Construction activity in New Zealand is picking up pace after suffering a slump in recent years. According to a property consultancy, work in the private sector has been picking up and is on the path to robust recovery.
Consultancy firm Rider Levett Bucknall stated in its 2015 first quarter report on the construction and property sector that activity in this sector has been so healthy that it has outshined its pre-recession peak levels.
The most resilient sectors during these years in between, according to the report, have been education-related building projects and the construction sector. The report states that the positive growth trends in these sectors have in effect acted as a buffer for the entire industry during the recession period.
Based on the latest construction project consents and approvals, indications about improvements in the construction activity are already being observed, said the report. Going forward, in 2015, there will be a greater level of construction activity in New Zealand’s construction sector.
The total number of non-residential construction projects has been on a rise, mainly on account of re-building activities that were carried out following an earthquake in the Canterbury area. In other areas such as Auckland, demand for property has been growing consistently and vacant spaces are now being developed for residential or commercial projects, leading to an increased number of construction projects.
In New Zealand, specifically, the demand for industrial spaces is going up, and is leading to robust growth in the industrial property construction segment. There are a number of factors driving the logistics market as well – increased imports in the backdrop of a cut down in domestic manufacturing is the key factor among this.
The report further states that construction activity in the farm building sector might not be as healthy because revenues from dairy activities have been on a downslide, and this has restricted farmers’ ability to expend money.