Building activity grows

The overall volume of building activity rose a seasonally adjusted 3.7 percent in the March 2021 quarter, compared with the December 2020 quarter, Stats NZ said today.

Volume estimates show real changes in building activity over time, by adjusting for typical seasonal patterns and construction costs changes. Volumes are calculated at September 1999 quarter prices.

The estimated volumes of both residential and non-residential buildings grew in the March 2021 quarter. Residential work rose 4.3 percent, following a 1.8 percent rise in the December 2020 quarter, and non-residential work rose 2.6 percent, following a 4.0 percent fall.

"The construction industry continued to be busy in the March 2021 quarter, driven by historically high volumes of residential work," construction statistics manager Michael Heslop said.

The estimated volume of building work had been generally increasing since 2012 until COVID-19 impacted the March and June 2020 quarters. Total building activity then bounced back in the September 2020 quarter, and residential work remains at historically high levels.

"Recently consented new homes and non-residential buildings will be included in future quarters," Mr Heslop said.

See New home consents remain high in April.

These estimates remain provisional due to COVID-19-related measurement challenges. See Methodology for Value of building work put in place: March 2021 quarter.

The recent growth in building activity coincided with the rise in spending on hardware, building, and garden supplies, as shown in the latest retail trade survey data.

See Retail spending rises in first quarter of 2021.

Building work value down 1.1 percent in March year

In current prices, the estimated value of total building work was $25 billion in the year ended March 2021, down 1.1 percent compared with the March 2020 year. Within this, there was an estimated $16.6 billion of residential work, up 3.4 percent from the March 2020 year, and $8.4 billion of non-residential work, down 8.9 percent over the same period.

The value of work on residential buildings rose across all four main regions in the year ended March 2021, led by Auckland. Meanwhile, Auckland drove the decrease in non-residential building work, partly offset by rises in other regions except Canterbury.

"Auckland drove the rise in residential building work, and the decrease in non-residential building work in the March 2021 year," said Mr Heslop.

See regional data in Value of building work put in place: March 2021 quarter.