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.

QuarterTotal buildingResidentialNon-residential
Mar-16266241033415408430441121567290
Jun-16280826699516337868711174480124
Sep-16282681313916510103271175802812
Dec-16285958004416680713431191508701
Mar-17277782809116605309241117297167
Jun-17277718661316635323131113654299
Sep-17284467349917213220261123351473
Dec-17287477348417098010721164972412
Mar-18284516444917018019641143362486
Jun-18288602933917251526091160876730
Sep-18289487769917346487091160228990
Dec-18298617045517548806891231289767
Mar-19317364761618357786641337868952
Jun-19311429687818371241291277172749
Sep-19311960999118126593681306950623
Dec-19309292426418233902261269534037
Mar-20293624151517119559271224285588
Jun-2023226494641392951192929698271.9
Sep-20310413089018880400081216090882
Dec-20308876913519211096971167659439
Mar-21320215551920041704411197985078

"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.

Year ended MarchResidential - Rest of New ZealandResidential - AucklandNon-residential - Rest of New ZealandNon-residential - Auckland
20178087590000495515600048416640002472210000
20188649835000544466400047777220002695529000
20198903800000630546800050290950003367254000
20209454184000656938700051772660003996566000
20219581503000698086300051681510003191476000
/Stats NZ Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.