Archive | Construction

Property Council award a tribute to Maurice Clark’s reinvigoration skills

The Property Council’s supreme award last night, to the former Dominion Post building on Boulcott St in Wellington, now known as Waikoukou and the headquarters of Transpower NZ Ltd (pictured), is a tribute to Maurice Clark for his determination to salvage tired buildings and light them up for new users.

He also salvages old names. According to a Dominion Post story in 2015, Boulcott St was once a stream running down from bushclad hills, and the place it met Manners & Willis Sts was called Wai-koukou, for the pool where forest birds bathed.

I recall the Evening Post building (in 1969, well before the 2 Wellington newspapers merged) as a chaotic joining of structures, where reporters & sub-editors were separated by a chasm and a back staircase somehow dropped you at the door of the Britannia. And Boulcott St was the first place I drove a company car, a Fiat bubble car, managing to terrorise motorists & pedestrians on all sides before making it to the Holeproof factory at Shannon & back. But back to the awards:

Maurice Clark.

Mr Clark was developer through Cheops Holdings Ltd. [Cheops, the Great Pyramid of Giza, is the oldest of the 7 wonders of the ancient world. It’s notable as the only one of those 7 to remain largely intact.]

He bought McKee-Fehl Constructors Ltd in 1987, remains its owner & managing director and has focused its work in recent years on restoration, especially of quake-damaged structures, including Transpower’s former premises (originally Shell House) on The Terrace.

The construction company has a long series of building salvages to its name. Earlier projects include the 1904 Victoria University Hunter Building, the 1876 Law School (Old Government Building) and the 1908 Public Trust Building, now occupied by the Ministry for Culture & Heritage.

Mr Clark’s also had his engineering skills tested on the strengthening for the Victoria University Rankine Brown Building, Museum of Wellington City & Sea, and structural testing before redevelopment of the former Defence building at 15 Stout St, now occupied by the Ministry of Business, Innovation & Employment.

Mr Clark, 74, was made an officer of the NZ Order of Merit in 2016 for his services to heritage preservation & the construction industry.

Multiple awards for Waikoukou

On Waikoukou’s way to winning the supreme award at the Property Council-Rider Levett Bucknall industry awards, it was also best in the commercial office category and won a merit award for green building.

The awards judges said the Waikoukou project team had rejuvenated what was a largely vacant & obsolete collection of buildings, refurbishing the existing and adding a new office structure on top. They also added a hospitality courtyard & laneway, Press Hall, linking Boulcott St through to Willis St.

The judges commented: “Not only does the building’s superior structural resilience ensure Transpower uninterrupted operations in the event of an earthquake, the project team have transformed the property into a modern, seismically upgraded office environment.

“A ground-to-roof central atrium with connecting bridges between the north & south buildings and generous internal stairwell creates a unique social environment.

“The judges believe this project successfully integrates multiple challenges, delivering a thoughtful design, quality execution, and anchored with a long-term lease to a recognised tenant, resulting in a high quality investment asset.”

Supreme winner:
Waikoukou, 22 Boulcott St, Wellington, developer Cheops Holdings Ltd, along with project partners McKee-Fehl Constructors Ltd (Maurice Clark is sole director of both Cheops & McKee-Fehl), Architecture + Ltd, Jasmax Ltd, BlackYARD Engineering Ltd, Beca Ltd and tenant, Transpower NZ Ltd

Civic & arts, sponsor Warren & Mahoney:

Excellence & best in category: Ellen Melville Centre & Freyberg Place, Auckland
Excellence: Justice & Emergency Services Precinct, Christchurch; Matuku Takotako, Sumner Centre, Christchurch
Merit: Dunedin law courts, Dunedin; Manukau bus station, Manukau; Objectspace art gallery, Grey Lynn; David O McKay Stake & Cultural Events Centre, Hamilton; Salvation Army Christchurch City, Christchurch

Commercial office, sponsor RCP:

Excellence & best in category:
Waikoukou, 22 Boulcott St, Wellington
Excellence:
12 Madden St, Wynyard Quarter
Genesis Energy, Hamilton
Ministry for Primary Industries, Auckland
Pita Te Hori Centre (King Edward Barracks), Christchurch
Merit:
AA Insurance, Auckland
Alpine Energy office building, Timaru
Maori Television, East Tamaki
QBE Centre, 125 Queen St

