Residential construction down in 2014 Q1+ Q2: (CSO statistics)

by Bregs Blog admin team

Red-house-down-rates-decrease-graph

Residential construction down in 2014 Q1+ Q2: (CSO statistics)

The latest Central Statistics Office (CSO) September 2014 release  is mixed news for the construction industry and for those tasked with solving the housing crisis. Construction is improving, however residential activity and output is decreasing. See link to CSO webpage here.

Quote: “The volume of output in building and construction increased by 4.1% in the second quarter of 2014 when compared with the preceding period… The annual rise in the volume of output reflects year-on-year increases of 23.4% and 8.5% respectively in non-residential building work and civil engineering.

Residential Building decreased by 8.8% in the year to Quarter 2 2014.  See tables 1(c), 2(a), 2(b) and graph.” [emphasis in bold by Bregs Blog]

Not good news for policymakers attempting to deal with spiralling rents, house prices and supply issues. Indeed not good news for consumers, housing lists or first-time buyers. This reinforces anecdotal accounts of a Dublin-centered commercial property resurgence and runs counter to recent media spin on the issue.

Reduced residential activity is marked by a continuing fall in commencement notices since implementation of new building regulations S.I.9 in March 2014. Current levels are 30% below 2013 levels, a historic low for construction output.

Extract off CSO website:

CSO statistical release, 10 September 2014, 11am

Production in Building and Construction Index

table 1

Building and Construction Output increased by 4.1% in 2nd quarter 2014

table 2

The volume of output in building and construction increased by 4.1% in the second quarter of 2014 when compared with the preceding period.

This reflects increases of 9.3% and 4.7% in civil engineering and non-residential building respectively while there was a decrease of 1.9% in the volume of residential building*.  The change in the value of production for all building and construction was +5.9%. See tables 1(a), 1(c), 2(a), 2(b) and graph. 

On an annual basis, the volume of output in building and construction increased by 10.1% in the second quarter of 2014*.  There was an increase of 11.1% in the value of production in the same period. See table 1(a).  The annual rise in the volume of output reflects year-on-year increases of 23.4% and 8.5% respectively in non-residential building work and civil engineering.  Residential Building decreased by 8.8% in the year to Quarter 2 2014.  See tables 1(c), 2(a), 2(b) and graph.

table3Other posts of interest:

Commencement Notices – Update | 22 October 2014

A ‘perfect storm’ for housing? 

Karl Whelan: “…raft of cost-increasing building regs are at least partly responsible”

FAO Committee on Environment, Culture and the Gaeltacht- commencement figures

Construction Recovery- watch this space

‘Recovery’ is Still Worse than the 1980s Crisis

CSO: (Q1 2014) planning permissions for dwellings -30% drop

Minister Hogan rejects Irish Times Article

Irish Times: Dramatic fall in number of buildings being started

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