WELLINGTON, Dec. 19 (Xinhua) -- Investment in residential buildings, as a share of total investment, is at its highest point since records began in 1972, New Zealand's statistics department Stats NZ said on Tuesday.
National accounts, including income and expenditure, shows residential building investment made up 32 percent of total investment in 2017. This is the first time it has been above 30 percent since the series began in 1972, Stats NZ said.
In contrast, plant, machinery, and equipment investment had its smallest share of overall investment, dropping to 19 percent in 2017, to be below 20 percent of total investment for the first time, at a 45-year low, it said.
"Until 2004, plant, machinery, and equipment were the largest component of investment. While it regained that place in 2009, residential building overtook it in 2013. The two asset types have followed different trends since then," national accounts senior manager Gary Dunnet said.
Many factors influence investment expenditure, Dunnet said, adding that construction costs are rising, in particular for residential buildings.
The impact of the surge in residential building investment can be seen by looking at the investment share of GDP, he said, adding that at 7.6 percent in 2017, residential building also had the greatest investment share across the full-time series back to 1972.
The drop in plant, machinery and equipment's share of total investment also reflects the changing shape of New Zealand's economy, Dunnet said, adding that investment in software and other intangible assets, which are not part of this asset group, is increasing as "all sectors of the economy make greater use of these digital tools."