Education, sponsor GIB:

Excellence & best in category:
King’s School centennial building, Remuera
Excellence:
Otago Business School, Dunedin
Te Auaha NZ Institute of Creativity (Cuba Dixon redevelopment), Wellington
Wakatipu High School, Queenstown
Merit:
Rangiora High School – Rakahuri building, Christchurch Ara Kahukura, Christchurch
Unitec construction, engineering & trades building (Mataaho), Mt Albert
Unitec Hub (Te Puna), Mt Albert
Auckland University Science Centre, Auckland

Green building, sponsor Resene:

Excellence & best in category:
Ara Kahukura, Christchurch
Excellence:
Pita Te Hori/King Edward Barracks, Christchurch
Te Pa Tauira – Otago Polytechnic student village, Dunedin
Merit:
Waikoukou, 22 Boulcott St, Wellington
Goodman fitout, KPMG Centre, VXV precinct, Wynyard Quarter

Health & medical, sponsor Fagerhult:

Merit:
Whenua Pupuke – Waitemata Clinical Skills Centre, North Shore Hospital, Takapuna

Heritage & adaptive reuses, sponsor Hawkins:

Excellence & best in category:
Dunedin law courts, Dunedin
Excellence:
Melanesian Mission, Auckland
Merit:
94-96 Queen St, Auckland
Air NZ airport campus, Auckland Airport
Bishop Selwyn Chapel & St Mary’s Church, Parnell
Christ’s College kitchen tower restoration, Christchurch
Mona Vale homestead, Christchurch
Sign of the Kiwi, Christchurch

Industrial, sponsor Yardi:

Excellence & best in category:
Röhlig Logistics, Mangere
Excellence:
Fonterra Co-operative Group, 109 Fanshawe St, Auckland
Merit:
Ministry for Primary Industries, Auckland
Potter Interior Systems Ltd, The Gate Industry Park, Penrose

Multi-unit residential, sponsor Arrow International:
Excellence & best in category:
Sale Street Apartments, 70 Sale St, Auckland
Excellence:
Hereford Residences, Freemans Bay
North West Quarter, Kensington Park, Orewa
Merit:
Centro, Sugartree, 27 Union St, Auckland
Millwater Central Terraces, Millwater, Hibiscus Coast
Te Pa Tauira – Otago Polytechnic student village, Dunedin
The Foundries, Freemans

Retail, sponsor RCG:

Excellence & best in category:
The Hub Hornby, Christchurch
Excellence:
Huami Restaurant – SkyCity Auckland Ltd, Auckland

Tourism & leisure, sponsor Holmes Consulting:

Excellence & best in category:
Ramada Albany, Albany
Excellence:
Auckland International Airport pier B extension project, Auckland Airport
Merit:
Bug Lab, Auckland Zoo, Western Springs

Urban land development, sponsor Natural Habitats:

Excellence & best in category:
Beaches – Coast Papamoa subdivision, Papamoa
Merit:
Jennings St-Jersey Avenue redevelopment by Housing NZ Corp, Mt Albert
Richmond subdivision (stage 1), Mt Wellington

Links:
Transpower, 11 June 2015: Maurice Clark to develop Wellington building for Transpower
McKee Fehl, Press Hall – a new landmark
McKee Fehl projects
Dominion Post, 20 July 2015: Many Maori names for Wellington landmarks lost – 150 years of news

Attribution: Property Council release, McKee Fehl, Dominion Post, Wikipedia.

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Commission opens investigation into Fulton Hogan’s Stevenson acquisition

The Commerce Commission has opened an investigation into Fulton Hogan Ltd’s proposed acquisition of Stevenson Group Ltd’s construction materials business.

The commission said yesterday it would consider whether the acquisition would be likely to result in a substantial lessening of competition in any relevant market in breach of section 47 of the Commerce Act. The acquisition is due to be completed by 31 July, but the parties haven’t applied for clearance for it.

Fulton Hogan is one of New Zealand’s largest roading & infrastructure construction companies. The commission said it would focus initially on the potential competitive effects of the proposed acquisition on quarry markets in Auckland & North Waikato.

It would also consider whether any competitive effects arise from Fulton Hogan’s proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant & equipment.

The commission seeks input to its investigation by Friday 29 June.

