Amount of new building work being started remains relatively subdued compared to previous years

Statistics NZ's latest estimates of construction activity remain grim in spite of a lift the September quarter (Q3) figures.

Statistics NZ estimates $8.199 billion worth of new building projects were commenced in Q3, up by $480 million (6.2%) compared to the June quarter (Q2) .

However, there is usually a lift in activity between the second and third quarters, so it is too soon to tell if the latest results are just the usual seasonal upturn or the start of a broader recovery in building activity.

The Q3 figures were down 4.4% compared to Q3 last year. The quarterly figures have now been lower than the same quarter figures of the previous year for seven consecutive quarters.

In the 12 months to September this year an estimated $31.571 billion of building work was commenced, down 9.6% compared to the previous 12 months. That followed a 3.2% decline the previous year, so the amount of new building work remains relatively subdued.

In dollar terms, the amount of building work started in the 12 months to September was down $4.523 billion compared to the 12 months to September 2023.

Both residential and non-residential work volumes have been in decline, although residential work has been declining for longer.

The value of residential project commencements compared to the same quarter of the previous year has been in decline for nine consecutive quarters, while non-residential commencements have been in decline compared to a year earlier for four consecutive quarters.

• A quarterly analysis of residential building consents, including average dwelling size by type of property consented and the average consented build cost per square metre, is available here. The same analysis for the main types of commercial building consents is available here.