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Commercial building on rise, despite recession

Dec 15th, 2008 | By | Category: Latest News, News

CONSTRUCTION of commercial building in New Zealand has risen 5.8% in the latest quarter, despite the economic outlook.

But the residential market faces a much bleaker outlook, reports Statistics NZ, with residential building falling 7.9%, the biggest drop in six years.

Richard Burrell, director of A Building Solution,  says commercial building projects take about three years to get started and building in that area is now slowing down.

“My feeling is there has been a 10% drop whether it is residential or commercial, but those statistics are still coming through, so I couldn’t put a finger on it.”

Industrial tenants often plan for 20 years, so when they make a decision to go ahead they commit, despite the state of the economy.

He says it is easier to start and finish residential building, but once commercial work commences it is hard to slow down.

Statistics NZ reports that commercial building has experienced falls in the previous two quarters.

It notes the rise could be due to a higher-than-usual number of building jobs worth more than $10 million.

The volume of all building work fell 2.1% this last quarter, the third successive drop and the lowest result since June 2002.

The report included alterations and additions, but excluded consents below $5000.

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is a Whitireia Journalism student. She likes films, food and fashion. When she graduates she would like to work as a radio or newspaper reporter.
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