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Commercial building keeps Kapiti ticking over

Sep 15th, 2010 | By | Category: Front Page Layout, Latest News, News

building consents bldg3MAIN

UNDER CONSTRUCTION: Paraparaumu offices in Paraparaumu will be leased by Kapiti Coast District Council.

COMMERCIAL building went through a mini-boom in Kapiti in the year to July, while the rest of the country slumped.

The district had a 60% increase in the value of commercial building consents in the year, up $4.6 million to $12.3 million, compared to the same period last year.

Nationally, year-to-date values were down $922 million, or 20%, with the largest decline in the office/administration, education and hotel sectors, according to Statistics New Zealand.

building consents leighKapiti Coast District Council building control manager Leigh Sage (left) says he was expecting a drop-off but commercial activity has been kept going with new school and office buildings, and the refurbishments to Coastlands shopping mall making the retail sector one of the largest with a value of $5 million this year.

Projects in the pipeline are a new technical block for Kapiti College, sports and recreation facility in Otaki and the potential aquatic centre for Paraparaumu.

In the residential market, Kapiti is still recovering from the 2008 recession.

In the past year housing consents have flattened, a trend that is worrying, says Mr Sage.

He says the number of consents plummeted at the beginning of 2008, coinciding with new building requirements for water storage and grey water recycling for new homes, and a 20% increase in consent fees.

House numbers average about 14 a month, well below the monthly average of 30 three years ago.

Latest figures show a 23% rise in July, but numbers were small (up three to 16).

“It’s worrying obviously,” says Mr Sage.

commercial year to date small graph

“We rely on 90% self-funding so if we have less building consents we have got less money to run the department…so it’s bit of a balancing act in terms of financial survival.”

Statistics New Zealand says nationwide, the number of residential building consents for July 2010 was down 5.3% on the previous month, from 1316 to 1270, following a gradual rise 15 months ago.

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