Canterbury's building surge may be levelling

MARTA STEEMAN
Last updated 05:00 30/07/2014

Relevant offers

Industries

Top of the south working group advocates seek focus in fishery preservation Quirky QT hotel brand coming to Queenstown More than 500 job losses as more Pumpkin Patch stores to close Rolls-Royce emerges tarnished, but lucky despite NZ$1.15b fine Donald Trump's appointment of Xero's Chris Liddell: Does NZ not care about the values of its business leaders? Investigations but no progress on Christchurch-Dunedin passenger train, KiwiRail says Spark joint-venture Southern Cross commits first $8m for new Pacific cable Baby City fined $39k for selling non-compliant cots NZ Bankers' Association warns about survey scam 23 complaints about child photography business shamed for Northland privacy breach

ASB's "Cantometer" rose again last month showing Canterbury's economy continued to be driven by its construction sector.

But the growth in the residential construction sector may be starting to flatten out a bit.

ASB chief economist Nick Tuffley said dwelling consents surged at the end of last year and beginning of this year and while the volume of dwelling consents in Canterbury was still higher in the past few months than in December the growth in dwelling consents was levelling out.

"There are emerging signs that dwelling consents issued in Canterbury may be starting to flatten."

Also while house prices in Christchurch continued to rise and were 7.3 per cent higher for the year to March, the pace of annual price growth was sitting just below the national level of about 8 per cent.

"Construction growth should continue to lead Canterbury economic activity over the next couple of years," Tuffley said.

In May 2014, the value of building consents was $336 million for Canterbury. That compares with $332m in April and $356m for Canterbury in March.

Of those, more than $1 billion of consents in three months, 35 per cent is non-residential.

The Cantometer is designed to summarise activity in Christchurch since the first earthquake in September 2010.

ASB has constructed an index which comprises five sub indices: construction, housing, employment, consumer and miscellaneous. Zero represents June 10 just before the quakes started.

The Cantometer index for July rose to 1.6 from 1.5 in June.

Within that the construction index stood at 4.2 while housing was 0.2 and employment 0.9.

Tuffley said the index for non-residential consent values was the highest in the two years the Cantometer had been running.

Tuffley said there was now almost as many dwelling consents issued in Canterbury as in Auckland when Auckland's population was three times Canterbury's.

Ad Feedback

- The Press

Special offers

Featured Promotions

Sponsored Content