Bermuda's building boomnow starting to crumble
Bermuda's construction boom is showing signsof slowing according to the latest Quarterly Bulletin of Statisticsreleased by Government this week.
According to the Royal Gazette newspaper,the value of new construction projects for the 2002 second quarterwere not available in the latest release, but the total numberof completed residential units dropped from 71 in the first quarterto 60 in the second quarter.
This years second quarter was also wellbelow the peak of completed units in the same period last yearwhen 95 residential units were completed.
Total additions for the first six monthsof 2002 amounted to 131 units, as opposed to 150 in the previousyear. The downturn in construction of new residential units wasreflected in all sizes of units with the exception of two-bedroomdwellings, which increased marginally by two.
Building activity for one-bedroom dwellingsfell sharply during the quarter with only 13 added to the grosshousing stock, 23 fewer than the number completed in Q2 2001.Other evidence that suggests the construction market is slowingcan be seen by the value of imported basic materials which stoodat approximately $29.2 million in the second quarter of this yearcompared to approximately $32.8 million in the same period in2001.
According to the statistics, the value ofresidential work put in place in the first quarter of this year,estimated to be $15.8 million, was higher than any quarter sincethe beginning of 1999.
However, the value of new projects startedin the first quarter of this year was $5.8 million which is thelowest value in at least three years.
This figure is extremely low consideringthe average value of new work started during each of the previous12 quarters was $40.7 million. Excluding the $70 million Berkeleyproject, which inflated last year's first quarter figures to $94.5million, the average was $34.9 million.