Building activity rise tipped to continue

KASHKA TUNSTALL
Last updated 05:00 09/11/2012

Relevant offers

Industries

Big Oil eyes public pressure as banned crude export solution Rio Tinto reveals surprise 12pc export drop The dangers of deep sea oil drilling: NZ’s shocking safety record revealed Chinese banking giant breaches Reserve Bank rules BMW cuts production in China Dirt, arsenic and lead polluting air in industrial Christchurch High returns unsustainable after solid March quarter Tower strengthens its Canterbury rebuild reinsurance cover RB rate seen on hold with annual inflation just 0.1 per cent Sanford closes Christchurch plant for $2m

Fletcher Building expects New Zealand building activity to outpace that in Australia in the next year.

Fletcher Building general manager of investor and media relations Philip King said the listed company was forecasting that New Zealand residential and commercial consents would continue to modestly increase.

Australian residential activity, however, could experience more volatility and commercial construction was likely to remain subdued.

Infrastructure was the only construction area where Australian building was expected to remain steady, he said.

"What we're seeing is Australia has been slowing down over the last 15 months in their new housing consents and New Zealand has been picking at the same time.

"Australia has had quite strong housing over the last several years, where New Zealand reached all-time lows with its housing, exacerbated, of course, with what has happened in Canterbury."

But the sector has strengthened in New Zealand in the last financial year and the number of issued residential consents has risen 14 per cent, from 13,539 for the year to June last year, to 15,414 for the year to June this year, according to Statistics New Zealand.

In the same period, Australia had a 12 per cent fall, from 164,251 in the 12 months to June last year, to 145,057 this year, Australian Bureau of Statistics reports. Fairfax NZ

Ad Feedback

- The Dominion Post

Special offers

Featured Promotions

Sponsored Content