Building work volume down 0.2%
The seasonally adjusted volume of building work in New Zealand for the June 2024 quarter was $8.2 billion, a 0.2% decline from the March quarter, according to Stats NZ.
“This is the lowest volume of building activity seen in a June quarter since the COVID-impacted June 2020 quarter,” said Michael Heslop, construction and property statistics manager.
Residential building work fell 0.7%, while non-residential work dipped 0.1%.
Annual value of building work also decreases
For the year ended June, the total value of building work was $36bn, down 0.1% compared to the previous year.
Residential building work contributed $23bn, a 4.1% drop, while non-residential work increased by 7.8%, totaling $13bn.
This decline in residential construction reflects rising material and labour costs, which increased by 3.6% for residential and 3.7% for non-residential projects over the same period.
In related news, Stats NZ recently reported a 22% drop in the number of new homes consented in New Zealand in the year ended July, while the latest QV CostBuilder quarterly update showed that building costs have largely stabilised.
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