Construction activity appears to be flattening out at about $8 billion a quarter, according to Statistics NZ's latest Value of Building Work Survey.
The survey measures the value of new work commenced every quarter, and this shows that $8.091 billion of new work on buildings of all types (residential and non-residential) was commenced in the first quarter of this year.
That was almost unchanged from $8.055 billion in the fourth quarter of 2021, although it was up by 20.1% compared to the first quarter of last year.
Of that, residential construction work accounted for $5.637 billion in the first quarter, which was up just 1.5% compared to the fourth quarter of last year, and up 22.8% compared to the first quarter of 2021.
Non-residential construction, which includes commercial buildings such as offices, shops and warehouses and non-commercial buildings such as schools and hospitals, accounted for $2.455 billion of work in the first quarter of this year, down 1.8% compared to the fourth quarter of last year but up 14.3% compared to the first quarter of l2021.
On an annual basis $30.571 billion of new building activity was started in the March year, up 20.1% on the previous 12 months.
The Auckland region dominated new building activity, with $3.323 billion of new building work commenced in the first quarter of this year, up 23.0% compared to the first quarter of 2021 with Waikato accounting for $785 million (+11.5%), Wellington $717 million (+13.3%), rest of North Island $1.399 billion (+27.9%), Canterbury $1.055 billion (+14.4%) and the rest of the South Island $813 million (+18.9%).
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5 Comments
The value of the work may be similar but that equates to less activity given that construction costs have risen so much.
That's right. We're just seeing the tip of the iceberg of construction companies going under.
Reduced orders (less construction activity) could be the straw that breaks the camel's back for those already struggling with high material and labour inflation on their fixed-price contracts.
If they can even get materials. My understanding is one monopoly controls plasterboard in New Zealand and the wait time is now beyond years end.
Your understanding is correct
Judging by the number of development sites I have been offered on the quiet in the last little but I think this is a short lived phenomenon.
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