Value of construction remains high, keeps building industry strong

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New Zealand’s construction industry is in good health, according to the Registered Master Builders Federation following Statistics New Zealand’s release of building consent statistics for May. 

The value of consents issued for all building in May 2006 was $1.059 billion, $186 million more than May 2005, with residential and non-residential buildings recording their highest values for a May month. Registered Master Builders Federation chief executive Pieter Burghout says the May statistics show levels of construction activity remain strong, reflecting a “steady as you go” trend. 

“While the number of consents are dropping slowly, the actual value of construction spend remains high. “This shows the quality end of the residential market is staying robust, and the commercial market spend is strong, which is positive for New Zealand’s construction industry,” 

Mr Burghout says. The Statistics New Zealand figures show that despite the high May 2006 value, the trend of the value of residential buildings has flattened during recent months, which is in line with predictions made by the Registered Master Builders Federation in November 2005. 

“We expect a softening to continue over the next two or three years, but certainly no slump. This is good for the sector, having come off the back of five years of record work volumes. “We can now consolidate some of the gains the industry has made over recent years,” Mr Burghout says.