Construction boom hits all-time high of $17.8b

Press Release – New Zealand Government

Hon Dr Nick Smith

Minister for Building and Housing


30 June 2016 Media Statement
Construction boom hits all-time high of $17.8b

Building consent data released today shows construction rates have hit an all-time high of $17.8 billion nationwide covering residential, commercial and infrastructure work, Building and Housing Minister Dr Nick Smith says.

“The construction sector is booming, with strong residential and commercial building activity across the country. The level of residential building activity in Auckland of $4.3 billion and nationwide of $11.4 billion is an all-time high in actual and inflation-adjusted terms.

“Today’s Statistics New Zealand data shows 28,387 homes were consented in the past year – the highest number in 11 years – and the 9434 consented in Auckland is continuing the strong growth over the past four years. The 732 for May is also the highest in 11 years.

“The growth in Auckland of 26 per cent in the past year in residential building, to a total of $4.3 billion, is about as fast as a sector can grow. This is treble the rate of $1.4 billion when National came to office. The growth has been particularly dramatic in the past few years, since the Government entered into a Housing Accord with Auckland Council.

“This continues the longest and strongest period of growth in residential construction in New Zealand history. We are on track for 85,000 new homes to be built nationwide in this term of Parliament, up from 60,000 last term. Auckland is heading for an all-time record of 36,000 homes – the largest in any Parliamentary term.

“This record investment in residential construction is welcome because supply is the most important answer to New Zealand’s housing challenges. The Government is working on further initiatives to ensure this growth is maintained.”

ENDS

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