Non-residential building consents

Strong non-res result driven by public sector

1 Jul 2025
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Matthew Allman

Our take on the latest Non-residential building consents (Tue 1 Jul 2025)

Value of non-res consents
$979m
In May 2025
Factories consents total $215m in May
Highest public sector consent values since the start of 2024

The key numbers...

  • The value of non-residential consents in May was up 15% from a year earlier. The result brings the annual total back above $9b for the first time since December 2024. 
  • The result was driven by strong results across social (up $112m), factories (up $87m), and education building (up $26m). Offsetting some of the gains were weaker results in retail (down $43m) and offices (down $31m). However, offices recorded strong results over the past three months, up 45% from the same three months in 2024.
  • Wellington ($190m) recorded its strongest month since April 2019, after adjusting for building cost inflation. Canterbury ($253m) recorded more consents than Auckland ($227m) for the just the second time since April 2019. Bay of Plenty ($78m) and Southland ($50m) also had notable results, with Southland recording its highest month since September 2020.
  • Although there were no consents with a value of over $100m, there were several notable consents on the larger side. The Canterbury result was helped by two notable consents. One was a $90m hospital consent in Christchurch, likely relating to an acute mental health facility at Hillmorton Hospital. Another was an $80m social building consent in Christchurch, which is likely to be for alterations to the Canterbury Museum. Wellington’s result was also boosted by a consent of around $80m relating to Te Papa’s biodiversity research centre in Upper Hutt.

Public sector growth turns positive

Non-residential consents, year-end % changes
5320

...and our reaction

  • Public sector consents ($382m) recorded their strongest month since January 2024 and were up $93m from May 2024. Private sector consents also had a relatively strong three-month period, with activity up from a year ago (+2.1%pa) for the first time since October 2024.
  • We remain cautious, particularly around recent private sector consent results, as April’s strength was driven by a large $130m consent. When taken out of the three-month total, private sector consent growth dips to –5.9%pa.
  • The prospects for public sector consents to continue their recent stronger performance is better due to funding allocated to hospital and education building in the government budget, along with the government wanting shovels in the ground over the next 12 months ahead of the 2026 election. 
  • The latest ANZ Business Outlook survey showed a recovery in business confidence and investment intentions in June, with respondents pointing to central government policy as the second most important reason for investing, with the response likely due to the Investment Boost policy as this is the first survey conducted since the policy was announced. The strength provides some scope for non-residential consents to pick up earlier than forecast, although many investors might be holding out for more certainty over global economic and geopolitical conditions.

Latest updates

Premium
Non-residential building consents

Warehouses prevent further non-res falls in June

Mon 3 Aug 2026
Monthly
$701m Value of non-res consents in June 2026
7.4% Total non-res consents from May 2026 (seas adj)
37%pa Warehouse consents from June 2025
Premium
Non-residential building consents

Non-res consents weaker still in May

Thu 2 Jul 2026
Monthly
$789m Value of non-res consents in May 2026
19% Monthly consents from May 2025
49% Public sector consents from May 2025
Non-residential building consents

Non-res consents mostly softer in April

Wed 3 Jun 2026
Monthly
$655m Value of non-res consents in April 2026
15% Monthly consents from April 2025
Office and education consents at lowest monthly levels in 5-6 years
Non-residential building consents

Consents strong in March, but shadow of conflict looms

Fri 1 May 2026
Monthly
$862m Value of non-res consents in March 2026
15% Monthly consents from Mar 2025
$119m Hostel consents from Mar 2025