It's getting cheaper to build a new house

New Zealanders are spending less money on new houses, pushing the value of residential building work down 6.5 per cent in the June quarter to its lowest level in nearly eight years.

But the good news is that the cost of building a new house is also falling.

Statistics NZ data shows the value of house-building work is lower than the value of non-residential building work for the first time since it began gathering figures in 1989.

ASB economist Jane Turner said residential construction activity had fallen 36 per cent from its peak in September 2007, "and is now likely to be close to its trough".

"The volume of construction activity declined for the sixth consecutive quarter, falling 4.5 per cent and down 24 per cent since December 2007.

"The weakness was led by a 6.5 per cent decline in residential construction activity, although the drop was not quite as weak as expected given the extent of decline in consent issuance."

She is expecting some stabilisation in construction activity for the rest of this year.

To read the full NZ Herald story click here

Posted: 9 Sep 2009

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