With the decline in non-residential more pronounced
The seasonally adjusted volume of building activity in New Zealand experienced a notable dip, totalling $8.6 billion in the September quarter, down 2.4% compared to the June quarter figure, according to the latest Stats NZ figures.
The downturn was particularly pronounced in the non-residential sector, with a 5.9% decrease amounting to $2.9bn. Residential building work also saw a slight contraction, down 0.6% to $5.7bn during the same period.
“The September 2023 quarter marked the first time since the December 2022 quarter that there was a fall in the volume of non-residential building activity,” said Michael Heslop, construction and property statistics manager at Stats NZ.
Seasonally adjusted volume estimates were used to eliminate the influence of price fluctuations and typical seasonal patterns in these figures.
Despite the quarterly decline, the annual value of building work displayed a positive trajectory, reaching $36bn in the year ending September. This signifies a notable 10% increase compared to the corresponding period in 2022. It's important to note that value estimates consider changes in building costs over time, including material and labor costs.
Over the past 12 months, the capital goods price index revealed a 6.5% surge in non-residential construction prices and a 5.6% increase in residential construction prices.
Health buildings emerged as the primary contributors to the annual uptick in the value of non-residential building work, showing an impressive 45% increase to $1.5bn.
Other building types that significantly contributed to this rise include storage buildings, up 28% to $1.9bn, and offices, administration, and public transport buildings, which increased by 24% to $2bn, Stats NZ reported.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
