Construction sector outspends housing for first time since 1989

The value of nationwide residential building work in the June quarter was lower than the value of non-residential building work for the first time since Statistics New Zealand began collecting figures in 1989, Statistics NZ said today. House building spending fell more than than construction spending with work on the Eden Park stadium and others supporting non-residential work. Based on 1999 prices, the seasonally adjusted value of residential building work put in place in the June quarter was NZ$935 million (unadjusted NZ$923 million), which was slightly below the NZ$941 million (NZ$937 million) value of non-residential building work during the quarter. Seasonally adjusted figures show the value of residential building work in the June quarter was down 6.5% from the March quarter, its seventh consecutive quarterly fall. It was 36.4% lower than it was in the September 2007 quarter and its lowest in seven years, Stats NZ said. The value of non-residential work was down 2.5% from March, its second quarterly fall in a row, although less than for residential. "In contrast to residential buildings, the trend for non-residential building work has remained stable," Stats NZ said. In year to June, non-residential building work had been held up by an increase in the building of stadia, justice system buildings, and offices. Unadjusted figures show the value of residential work was down 25% from the June quarter 2008, similar to the 26% year-on-year fall seen in the March quarter. Non-residential work was up 2% from a year ago on top of March's 4% rise.