The sale would leave Stevenson’s with its property development & mining operations. Its biggest property interest is the 360ha Drury South industrial park it’s begun developing.

Related stories:
7 April 2017: Kiwi Property plans new town centre next to Stevenson’s Drury development
30 August 2013: Drury South industrial area plan change & MUL extension approved

Attribution: Commission release.

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Residential statistics – some taken with salt, some seriously

Statistics – be wary of them.

Colliers issued its latest figures on the residential markets yesterday, and on Auckland in particular. The first statistic was population growth, and it turned out to be first in a series of national statistics, this March & last, not Auckland statistics.

It concerned me because it showed net migration down 5.5% (71,932/year down to 67,984/year). But for Auckland, Statistics NZ put the fall in net migrant inflow at 3.7% (35,772/year down to 34,448/year, a decline of 1324/year). That is also an uncertain figure, because Statistics NZ has started trying to map movement of immigrants to see where they actually end up.

So, first statistic on which to base conclusions raises an alarm bell.

After that, it looked best to ignore the prognostication and stick to statistics of what has happened.

Except, Colliers’ statistics include a construction cost index rise of 4.6%, which Colliers national research & consulting director Alan McMahon told me was national.

According to Statistics NZ, the construction cost index rose 4.7% nationally in the year to March, but only by 0.3% in both Auckland & Wellington. Auckland’s rise was the smallest for the region since December 2012.

That puts paid to some of the assumption on which Mr McMahon based a broad commentary about market constraints: “Slower presales & rising construction costs make achieving a positive feasibility more difficult and bank funding harder to secure. If sale prices are steady and building costs go up, the only variable left to balance the equation is land cost. The problem is that a lot of land sold in Auckland between about 2013 & 2016 was priced on the assumption of continuing house price inflation. Since then, house price inflation has slowed, while construction costs have increased by 5% in the last year alone. As a consequence, some landowners can’t sell for a profit, nor can they develop at a profit, so they are essentially sitting tight for now.”

The Colliers chart shows residential consents for Auckland at 11,629 for the 12 months to April, which was up from 10,226 in the previous 12 months, a 13.7% rise. Statistics NZ’s breakdown of residential sectors is national, so I can’t show a comparison for apartments in Auckland.

The apartment sector

However, Colliers has monitored the supply of apartments, a sector in which it has become more active in the last 3 years.

It shows 10 apartment projects completed in the December 2017 & March 2018 quarters, 75 under construction and 28 at the marketing & design stage.

Looking forward, Colliers estimates 57 projects completed in 2018 & 2019, resulting in the addition of 4534 units. For the following 2 years to 2021, it estimates 46 projects & 4122 unit completions.

The notable feature of this is the decline in the central city’s dominance of the apartment market – down from 59% to 55% of supply by 2021, while suburbia rises from 16% to 21% of supply and the city fringe slips a point to 24%.

It puts the median apartment sizes at 97m² for 2 bedrooms, 146m² for 3 bedrooms and median asking prices at $10,955/m² for 2 bedrooms, $11,877/m² for 3 bedrooms. Those figures are for “all individual developments tracked”.

Colliers has identified 31 apartment projects that won’t proceed under original plans. 6 of those sites are being remarketed for sale or have sold, 10 have been abandoned under current proposals and 15 have been deferred.

Colliers also looked at suburban growth areas Hobsonville Point, Manukau & Mt Wellington and found median floor areas for terraces & detached homes of 113m² for 2 bedrooms, 162m² for 3 bedrooms, and median asking prices of $7462/m² for 2 bedrooms, $6571/m² for 3 bedrooms.

Attribution: Colliers report & release.

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Decision Monday on how to meet building consent flows

Auckland Council’s strategic procurement committee will decide tomorrow (noon Monday) whether to renew its overflow delivery model for building consent services.

The item is listed in the committee’s open agenda but the main discussion will be confidential.

The question for the council is how to provide an efficient service at peak times without employing its own staff to cover those peaks.

The council’s head of physical works & technical services procurement, Peter Cunningham, says in his meeting report: “Building consent services are currently provided through a combination of inhouse delivery, an overflow delivery model that operates across the Auckland region and a legacy outsourced provider model that operates exclusively in Manukau.

