Our take on the latest Building work put in place (Fri 6 Mar 2020)
Residential construction grew 4.1%pa
Non-residential construction grew 3.3%pa
Accommodation construction rose 49%pa
The key numbers...
- Construction volumes across New Zealand grew 3.8%pa in the December quarter, easing from the 7.7%pa growth in the September quarter.
- Both residential and non-residential construction volumes grew modestly at 4.1% and 3.3%pa respectively.
- Residential construction activity rose in every region, with the value of Wellington’s residential activity growing the fastest at 13%pa, while Auckland was the slowest with 5%pa growth.
- The value of non-residential construction continues to soften in Canterbury, dropping 11%pa, while Auckland and Wellington stood out, growing 18% and 16%pa respectively.
- Accommodation construction ended the year on a high, with December’s 49%pa rise taking the annual activity to sit 39% higher.
Work put in place
Annual % changes, Sept 1999 prices
...and our reaction
- Total growth in the construction industry slowed at the end of 2019 as expected. Looking ahead, we expect a peak in construction activity during the second half of 2020, driven by steady residential growth while non-residential activity eases slightly.
- Residential consent growth has been strong recently, but the abrupt spike in consents is likely to be followed by a smoother track for actual building activity as the construction industry struggles to progress larger volumes all at once.
- Softer residential construction growth in Auckland may be partially attributed to the increased time between the issuing of a consent and a code of compliance for housing of about 60 working days since 2014.
- Non-residential activity has more potential to be impacted by COVID-19 than residential building, due to its closer ties with how economic activity tracks.
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