 69.4% in 2017 and 64.8% in the latest 12 months.

The national consent numbers for May and the year to May, compared to May last year, and the latest 12 months compared to the previous 12 months:

Total consents for new homes: 3407 (2794), 32,628 (30,645)
Total values for new homes: $1.383 billion ($1.229 billion); $14.085 billion ($12.81  billion)
Standalone homes: 2167 (2039); 21,137 (21,262)
Apartments: 454 (123); 3867 (2881)
Retirement village units: 255 (137); 2080 (1718)
Suburban townhouses & flats: 531 (495); 5544 (4784)
Standalone share of consents:  63.6% for the month (73%); 64.8% (69.4%).

Auckland residential consents, for May & year to May compared to May last year and the previous 12 months:

Region: 1530 (885), 12,274 (10,379)
Rodney: 82 (159), 833 (965)
Albany: 283 (208), 2543 (2549)
North Shore: 37 (42), 742 (484)
Waitakere:  73 (53), 628 (626)
Waitemata & Gulf: 318 (9), 1454 (1093)
Whau: 54 (13), 442 (339)
Albert-Eden-Roskill: 147 (94), 875(731)
Orakei: 92 (5), 377 (280)
Maungakiekie-Tamaki: 85 (83), 723 (468)
Howick: 78 (33), 781 (401)
Manukau: 60 (33), 957(397)
Manurewa-Papakura: 145 (65), 1241 (1065)
Franklin: 76 (88), 678 (944)

Total construction

Over all sectors, the value of all consents has been rising by $2 billion/year since New Zealand edged out of the global financial crisis in 2013.

In the 12 months to May 2013, consents for all construction were worth $11.2 billion. In the latest 12 months they were worth $21.3 billion, up 8% from $19.7 billion in the year to May 2017.

Consents for non-residential construction rose 8.7% in May to $657 million ($605 million), and 4.2% for the year to $6.8 billion ($6.5 billion).

Attribution: Statistics NZ.

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Property Council award a tribute to Maurice Clark’s reinvigoration skills

The Property Council’s supreme award last night, to the former Dominion Post building on Boulcott St in Wellington, now known as Waikoukou and the headquarters of Transpower NZ Ltd (pictured), is a tribute to Maurice Clark for his determination to salvage tired buildings and light them up for new users.

He also salvages old names. According to a Dominion Post story in 2015, Boulcott St was once a stream running down from bushclad hills, and the place it met Manners & Willis Sts was called Wai-koukou, for the pool where forest birds bathed.

I recall the Evening Post building (in 1969, well before the 2 Wellington newspapers merged) as a chaotic joining of structures, where reporters & sub-editors were separated by a chasm and a back staircase somehow dropped you at the door of the Britannia. And Boulcott St was the first place I drove a company car, a Fiat bubble car, managing to terrorise motorists & pedestrians on all sides before making it to the Holeproof factory at Shannon & back. But back to the awards:

Maurice Clark.

Mr Clark was developer through Cheops Holdings Ltd. [Cheops, the Great Pyramid of Giza, is the oldest of the 7 wonders of the ancient world. It’s notable as the only one of those 7 to remain largely intact.]

He bought McKee-Fehl Constructors Ltd in 1987, remains its owner & managing director and has focused its work in recent years on restoration, especially of quake-damaged structures, including Transpower’s former premises (originally Shell House) on The Terrace.

The construction company has a long series of building salvages to its name. Earlier projects include the 1904 Victoria University Hunter Building, the 1876 Law School (Old Government Building) and the 1908 Public Trust Building, now occupied by the Ministry for Culture & Heritage.

Mr Clark’s also had his engineering skills tested on the strengthening for the Victoria University Rankine Brown Building, Museum of Wellington City & Sea, and structural testing before redevelopment of the former Defence building at 15 Stout St, now occupied by the Ministry of Business, Innovation & Employment.

Mr Clark, 74, was made an officer of the NZ Order of Merit in 2016 for his services to heritage preservation & the construction industry.

Multiple awards for Waikoukou

On Waikoukou’s way to winning the supreme award at the Property Council-Rider Levett Bucknall industry awards, it was also best in the commercial office category and won a merit award for green building.

The awards judges said the Waikoukou project team had rejuvenated what was a largely vacant & obsolete collection of buildings, refurbishing the existing and adding a new office structure on top. They also added a hospitality courtyard & laneway, Press Hall, linking Boulcott St through to Willis St.

The judges commented: “Not only does the building’s superior structural resilience ensure Transpower uninterrupted operations in the event of an earthquake, the project team have transformed the property into a modern, seismically upgraded office environment.

“A ground-to-roof central atrium with connecting bridges between the north & south buildings and generous internal stairwell creates a unique social environment.

“The judges believe this project successfully integrates multiple challenges, delivering a thoughtful design, quality execution, and anchored with a long-term lease to a recognised tenant, resulting in a high quality investment asset.”

