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The value of residential building work put in place rose at a slower pace in the third quarter of 2016, reflecting a more modest pace in Auckland and Canterbury.
The seasonally adjusted value of residential building work rose 4.3% in the three months ended September 30 compared with the second quarter, when the increase was 7.4%, Statistics NZ said. Building work volumes grew a seasonally adjusted 2.4% in the latest three-month period, down from 5.7% in the second quarter.
Analysts are looking for signs that measures to cool the Auckland housing market, where demand is spilling over into other regions, are working. Realtor Barfoot & Thompson this month said a decline in the average house price in the city last month may have signalled a "turning" point after seven years of increases, while the Reserve Bank said in its six-monthly financial stability report that house price inflation in Auckland had softened in recent months.
Total building volumes rose 1.4%, seasonally adjusted, in the third quarter, for an annual gain of 16%, while the value rose to 3.2% for an annual 22% increase. The value of building work in Auckland fell 0.2% and in Christchurch declined 1.5%.
"Building work put in place was slightly weaker than expected. However, we retain our third quarter GDP forecast of 0.8%," ASB Bank economist Jane Turner said. "Construction activity continues to grow robustly across New Zealand. With demand at extremely high levels, construction cost inflation continues to accelerate."
In actual terms, the value of residential building work rose 25% from the same quarter of 2015 to $3.3 billion, with Auckland work rising 32% to $1.2 billion and Canterbury gaining 1% to $646 million.
The actual value of non-residential building work rose 18% from a year earlier to $1.9 billion, led by a 33% gain to $612 million in Auckland and an 8.4% increase to $553 million in Canterbury.
(BusinessDesk)
Staff Reporter
Thu, 15 Dec 2016
Thu, 15 Dec 2016
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NZ value of residential building up 4.3% in third quarter
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