The building industry contracted by $3.571 billion in the year to June

The building industry continued singing the blues in the June quarter of this year (Q2), with the total value of building work undertaken down 8.5% compared to Q2 last year.

Statistics NZ estimates the value of all building work in Q2 this year was $7.841 billion, down by $728 million compared to Q2 last year and down by $1.212 billion compared to Q2 2023.

The biggest declines in value compared to Q2 last year were in the value of hotels and other hospitality premises -21.7%, followed by warehouse/storage building -16.1%, social/cultural/religious buildings -15.1% and retail premises -12.6%.

Residential building work declined by 9.1%, from $5.243 billion in Q2 last year to $4.764 billion in Q2 this year.

The only types of building categories to post an increase in work in Q2 this year compared to Q2 last year were office buildings up 1.4% to $559 million and hospital/nursing homes and other health sector buildings, up 2.2% to $492 million.

On an annual basis, $32.161 billion of building work of all types was commenced in the 12 months to June this year, down from $35.732b in the previous 12 months, a drop of $3.571b (-10.0%) for the year.

Total building work was down throughout most of the country in the year to June compared to the previous 12 months, with the biggest decline occurring in Waikato -13.1%, followed by Auckland -10.1%, Wellington Region -9.8% rest of North Island excluding the three main centres -12.5% and Canterbury -3.6%.

The rest of the South Island excluding Canterbury, was the only area to show an increase in the value of building work in the 12 months to June, up 1% compared to the same period a year earlier.