BUILDING ACTIVITY ON THE UP

Residential sector drives increase in building activity in the June 2021 quarter

The volume of building activity in New Zealand rose 2.0% in the June 2021 quarter, compared with the March 2021 quarter, according to Stats NZ.

“The June quarter showed high levels of building activity volume and follows a 4.1% increase in the March quarter,” said construction statistics manager Michael Heslop.

Residential building activity drove the increase, rising 4.2% in the June 2021 quarter, while non-residential building activity fell 1.5%.

These seasonally adjusted volume estimates show quarter-on-quarter changes in building activity after removing the effects of construction cost changes and typical seasonal patterns. Volumes are calculated at September 1999 quarter prices. Between the March 2021 and June 2021 quarters, residential building costs rose by 4.3%, and non-residential building costs by 3.1%.

Comparisons with June quarter 2020

The total building value was $7.2bn, up nearly 50% from the Covid-19-impacted June 2020 quarter.

Within this, residential building work rose 59% to $4.9 billion in the latest quarter, and non-residential work rose 33% to $2.3 billion.

By region, the actual value of total building work in the June 2021 quarter, compared with the June 2020 quarter, was:

• $2.8 billion in Auckland (up 37%).
• $777 million in Waikato (up 62%).
• $647 million in Wellington (up 47%).
• $1.3 billion in Rest of North Island (up 77%).
• $1.0 billion in Canterbury (up 57%).
• $730 million in Rest of South Island (up 42%).