Housing boom turns construction boon

Construction intentions among small firms rose sharply in the June quarter, for both residential and commercial property - with residential building intentions soaring to a record high, surpassing levels seen during last decade's property upturn.

Residential construction expectations hit their highest level since comparable data was first collected in December 1999.

Construction intentions rose strongly over the quarter for both residential construction (net balance 39%, up from 32%) and commercial construction (23%, up from 19%).

ANZ's Managing Director, Business Banking, Fred Ohlsson, said: "Builders, plumbers and electricians are gearing up as historically low mortgage rates breathe new life into the property market. Firms see building activity lifting nationwide as new homes are built or owners extend or renovate what they have amid renewed sales activity. This will be particularly welcome in the Christchurch and Auckland property markets which have been facing a shortage of supply.”

He said the construction sector was leading the way in terms of small-business optimism.

Larger firms reported a slight fall in construction intentions, in part reflecting delays to the Christchurch CBD rebuild amid ongoing aftershocks.