“In the central region, in addition to the overflow model there is also an agency provider to manage building consenting volumes.”

The current contracts expire on 30 June.

In further explanation, Mr Cunningham says: “The preferred regional service delivery model for building consents is one where third-party suppliers are used to process consents and inspect buildings that council staff do not have the capacity to process, eg, an overflow delivery model.  In an overflow model, the suppliers would act as an agent of Auckland Council.

“Due to restraint on additional staff and to manage risk of over-capacity, the overflow model is considered an essential component to ensure the delivery of an efficient, quality, timely building consenting service.

“The overflow model is considered a more feasible alternative to delivering the full service inhouse, as it provides flexibility during seasonal peaks & troughs in building consent volumes.”

Also listed in both the open & confidential sections of the agenda are:

  • an update on the 48 council projects with a budget over $5 million, and
  • the council’s vertical construction procurement category strategy
  • an update on the Westgate town centre integrated library & community centre.

Web notification issues

Through Auckland Council’s changes to its website it’s been hard at times to track the whereabouts of information such as resource consent application hearings and submissions on them.

The latest trick I’ve stumbled upon under submissions is submission documents with an opening date for submissions – but no closing date.

I’m writing this on Sunday, so ringing the council to check today would be pointless.

Similarly, the Eden Park Trust’s application for resource consent for a concert at Eden Park stadium on the evening of Waitangi Day (6 February) next year has the submissions period opening on Wednesday, no closing date.

The closing date will very likely appear on the website once the opening date has passed. But tell me, which would you, as a submitter, find the more useful?

Links:
Strategic procurement committee, Monday 11 June at noon, 135 Albert St
11, Update on capital projects over $5 million (addressed further in confidential agenda)
12, Procurement of building consents overflow services (decisions to be made in confidential agenda)
13, Status update: Westgate multipurpose facility (integrated library & community centre) construction (addressed further in confidential agenda)
14, Vertical construction procurement category strategy (addressed further in confidential agenda)

Attribution: Council committee agenda.

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Construction slowing – but still on growth track

Figures out from Statistics NZ on Wednesday on construction activity indicate slowdowns – but still growth – across all sectors, and specifically residential.

But an overall call on the direction of construction activity – residential & other, nationally & in Auckland, quarterly & annually – proves impossible. For starters, Statistics NZ doesn’t run actual residential figures for Auckland, just seasonally adjusted & trend, which longtime readers of these pages know I steer clear of.

Auckland construction (all sectors) jumped almost 15% from the March quarter to June last year, then plateaued for 3 quarters.

For the national picture of all construction sectors, looking back 4 years shows leaps in 2 years, lower growth in 2.

Residentially, the March quarter was the quietest since September 2015 but still showed growth.

The detail

Total building work put in place, March quarter: $5.28 billion ($5.6 billion & $5.5 billion in the previous 2 quarters, $5.16 billion in the March 2017 quarter)
Quarterly percentage shifts: Up 7.0% in the March quarter after 3 quarters of lower gains, a 10.9% rise in the March 2017 quarter and above-20% increases in the 3 quarters before that
Total all buildings for the March year: $21.57 billion, up $1.2 billion (5.9%) after leaps, since the $13.15 billion in the March 2014 year, of $2.5 billion (19.1%), $1.5 billion (9.5%) & $3.2 billion (18.7%)

The residential figures nationally, March quarter:

New: $2.92 billion ($2.71 billion in the March 2017 quarter), up 7.6% from the March 2017 quarter, the smallest quarterly increase since September 2015; increases in the last 3 quarters of 2016 were in the range of 24-28%, slipping to 14.8% in the March 2017 quarter
Alterations & additions: $568 million ($542 million in the March 2017 quarter), up 4.9%; this segment of the residential market has put $5-600 million of work in place in 9 of the last 10 quarters
Total residential: $3.49 billion ($3.25 billion), up 7.2%, the smallest quarterly rise over the last 3 years

The residential figures nationally, March year:

New: $11.78 billion ($10.82 billion), up 8.9% after a 22% rise the previous year
Alterations & additions: $2.31 billion ($2.23 billion), up 3.8% after a 12.9% rise the previous year
Total residential: $14.09 billion ($13.04 billion), up 8.1% after double-digit annual rises in the previous 4 years, including 21.1% in the March 2017 year & 26% in the March 2014 year

Auckland & Canterbury drive construction activity

Construction statistics manager Melissa McKenzie said Auckland & Canterbury accounted for $3 billion (56%) of the national value of total building activity in the March quarter: “Total
building work in Auckland was about $2 billion/quarter for the last year, while values in Canterbury were down from post-earthquake highs. However, these values were boosted by higher construction costs.”

