March 2014
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Hillside harmony Page 13
Record construction boom tipped Chris Hutching Construction analyst BIS Shrapnel is predicting a construction boom bigger than anything seen before in New Zealand. The Canterbury rebuild and rebound in the Auckland housing sector is expected to help drive the building sector to a new peak by year ending March 2016. Remediation on leaky buildings will add to the momentum of the Auckland housing sector and Canterbury rebuild. BIS Shrapnel says building consent values are forecast to reach a new record high in 2016 to more than $10 billion. The level of activity would be more than historically high levels recorded over 2004-2008.
“We expect Auckland to experience strong growth in residential construction over most of the next five years,” says BIS Shrapnel senior project manager, Adeline Wong. The number of dwelling consents in Auckland is expected to increase from 4760 in 2012/13 to 6350 in 2013/14 and then to around 10,000 by 2017/18. Wong said building activity should be supported by a number of factors. “Relatively low levels of new residential building in recent years have left a housing shortage, although 2013 Census data indicates this may be less than previously thought,” said Wong. “Population growth including through immigration, firm economic growth, and relatively low – but rising – interest rates should also support the demand for residential dwellings. Over the next five years, BIS Shrapnel expects
the New Zealand housing market to be underpinned by reasonably strong net overseas immigration and mostly favourable economic growth. Dwelling activity over the outlook period will also be boosted by strong activity in alterations and additions to dwellings, and this will drive total dwelling authorisation value to record highs – resulting in an annual average of NZ$5.85 billion in constant terms. Christchurch reconstruction will provide a major boost to the non-residential building sector over the next five years. BIS Shrapnel also expects a pick-up in new building and refurbishment activity in the warehouse, factory and office building sectors in the North Island as leasing activity gathers pace in response to domestic and global economic growth over the next two to three years.
Annual average commercial and industrial building authorisations are forecast to reach an estimated NZ$2.39 billion in constant terms – or 14 percent higher than the level during the 2004-2008 boom years. “The non-residential building sector over the next five years may get an extra lift from potentially wider earthquake strengthening work in office buildings and schools in Wellington in particular,” says Wong. “However, there is also a downside risk to our forecasts in that the timing and scale of Christchurch reconstruction, and also seismic work in Wellington ,may not be as expected. “Some owners of quake-damaged and earthquake-risk properties may not commit to redevelopment in the short term, which would affect the overall outlook.”
Restoration funding plan welcomed A funding plan to restore three historic wooden viaducts in the Waitutu area is great news and recognition of important ground work to date, Venture Southland group manager enterprise and strategic projects Steve Canny said. Four giant timber viaducts built nearly a century ago in the rugged Waitutu Forest on the south coast of the Fiordland National Park are to be restored in an agreement between the Department of Conservation, the Southland District Council and the Port Craig Viaducts Trust. Canny, who is also the Trust’s secretary, said the partnership approach provided a sensible and logical way forward which would assist in efforts to leverage future funding. The funding deal will see costs will shared one third each between the Government, the council and community. Canny said Venture Southland had supported the work of the Port Craig Viaducts Trust which had persevered with a maintenance programme for the three viaducts throughout past two decades. Venture Southland had assisted the Trust in planning for the structural stability investigations which needed to be done on the viaducts ahead of repair and restoration work, he said. The current work required to repair and restore the viaducts is expected to cost $480,000, with each party committed to a $160,000 share for the next financial year of 2014/15.
INSIDE
In the spirit of Burt Munro...... Racers in action in the Wyndham Street Race held as part of the recent Burt Munro Challenge in Southland. Inspired by the motorcycle legend who broke two land speed world records on his home-built Indian motorcycle, the annual event continues to grow in profile, both nationally and internationally. More than 2000 motorcyclists attended the Challenge Rally with a record 530 competitors taking part in the racing events. Time Magazine rated the challenge “one of five festive events you don’t want to miss” for its exciting motorcycle racing, great entertainment and famous southern hospitality. As well as the social side, competitors can also participate in six disciplines over five days. See story page 24.
Honour for CECC chief - PAGE 2
Tait platform goes global - PAGE 3
Aviation helmet targets safety - PAGE 47
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