Published 9 December 2008
Building work put in place in the September quarter was down 8% from the September quarter of 2007, when there was an 8% rise from 2006.
The gains in the last 3 quarters of 2007 ended with an 11.4% rise for the December quarter, followed by a quieter March quarter (2.7% rise) and a 4.6% fall in June.
Despite the latest 2 successive falls, total building work completed in the September 2008 year remained just ahead of the previous year – by 0.1%, or $16 million, at $13.2 billion. Construction increased by more than 19% in the 2003 & 2004 September years, followed by a 10.4% gain in 2005 then 2 years of 4.7% & 4% gains.
In the residential sector, those boom years translated into new-home increases of 32.6% in 2003, 21% in 2004, collapsing to 3% in 2005, no change in 2006, an 11.2% gain in 2007 but a 5.5% fall this year.
After 3 strong quarters in 2007 (a 2.8% rise followed by gains of 19.5%, 18.4% & 12.3%), only the March quarter has been positive this year, with a 3.6% rise. In June, the construction of new homes was down by 11.5%, and in the September quarter it was down by 22.5% to $1.524 billion.
Commercial construction, where movements are much lumpier in all categories, was 6.3% ahead in the September 2008 year at $5.2 billion after falling 4.7% the previous year.
The strong non-residential years were 2004-05, when there were gains of 16.6% & 24.6%. After a 23.6% gain in the March 2006 quarter, the next 6 quarters were negative, rescued by a 10.4% gain in the December 2007 quarter.
2008 started negative with a 0.6% fall, followed by a 3.5% gain and an 11.2% increase in the September quarter to $1.4 billion of construction completed – the strongest non-residential quarter of the past 3 years.
· These figures are all actual, not the seasonally adjusted figures which Statistics NZ highlights.
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Attribution: Statistics NZ tables, story written by Bob Dey for the Bob Dey Property Report.