In Auckland, she said, the value of residential building work had been growing strongly, with the March 2018 quarter value of $1.39 billion almost double that in the March 2014 quarter. Meanwhile, non-residential building work has shown moderate growth. Offices, education & accommodation buildings accounted for over half of Auckland’s $632 million total non-residential building work in the March 2018 quarter.

In Canterbury, the value of building work in the latest quarter was $941 million – the lowest quarterly value since the March 2014 quarter: “Residential building activity value in Canterbury has been generally falling since the March 2015 quarter. Non-residential building activity has been variable, but reached $440 million in the March 2018 quarter. The latest value was boosted by several projects on social, cultural & religious buildings.”

Auckland:
All buildings, March quarter: $2.02 billion (up 14.8% from $1.76 billion in the March 2017 quarter; the last 3 quarters have all been just over $2 billion)

Links:
Statistics NZ, 2 February 2018: Conferences, culture, and tourism boost consents
Statistics NZ, 31 July 2017: More hotels on the way

Attribution: Statistics NZ tables & release.

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Consents for new homes hit 14-year high of 32,000

Consents for new homes were up 30% in April compared to April last year, and the total for 12 months exceeded 32,000 for the first time since 2004.

Statistics NZ released the figures on Wednesday.

The national consent numbers for April & the year to April (previous April & year in brackets):
Total consents for new homes: 2729 (2106), up 29.6%; 32,015 (30,371), up %
Total values (including alterations & additions) & floor areas for new homes: month – $1.122 billion ($921 million), up 21.9%; 435,000m² (378,000m²), up 15.2%; year – $13.931 billion ($12.658 billion), up 10.1%; 5.555 million m² (5.462 million m²), up1.7%
Standalone homes: 1614 (1487), up 8.5%; 21,009 (21,179), down 0.8%
Apartments: 358 (228), up 57%; 3536 (2874), up 23%
Retirement village units: 191 (46), up 315%; 1962 (1702), up 15.3%
Suburban townhouses & flats: 566 (345), up 64%; 5508 (4616), up 19.3%
*Total values include additions & alterations, but floor areas don’t.

Consents for both the month & the year rose in 10 Auckland wards and fell in 3 (6 differing by small margins).

Around Auckland by ward, this April & last, and the April 2018 year & previous 12 months:

Region: 1163 (726), 11,629 (10,226)
Rodney: 45 (81), 910 (882)
Albany: 240 (125), 2468 (2508)
North Shore: 202 (25), 747 (494)
Waitakere: 73 (25), 608 (617)
Waitemata & Gulf: 5 (166), 1145 (1104)
Whau: 91 (51), 401 (343)
Albert-Eden-Roskill: 13 (25), 822 (674)
Orakei: 65 (4), 290 (283)
Maungakiekie-Tamaki: 55 (31), 721 (417)
Howick: 79 (28), 736 (452)
Manukau: 81 (32), 930 (394)
Manurewa-Papakura: 142 (73), 1161 (1106)
Franklin: 72 (60), 690 (952)

Attribution: Statistics NZ tables & release.

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Hawkins to pay $13.4 million to fix leaky new school

Justice Mathew Downs has ordered Hawkins Construction to pay $13.4 million + gst for remediation of a Botany high school which opened only in 2004.

Hawkins Construction North Island Ltd built the school’s buildings between 2003-09. The company’s name was changed to H Construction North Island Ltd in 2017, when Downer NZ Ltd bought the construction business from the McConnell family.

The claim was taken to the High Court by the Education Minister, Secretary for Education and the board of trustees of Botany Downs Secondary College.

Justice Downs said in his decision, out today: “The sum is not small, but Hawkins was paid approximately $28 million to build the school; pupils & teachers have not had the benefit of healthy code-compliant buildings for 8 years; and the award reflects the amount necessary to repair the school, not more.”

Judgment: Botany Downs Secondary College decision

  • More to come on this judgment once I’ve been through the detail.

