Our take on the latest Building work put in place (Fri 8 Mar 2019)
Non-residential construction rose 5.8%pa
Auckland non-residential building rose 29%pa
Shop construction up 41%pa
The key numbers...
- Both residential and non-residential construction activity improved in the December quarter, seemingly shaking off the capacity issues that had prevented growth in previous quarters.
- Non-residential construction activity in Auckland beat our forecasts by 12% in the December quarter, and building consent data suggests considerable work remains in the pipeline for the next 12-18 months.
- However, we are cautious over the future growth in non-residential construction, with capacity constraints still likely to restrain further growth. The recent collapse of Arrow Construction is another warning sign about the health of the subindustry.
Work put in place
Annual % changes, Sept 1999 prices
...and our reaction
- The value of building work put in place started to fire again in December after a lacklustre September quarter. Total activity rose 4.1%pa, the fastest rate in two years.
- Non-residential building activity drove this growth, up 5.8%pa. Key contributors by building type were shops (up 41%pa), accommodation (up 32%pa), and factories (up 15%pa).
- Growth in Auckland activity improved in December, with non-residential construction up 29%pa and residential construction up 16.3%pa. Auckland now represents over 41% of total construction activity, its largest share since early 2003.
Latest updates
Premium
Building work put in place
Construction activity at a 10-year low
Thu 4 Jun 2026
Quarterly
13% Non-residential activity in March 2026 from March 2025
3.9% Residential activity from March 2025
Total building activity at its lowest level (excl lockdowns) since 2015Premium
Building work put in place
Non-residential work hammered as residential softens further
Thu 5 Mar 2026
Quarterly
6.5% Non-residential activity from September 2025 (sa)1.1% Residential activity from September 2025 (sa)Total building activity at its lowest level (excl lockdowns) since 2015Building work put in place
Non-residential activity continues to decline
Thu 4 Dec 2025
Quarterly
Residential volumes up 3.3% in September from June 2025 (sa)Non-residential volumes down 1.3% in September from June 2025 (sa)Total quarterly activity now down 5.3% from September 2024Building work put in place
Lower residential activity leads construction decline
Thu 4 Sept 2025
Quarterly
Residential volumes down 2.9% in June from March 2025 (sa)Non-residential volumes down 0.4% in June from March 2025 (sa)Total quarterly activity now down 9.6% from June 2024