Our take on the latest Building work put in place (Mon 8 Jun 2020)
Total construction activity fell 8.2%pa
Residential construction fell 5.9%pa
Non-residential construction fell 11%pa
The key numbers...
- Construction volumes across New Zealand fell 8.2%pa in the March quarter 2020, the largest decline in activity since 2011.
- Non-residential construction volumes fell 11%, while residential building volumes fell 5.9%pa.
- The value of non-residential building grew in the Wellington region and South Island (excluding Canterbury) by 26% and 24%pa respectively. Every other region saw a decline in activity, with Canterbury falling the furthest (down 22%pa).
- Residential building value fell 6%pa in Auckland and 5%pa in Wellington.
- The value of health building and accommodation building grew 41% and 16%pa respectively before COVID-19 took its toll.
Work put in place
Annual % changes, Sept 1999 prices
...and our reaction
- The peak in construction activity has been abruptly cut short because of COVID-19. At the start of the year we anticipated one or two more quarters of growth, albeit softer than in previous quarters.
- Only the last week of the March quarter saw actual disruption to the ability to build. Weakening confidence of construction firms was already starting to play a part in the initial stages of decline.
- Despite the worst having still to come in the work put in place numbers, both residential and non-residential activity held up slightly better than we expected in the March quarter.
- Many consents were still processed during the lockdown (particularly residential consents), but we expect less translation into actual builds as nerves remain about the property market and prospects for the economy, with non-residential activity likely to be most affected by projects not going ahead.
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