Construction in the tourism, office and industrial sectors looks set to push the value of non-residential building towards the $4 billion barrier next year, an analysis of the outlook for key infrastructure projects shows.
Monday, January 10th 2005, 8:37PM
by The Landlord
A round-up of the country's largest capital works projects shows the $3.6 billion spend-up on non-residential building in the June year is set to increase this year.
Fluctuating oil prices, the rising cost of building materials and wages and a labour shortage are the only dark clouds for the sector.
The New Zealand Institute of Economic Research prepared the Rider Hunt Forecast, examining trends in property and construction and projecting future workloads.
The $3.6 billion spent in the June year was a 12.9 per cent increase on the previous year and will rise again this year.
"This growth rate is approaching those witnessed in the mid-1990s' construction boom," the report said.
The report predicts Auckland and Wellington will see most of the work in the next few months with building activity levels of between 25 per cent and 35 per cent.
