They were less optimistic on the housing outlook and pessimistic on the commercial outlook
Architects are expecting government work to support the building sector at a time when both residential and non-residential work is elevated, in light of Finance Minister Grant Robertson’s expanded infrastructure programme.
The New Zealand Institute of Economic Research (NZIER)’s quarterly survey of business opinion, which surveyed architects, found that a net 38% of architects expect an increase in government work over the coming 12 months while 21% over the coming 24 months.
The respondents were less optimistic on the housing outlook, with a net 6% expecting an increase over the coming year and a net 3% expecting a decrease in housing work. Meanwhile, they were pessimistic on the commercial outlook, with no change in expectations over the next 12 months and a net 6% predicting a decline in the year after.
“Architects' measure of activity in their own office points to a growing pipeline of residential and government construction over the coming year," NZIER said in the report. “The announcement by the government of plans to increase infrastructure spending should support growth in this area of construction.”
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Mark Smith, senior economist at ASB, said residential buildings work would be supported this year by population growth, recovery in the housing market, and low interest rates while non-residential work would likely remain elevated.
“We expect solid population growth, low mortgage rates and the strengthening market for existing dwellings to support building demand over the year ahead, and will be closely monitoring building costs for signs of pricing and resourcing pressures,” Smith said, as reported by NZ Herald. “Commercial construction activity is expected to be boosted by similar tailwinds.”
