Construction tipped to rebuild by 2011

Building costs in the $12 billion construction sector are falling and the industry could be in for a recovery by 2011, says the Institute of Economic Research (NZIER).

In its property and construction forecast for consultants Rider Levett Bucknall, NZIER predicted house-building would continue to suffer low levels of activity, but falling costs would spark the broader building sector into a recovery in the next two years.

"Building cost escalation is forecast to continue easing until early 2010 with falling investment in non-residential buildings," the report said.

"It is forecast to rise gradually over 2010 and 2011 as economic growth accelerates, inflation rises and building investment resumes growing."

Statistics NZ this week released building consent figures showing commercial building reaching new highs.

Consents for work worth $530 million were approved by councils in April and $479 million in May.

These are the two highest figures since numbers were first compiled 44 years ago.

To read the full NZ Herald article click here

Posted: 3 Jul 2009

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