Cranes await action on Govt policies
Construction in New Zealand is still growing, reflected by the number of cranes, especially on Auckland’s skyline.
Rider Levett Bucknall’s latest Crane Index shows the national crane count increased by two to 125 across the country.
The company using most cranes in Auckland was Fletcher Construction with 10 despite its decision last month to quit the building and interiors sector after losses on big projects.
Chris Haines, director of RLB Auckland, predicted more interest from Australian and Chinese companies in large projects worth more than $100 million.
‘‘It will be interesting to see how the new Government policies under Prime Minister Jacinda Ardern’s leadership will affect the buoyant construction sector.
‘‘On one hand the Government is seeking to reduce net migration, tighten work and student visas, with an estimated effect of reducing annual arrivals across these visa categories by 20,000-30,000.
‘‘It is reducing overseas purchasers’ rights and increasing residential investment tax, which may put the brakes on future investment.’’
However, this would be offset by more health sector spending and KiwiBuild, adding to Housing NZ planned work, he said.
‘‘The first three years’ free tertiary education policy may increase demand for student housing accommodation and new education buildings. This will need to be supported by consistent tertiary funding.’’
The workload in infrastructure, health, hotels and residential will remain strong for years to come, Haines said.
Across New Zealand, residential construction accounted for 54 cranes, or 43 per cent, and 25 commercial cranes or 20 per cent, down from 27.
The RLB Crane Index report for the first quarter of 2018 highlighted growth in work in place – up 13 per cent over 12 months to September 2017, to $17 billion.
Hotels and the education sector had the largest increases in cranes, of 48 per cent and 22 per cent, Haines said.
‘‘Auckland continues to dominate New Zealand skies with 83 cranes in place accounting for 66 per cent of all cranes counted across New Zealand main centres.’’
Thirty three new cranes have been erected in the Auckland area, and 23 removed from projects nearing completion, he said.
Auckland’s crane count was driven by the hotel and civil sectors with four new cranes each, and the commercial and civic sectors had two cranes, with one new one in the mixed-use sector.
Tauranga had an increase of three cranes, but Christchurch and Wellington saw net decreases of four, bringing their total counts to 13 and nine respectively.
House building continued to contribute most to the crane count, with 48 (57 per cent), but recording a slight net decrease of two cranes for the period.
The education sector was the only other sector besides residential to have a slight fall in new cranes, with one removed.
In Auckland’s residential sector, cranes on apartment projects accounted for 89 per cent of all the residential project cranes across New Zealand and 38 per cent of all cranes nationally.
In Auckland, new long-term cranes were observed at Waiparuru Hall at the University of Auckland, Crest Apartments Grey Lynn, developer Ted Manson’s Foundation Glen Eden Apartments, Lynfield Residential, Lakewood Plaza Manukau apartments, Library 27 apartments, The International, Mills Lane, Auckland Museum, City Rail Link, 4 Points Sheraton Hotel, Ryman Browns Bay Aged Care Apartments, ONE55 office, Wynyard Common pump station, Les Mills carpark building, Maritime Apartments, Mount Eden Prison, Sylvia Park carpark, industrial buildings at Wiri and Three Kings apartments.
The number of new building consents in New Zealand have been steadily increasing since 2012, with an average growth year on year of 10 per cent.