Value of building work hits record highs

The value of building work hit a record high in the December quarter, but there are signs activity in Christchurch is beginning to slow

Statistics New Zealand’s latest Value of Building Work Put in Place report shows that the actual value of all building work, in current prices, was $4.4bn in the December quarter – up 10% on the previous corresponding period.

The total was comprised of $2.8bn in residential work and $1.6bn non-residential. The trend for all building work grew by 1.8% on the September quarter, also reaching a record high.

Auckland ($1.5bn) and Canterbury ($1.1bn) combined for 60% of the total national spend, but the report also showed activity is beginning to plateau in the South Island’s most populated region.

Comparing the December and September quarters, the seasonally adjusted value of all building work in Canterbury fell by 0.5%, following four consecutive quarters of growth. A 1.8% fall in the value of residential building work was offset by a 1.3% gain in non-residential.

In Auckland, the value of all building work was up 5.6%, with residential increasing by 3% and non-residential by 11%. All other regional groupings reported quarterly increases in the total value of building work: 

• Waikato – up 2.9%.
• Wellington – up 0.7%.
• Rest of North Island – up 6.4% (boosted by work in the Bay of Plenty).
• South Island excluding Canterbury – up 5.4% (boosted by work in Otago).

For the year ended December, the actual value of all building work hit a record high $16.6bn, comprised of $10.4bn of residential work and $6.2bn of non-residential.