Commercial building sets a hot pace

The commercial building boom is moving at a blistering pace, with $8.6 billion worth of work planned for the next three years.

Two studies have highlighted the speed of non-residential work.

The Institute of Economic Research prepared a quarterly outlook for national quantity surveying firm Rider Hunt which showed commercial building growth had pushed up prices by 10 per cent. Work worth $3.8 billion was planned in the 12 months to last September, a 16.6 per cent increase in that year. The value of work in Wellington doubled in the year to November, the institute found.

Sydney-based economic and industry forecaster BIS Shrapnel said although the commercial building sector was at the longest upturn in more than 15 years, action would begin to wind down. BIS highlighted the $8.6 billion worth of work coming up and picked the peak of the market towards the middle of the year. Adeline Wong, BIS senior project manager and study leader, said the value of building work would drop by 6 per cent between now and 2007.

But, she said, applications for $8.6 billion worth of building work would be made in the next three years and activity would remain at relatively high levels.