Chch top in home-building upturn

Press, 27 June 1989, Page 2

Chch top in home-building upturn

Wellington reporter A strong recovery in home building was recorded in Christchurch last month, according to

the Statistics Department’s latest dwelling permits figures. Permits were up nationally compared with the depressed conditions in May 1988, but Christchurch showed the strongest improvement. Dwelling permits issued in May for Christchurch totalled 105, almost four times the May,

1988, figure ol 28. Nationwide, 2116 dwelling permits were issued in May, up 37.6 per cent on May last year.

Housing construction trends are regarded as a key indicator of economic activity, although some economists have been predicting a rush of housing starts before the July 1 incrase in GST. For the year to May, 20,662 new dwelling permits were

issued, up 917 on the year to May, 1988.

Figures showing the value of building work during the three months to the end of March indicate any upturn in the trade is restricted to housing. This figure was down 8.6 per cent on the March quarter of 1988, when the construction industry was still finishing projects begun before the October, 1987, sharemarket crash.

The value of buildings in the March quarter was $1.09 billion, down 0.7 per cent on the December quarter of 1988, seasonally adjusted.

Housing work showed a slight increase on the same quarter last year, but other buildings were down in total value. The main contributor was commercial buildings, down 28.4 per cent on the March quarter 1988, at $278.1 million.