Supreme winner:
Waikoukou, 22 Boulcott St, Wellington, developer Cheops Holdings Ltd, along with project partners McKee-Fehl Constructors Ltd (Maurice Clark is sole director of both Cheops & McKee-Fehl), Architecture + Ltd, Jasmax Ltd, BlackYARD Engineering Ltd, Beca Ltd and tenant, Transpower NZ Ltd

Civic & arts, sponsor Warren & Mahoney:

Excellence & best in category: Ellen Melville Centre & Freyberg Place, Auckland
Excellence: Justice & Emergency Services Precinct, Christchurch; Matuku Takotako, Sumner Centre, Christchurch
Merit: Dunedin law courts, Dunedin; Manukau bus station, Manukau; Objectspace art gallery, Grey Lynn; David O McKay Stake & Cultural Events Centre, Hamilton; Salvation Army Christchurch City, Christchurch

Commercial office, sponsor RCP:

Excellence & best in category:
Waikoukou, 22 Boulcott St, Wellington
Excellence:
12 Madden St, Wynyard Quarter
Genesis Energy, Hamilton
Ministry for Primary Industries, Auckland
Pita Te Hori Centre (King Edward Barracks), Christchurch
Merit:
AA Insurance, Auckland
Alpine Energy office building, Timaru
Maori Television, East Tamaki
QBE Centre, 125 Queen St

Education, sponsor GIB:

Excellence & best in category:
King’s School centennial building, Remuera
Excellence:
Otago Business School, Dunedin
Te Auaha NZ Institute of Creativity (Cuba Dixon redevelopment), Wellington
Wakatipu High School, Queenstown
Merit:
Rangiora High School – Rakahuri building, Christchurch Ara Kahukura, Christchurch
Unitec construction, engineering & trades building (Mataaho), Mt Albert
Unitec Hub (Te Puna), Mt Albert
Auckland University Science Centre, Auckland

Green building, sponsor Resene:

Excellence & best in category:
Ara Kahukura, Christchurch
Excellence:
Pita Te Hori/King Edward Barracks, Christchurch
Te Pa Tauira – Otago Polytechnic student village, Dunedin
Merit:
Waikoukou, 22 Boulcott St, Wellington
Goodman fitout, KPMG Centre, VXV precinct, Wynyard Quarter

Health & medical, sponsor Fagerhult:

Merit:
Whenua Pupuke – Waitemata Clinical Skills Centre, North Shore Hospital, Takapuna

Heritage & adaptive reuses, sponsor Hawkins:

Excellence & best in category:
Dunedin law courts, Dunedin
Excellence:
Melanesian Mission, Auckland
Merit:
94-96 Queen St, Auckland
Air NZ airport campus, Auckland Airport
Bishop Selwyn Chapel & St Mary’s Church, Parnell
Christ’s College kitchen tower restoration, Christchurch
Mona Vale homestead, Christchurch
Sign of the Kiwi, Christchurch

Industrial, sponsor Yardi:

Excellence & best in category:
Röhlig Logistics, Mangere
Excellence:
Fonterra Co-operative Group, 109 Fanshawe St, Auckland
Merit:
Ministry for Primary Industries, Auckland
Potter Interior Systems Ltd, The Gate Industry Park, Penrose

Multi-unit residential, sponsor Arrow International:
Excellence & best in category:
Sale Street Apartments, 70 Sale St, Auckland
Excellence:
Hereford Residences, Freemans Bay
North West Quarter, Kensington Park, Orewa
Merit:
Centro, Sugartree, 27 Union St, Auckland
Millwater Central Terraces, Millwater, Hibiscus Coast
Te Pa Tauira – Otago Polytechnic student village, Dunedin
The Foundries, Freemans

Retail, sponsor RCG:

Excellence & best in category:
The Hub Hornby, Christchurch
Excellence:
Huami Restaurant – SkyCity Auckland Ltd, Auckland

Tourism & leisure, sponsor Holmes Consulting:

Excellence & best in category:
Ramada Albany, Albany
Excellence:
Auckland International Airport pier B extension project, Auckland Airport
Merit:
Bug Lab, Auckland Zoo, Western Springs

Urban land development, sponsor Natural Habitats:

Excellence & best in category:
Beaches – Coast Papamoa subdivision, Papamoa
Merit:
Jennings St-Jersey Avenue redevelopment by Housing NZ Corp, Mt Albert
Richmond subdivision (stage 1), Mt Wellington

Links:
Transpower, 11 June 2015: Maurice Clark to develop Wellington building for Transpower
McKee Fehl, Press Hall – a new landmark
McKee Fehl projects
Dominion Post, 20 July 2015: Many Maori names for Wellington landmarks lost – 150 years of news

Attribution: Property Council release, McKee Fehl, Dominion Post, Wikipedia.

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Commission opens investigation into Fulton Hogan’s Stevenson acquisition

The Commerce Commission has opened an investigation into Fulton Hogan Ltd’s proposed acquisition of Stevenson Group Ltd’s construction materials business.

The commission said yesterday it would consider whether the acquisition would be likely to result in a substantial lessening of competition in any relevant market in breach of section 47 of the Commerce Act. The acquisition is due to be completed by 31 July, but the parties haven’t applied for clearance for it.

Fulton Hogan is one of New Zealand’s largest roading & infrastructure construction companies. The commission said it would focus initially on the potential competitive effects of the proposed acquisition on quarry markets in Auckland & North Waikato.

It would also consider whether any competitive effects arise from Fulton Hogan’s proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant & equipment.

The commission seeks input to its investigation by Friday 29 June.

The sale would leave Stevenson’s with its property development & mining operations. Its biggest property interest is the 360ha Drury South industrial park it’s begun developing.

Related stories:
7 April 2017: Kiwi Property plans new town centre next to Stevenson’s Drury development
30 August 2013: Drury South industrial area plan change & MUL extension approved

Attribution: Commission release.

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