This amid a drop in residential projects
The December quarter witnessed a 4.6% increase in non-residential building work, reaching $3.1 billion, while residential building work experienced a 2.4% decline to $5.6bn, according to the latest figures from Stats NZ.
“The rise in non-residential building work offset a decrease in residential building work, which led to total building activity being flat for the December 2023 quarter,” said Michael Heslop, construction and statistics manager.
Overall building activity remains stable
Despite the fluctuations in residential and non-residential sectors, total building activity dipped by 0.1%, totaling $8.7bn for the December quarter. The adjustment accounted for seasonal patterns and price changes.
Annual increase in building work value
The annual value of building work concluded December marked a 7.1% increase from the previous year, totaling $37bn. This growth reflected adjustments for the rising costs in building materials and labour, highlighting the sector’s resilience amid economic shifts.
Leading sectors in non-residential growth
Significant growth was observed in the non-residential sector, particularly in health buildings, offices, and social, cultural, and religious constructions.
Hospitals and health facilities saw a 41% increase to $1.6bn, offices and administration buildings rose by 24% to $2.1bn, and social infrastructure surged by 43% to $1.2bn.
“The value of building work for health buildings and offices has been increasing steadily for the past two years, and in 2023 there was a similar increase for social, cultural, and religious buildings,” Heslop said.
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