Our take on the latest Building work put in place (Fri 5 Mar 2021)
Total construction activity down 0.6%pa
Non-residential construction down 8.5%pa
Res construction still up on September’s bounce back
The key numbers...
- Total building activity in the December quarter fell 1.5% from September (seasonally adjusted). This decline in activity saw the value of work put in place in the December quarter sit 0.6%pa lower than a year prior.
- The decline in building activity was due to weakness in the non-residential building industry, where activity fell 4.9% from the September quarter (seasonally adjusted), which was already weak.
- The weak non-residential industry was because of softer commercial activity, with both office and retail building falling hard, down 25%pa and 15%pa respectively.
- These declines in commercial building activity were felt most in Auckland, with a greater concentration of this work in the Supercity. The value of non-residential building activity in Auckland was down 21%pa in December.
- Residential building activity was strong in December, up 8.1%pa nationwide. Growth was relatively strong across all regions, with Wellington and Auckland leading the way, up 13%pa and 10%pa respectively.
Work put in place
Annual % changes, Sept 1999 prices
...and our reaction
- The strength in residential building activity comes as no surprise, with the booming housing market pushing residential consents close to all-time record highs. We expect residential building activity to maintain momentum going forward, given the shortage of housing supply and the strong demand for housing.
- Residential building is more labour intensive than non-residential building, which helps to explains why building construction employment was so strong in the December quarter, despite an overall decline in the value of construction activity.
- A cautious approach and concern for the economy coming out of COVID-19 is likely responsible for the weakness in non-residential building, but with most economic indicators showing promise, and business confidence sitting significantly higher, we could expect non-residential building activity to pick up slightly, or at least limit its declines, in the coming months.
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