4 Jun 2015

First quarter increase for building work

4:06 pm on 4 June 2015

Construction activity has risen, with official figures showing the value of building work put in place increased by 10 percent in the first three months of the year, compared with the same quarter last year.

Part of a housing development in the Tamaki area in Auckland.

Part of a housing development in the Tamaki area in Auckland. Photo: RNZ / Kim Baker Wilson

The increase took the value of the building work to $4 billion, with Auckland and Canterbury accounting for 60 percent of activity.

When price changes and seasonal variations are removed, residential building activity jumped 2.6 percent, while non-residential fell 1.2 percent.

Westpac senior economist Satish Ranchhod said activity in Canterbury was changing, with the rebuilding of homes well advanced and consents starting to tail off.

"However, non-residential building is starting to ramp up. We've seen it in infrastructure but some of the major commercial developments are coming along now."

Mr Ranchhod said demand in Auckland remained robust.

"That's contributing to pretty solid investment in commercial assets, and of course, there's very strong demand for housing."

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