Building optimism in 2021
An award-winning Jennian Home in Masterton. PHOTO/FILE
Residential housing remains strong
Leaders of the Wairarapa construction industry disagree with forecasts of a nationwide decline in construction activity.
The National Construction Pipeline Report, commissioned by the Ministry of Business, Innovation and Employment [MBIE], projected that New Zealand would see a decrease in construction activity through to 2023 as a result of covid-19.
The report predicted that residential activity – the largest contributor of national construction – would be hit hardest.
According to the report, the value of residential construction would fall 43 per cent from $23.7 billion in 2019 to $13.4 billion in 2023, as banks tightened their lending requirements.
STUFF
The new owner could turn the replica ranch in New Mexico into a full-time filmset or their very own Westworld.
The number of new homes expected to be built over the next six years in Auckland is down 23,000 from earlier forecasts. The National Construction Pipeline Report 2020 released on Monday predicts 73,000 homes will be consented from 2020 to 2025, while last year s report expected 96,000. An economist says a lack of international students and more people working from home is scaring away developers, leading to the trend.
Abigail Dougherty/Stuff
Forecasts for home building in Auckland are looking bleak, with a 23,000 drop in the latest MBIE report.
Monday, 21 December 2020, 4:49 pm
The National
Construction Pipeline Report, released today, shows that
the Construction Sector Accord will need to play a vital
role in supporting our COVID-19 recovery.
“The
Construction Sector Accord principles are now more important
than ever,” says Dean Kimpton, Construction Sector Accord
Transformation Director.
“We need to build trusting
relationships, be bold, value our people and act with
collective responsibility.”
Dean says, “the report
released today is based on the sector’s own forecasts and
indicates national construction value could take a 31 per
cent hit by 2023.
“However, the forecasts in the
report are surrounded by significant uncertainty as the full
Construction Industry Council chair Graham Burke told
Morning Report the forecast was counter-intuitive because people on the ground were saying they have never been this busy. Builders are saying they are booked up for all of next year and some into the following year.
He said for building to come to a halt would take something significant happening. There s plenty the government can do to make sure that consumer confidence remains. The government are building more houses themselves than we ve seen in decades; that s a small part of the industry, we do need private houses to continue.
Burke said there was a shortage of materials from overseas, which are expected to get tighter over the next quarter.
Press Release – Ministry of Business Innovation and Employment
The National Construction Pipeline Report 2020 released today forecasts a short-term decline in construction activity as a result of the COVID-19 pandemic.
The Report commissioned by MBIE provides a projection of national building and construction activity for the next six years, through to 31 December 2025, based on current settings. It includes national and regional breakdowns of actual and forecast residential building, non-residential building and infrastructure activity.
“While there is a lot of uncertainty as a result of the pandemic, the Report expects a decline in the total value of construction through to 2023, before it starts to recover,” says John Sneyd, General Manager Building System Performance, Ministry of Business, Innovation and Employment.