Attribution: Judgment.

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Updated: Houses’ share of consents falls further as overall momentum slows

Published & updated twice 1 May 2018

The annual rate of building consents for new homes topped 31,000 last November, reaching 31,123, and in the following 4 months has risen by just 269.

After double-digit percentage rises over the previous 5 years, the rise in the last 12 months was only 2.5%.

The share of standalone houses for the last 12 months was 66.5%, down from 67.4% in the year to February, 70% in the year to March 2017.

Apartments and suburban townhouses & flats were well up for the year, by 27.5% for apartments and 14.8% for the townhouse category, but the retirement village sector’s production rate remains well below the last 3 years’ figures

Consents in Auckland were up for the month, from 942 a year ago to 1082, but were up by only 993 (9.7%) for the 12 months, to 11,192.

The Auckland consents comprised 492 standalone houses, 361 apartments, 221 suburban units & 8 retirement village units. Statistics NZ construction statistics manager Melissa McKenzie said three-quarters of the apartments were in 3 projects.

The national consent numbers for March & the year to March (previous March & year in brackets):
Total consents for new homes: 2926 (2779), up 5.3%; 31,392 (30,626), up 2.5%
Total values & floor areas for new homes: month – $1.257 billion ($1.199 billion), up 4.9%; 483,000m² (491,000m²), down 1.7%; year – $13.73 billion ($12.685 billion), up 8.2%; 5.498 million m² (5.523 million m²), up 4.9%
Standalone homes: 1753 (1923), down 8.8%; 20,882 (21,434), down 2.6%
Apartments: 492 (252), up 95.2%; 3406 (2671), up 27.5%
Retirement village units: 64 (197), down 67.5%; 1817 (1915), down 5.1%
Suburban townhouses & flats: 617 (407), up 51.6%; 5287 (4606), up 14.8%
*Total values include additions & alterations, but floor areas don’t.

Around Auckland by ward, this March & last, and the March 2017 year & previous 12 months:

Region: 1082 (942), 11,192 (10,199)
Rodney: 53 (122), 946 (890)
Albany: 195 (227), 2353 (2518)
North Shore: 43 (53), 570 (486)
Waitakere: 44 (55), 560 (652)
Waitemata & Gulf: 121 (116), 1306 (961)
Whau: 35 (40), 361 (310)
Albert-Eden-Roskill: 71 (37), 834 (670)
Orakei: 19 (12), 229 (306)
Maungakiekie-Tamaki: 31 (26), 697 (412)
Howick: 61 (24), 685 (495)
Manukau: 197 (38), 881 (394)
Manurewa-Papakura: 162 (114), 1092 (1108)
Franklin: 50 (78), 678 (997)

All construction for March compared to March 2017, and the latest 12 months compared to the previous 12 months:
Total: $2.003 billion ($2.077 billion), down 3.6%; $20.78 billion ($19.529 billion), up 6.4%
Non-residential: $714 million ($837 million), down 14.7%; $6.633 billion ($6.463 billion), up 2.6%

Attribution: Statistics NZ.

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Australia moves to more energy efficiency, but campaigners see avoidable costs locked in

Public submissions close this week & next on draft changes to Australia’s national construction code relating to energy efficiency.

Submissions close this Friday on residential changes, and on Friday 20 April for draft changes to improve energy-efficiency standards in commercial buildings.

Australian Sustainable Built Environment Council executive director Suzanne Toumbourou said on Monday: “Energy-efficient buildings cost less to light, heat & cool, so more energy-efficient commercial buildings will save Australian businesses money. These very welcome new standards will also reduce carbon emissions, helping Australia meet our obligations under the Paris climate change agreement.”

The draft code also includes new measures to improve compliance with energy-efficiency standards for new homes. However, minimum energy performance standards won’t be changed for residential buildings.
Ms Toumbourou argued that, as technology provides new ways to save energy and for buildings to generate their own energy, while energy bills rise, “this would be a great time to lock in better performance for future homes as well as commercial buildings.”

The Sustainable Built Environment Council & ClimateWorks Australia have released a joint report, The Bottom Line, which shows that stronger energy efficiency standards for residential buildings could save households up to $A150/year in energy costs. They said a 3-year delay in implementing stronger energy performance standards for new homes could lock in $A1.1 billion of avoidable energy costs by 2050.

