Last week Air New Zealand announced plans to increase the number of domestic flights into Christchurch by 6% over the coming year. It is also working towards a 5% increase in the trans-Tasman flights run out of Christchurch with its partner Virgin Australia. The increase in demand for flights shows that both residential and commercial construction activity is expected to surge in Christchurch.
In 2014, we can expect an upturn in construction activity, particularly in the Canterbury and Auckland regions. This is despite recent figures from Statistic NZ which showed slightly lower figures than expected for the December quarter (October – December). Although residential activity rose by 1.1%, there was a 3.9% fall in non-residential construction.
While building consents fell in January 2014, Statistics NZ shows an almost three-fold increase in the number of residential dwelling consents issued in Christchurch this March and the issuing of building consents has reached the highest since 2007.
In Christchurch, building projects are already taking off, with construction in the region worth $809m in the December quarter. Auckland construction has also begun to pick up in response to housing shortfalls. With those drivers continuing in the New Zealand market, 2014 looks set to be a year of new projects and opportunities for the industry and for property owners.