Crane index reveals rising construction
Construction in New Zealand is still growing, as evidenced by the number of cranes, especially on Auckland’s skyline.
The latest crane index from Rider Levett Bucknall (RLB) shows the national crane count increased by two to 125.
The company using most cranes in Auckland was Fletcher Building subsidiary 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 [to] 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 the KiwiBuild policy, adding to Housing New Zealand’s 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 crane numbers, of 48 per cent and 22 per cent. ‘‘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,’’ Haines said.
Thirty-three new cranes have been erected in the Auckland area, and 23 removed from projects nearing completion.
Auckland’s crane count was driven by the hotel and civil sectors, with four new cranes each. 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 also recorded a slight net decrease of two cranes for the period.
The education sector was the only other sector besides residential construction 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 projects including: Waiparuru Hall at the University of Auckland; the Crest Apartments in Grey Lynn; developer Ted Manson’s Foundation Glen Eden apartments; the Lakewood Plaza apartments in Manukau; the central-city Library 27 apartments; The International apartments on Princes St; the Auckland Museum; the City Rail Link; the Four Points Sheraton Hotel conversion on Queen St; Ryman Healthcare’s Browns Bay aged-care apartments; the One55 office building on Fanshawe St; the wastewater pump station at Wynyard Quarter; Les Mills’ carpark building; the downtown Maritime Apartments; the Mount Eden Corrections Facility; Sylvia Park Shopping Centre’s car park; industrial buildings at Wiri; and apartments in Three Kings.
The number of new building consents in New Zealand have been steadily increasing since 2012, with an average year-on-year growth of 10 per cent.
‘‘The first three years’ free tertiary education policy may increase demand for student housing accommodation and new education buildings.’’
Chris Haines from Rider Levett Bucknall, left