Links:
National Construction Code 2019 public comment draft
Have your say on the changes proposed for NCC 2019
The Bottom Line – household impacts of delaying improved energy requirements in the Building Code

Attribution: Australian Sustainable Built Environment Council release.

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Quiet February for consents, standalone market share slides, Auckland share up

Consents for new homes issued in February fell by 6 from February last year, from 2418 to 2412. The tally for 12 months rose by just 83 to 31,245 (30,162).

For the year, consents for standalone homes fell 1.3% behind the previous 12 months, apartments jumped 29.2%, suburban townhouses & flats 12% and retirement village units 5.3%.

The further shift toward intensification and the growth in Auckland’s share of consents have reduced the standalone share of new housing consents nationally to 67.4% in the February year. Overall floor area was up marginally (0.6%) but the value of proposed new homes (plus additions & alterations) rose 9.3%.

Auckland’s share of consents for 12 months rose from 33.3% in the February 2017 year to 35.4%.

Consents were down 1-2% on Auckland’s borders, north & south, continued to decline in Canterbury and jumped in the Bay of Plenty & Wellington.

The overall picture is of a static residential construction market that covers the net inflow of migrants but not total population growth, and continues the intensification trend which should speed up as Aucklanders take advantage of the new rules for suburbia under the region’s unitary plan.

The figures released by Statistics NZ yesterday show residential consents in Auckland were down by 21 for February to 779 (800) and 8 short of the tally in February 2016. For the year, Auckland consents have advanced by 10% to 11,052 (10,045) after rising 5.6% the previous year.

The total value of residential consents nationally in February rose 5.2% from a year ago to $1.12 billion ($1.06 billion). For the year, the increase was 9.3% to $13.67 billion ($12.5 billion), down from 14%-plus increases in the previous 2 years & 27%-plus in 2013 & 2014.

The national residential consent numbers for February & the February 2018 year (previous February & year in brackets):
Total consents for new homes: 2412 (2418), 31,245 (30,162)
Total values & floor areas for new homes: $963 million ($912 million), up 5.6%; 434,000m² (450,000m²), down 3.5%; $13.671 billion ($12.507 billion), up 9.3%; 5.506 million m² (5.475 million m²), up 0.6%
Standalone homes: 1664 (1761), down 5.5%; 21,052 (21,326), down 1.3%

Standalones’ share of annual consents: 67.4% (70.7%)
Apartments: 133 (225), down 40.9%; 3166 (2451) up 29.2%
Retirement village units: 107 (59), up 81.4%; 1950 (1852), up 5.3%
Suburban townhouses & flats: 508 (373), up 36.2%; 5077 (4533), up 12%

Around Auckland by ward, this February & last, and the February 2017 year & previous 12 months:

Region: 779 (800), 11,052 (10,045) – 35.6% of annual total
Rodney: 57 (87), 1015 (868)
Albany: 196 (196), 2385 (2469)
North Shore: 30 (72), 580 (508)
Waitakere: 49 (44), 571 (648)
Waitemata & Gulf: 11 (73), 1301 (859)
Whau: 20 (2), 366 (287)
Albert-Eden-Roskill: 117 (33), 800 (673)
Orakei: 22 (71), 222 (303)
Maungakiekie-Tamaki: 31 (6), 692 (408)
Howick: 69 (51), 648 (520)
Manukau: 64 (14), 722 404)
Manurewa-Papakura: 76 (75), 1044 (1087)
Franklin: 37 (76), 706 (1011)

Residential consents this February & last, and the February 2017 year & previous 12 months, in a selection of provinces:

Northland: 115 (131), 1237 (1261), down 1.9%
Waikato: 264 (294), 3469 (3512), down 1.2%
Bay of Plenty: 166 (226), 2630 (2055), up 28%
Wellington: 239 (133), 2432 (1711), up 42.1%
Canterbury: 375 (361), 4962 (6319), down 21.5%

Total & non-residential:

Total construction consents rose 12.6% in February to $1.68 billion ($1.42 billion), and 10% for the year to $20.855 billion ($18.956 billion).

Non-residential rose 28.3% for the month to $526 million ($410 million), and 11% for the year to $6.756 billion ($6.086 billion).

Attribution: Statistics NZ tables.

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