Building activity eases in December 2022 quarter

The volume of building activity fell 1.6 percent in the December 2022 quarter, compared with the September 2022 quarter, Stats NZ said today.

The volume of residential building work fell 2.6 percent, while non-residential building work rose 0.4 percent, over the same period.

"Residential building activity eased in the December 2022 quarter, leading to the first fall in the total volume of building work since the COVID-19-impacted September 2021 quarter," construction statistics manager Michael Heslop said.

During the September 2021 quarter New Zealand was at COVID alert level 4 for two weeks and Auckland for a total of five weeks.

"The fall in residential building activity partly reflects the number of new homes consented, which peaked in early 2022," Heslop said.

For more information see Building consents issued: January 2023.

Volume estimates remove the effects of price changes and typical seasonal patterns.

Stats NZ has rebased its volume measures of building work put in place. Volumes now use constant September 2022 quarter prices. Previously, they used September 1999 quarter prices. For more details see Methodology for value of building work put in place: September 2022 quarter onwards.

Value of building work up 20 percent

The value of building work put in place was $34 billion in the year ended December 2022. This is up 20 percent compared with the year ended December 2021.

Value estimates of building work put in place (in contrast to volume estimates) include changes to building costs over time (such as material and labour costs).

In the past 12 months residential construction costs increased 13 percent and non-residential costs increased 10 percent. See Business price indexes: December 2022 quarter for more information.

Rise in value of non-residential building work

The value of non-residential building activity was up 20 percent in the year ended December 2022 compared with the year ended December 2021.

The building types that contributed most to this increase were:

• offices, administration, and public transport buildings at $1.7 billion (up 46 percent)
• storage buildings at $1.6 billion (up 40 percent)
• factories and industrial buildings at $1.6 billion (up 33 percent).