Building activity down in September quarter

The volume of building activity in New Zealand fell 8.6 percent in the September 2021 quarter, compared with the June 2021 quarter, Stats NZ said today.

Residential building activity fell by 6.4 percent in the September 2021 quarter, while non-residential building activity fell 12 percent.

“This was the first time since April last year that non-essential building activity paused due to COVID-19 alert level 4 restrictions,” construction statistics manager Michael Heslop said.

These volume estimates remove the effects of price changes and typical seasonal patterns. Between the June 2021 and September 2021 quarters, residential building costs rose by 4.0 percent, and non-residential building costs by 1.8 percent .

QuarterNon-residentialResidentialTotal building
Sep-16117560400016502750002825879000
Dec-16119205500016676930002859748000
Mar-17111416800016614950002775663000
Jun-17111638200016643880002780769000
Sep-17112306700017198550002842922000
Dec-17116597000017083970002874367000
Mar-18113915700017041450002843301000
Jun-18116417300017269100002891083000
Sep-18116004300017320450002892088000
Dec-18123252900017519350002984464000
Mar-19133208800018402650003172353000
Jun-19128156900018400140003121583000
Sep-19130641500018089120003115327000
Dec-19127116300018185590003089722000
Mar-20121820800017178500002936058000
Jun-2094683200014564150002403247000
Sep-20122455300019305900003155144000
Dec-20116278500019634880003126273000
Mar-21121863800020299450003248582000
Jun-21120288000020886860003291566000
Sep-21105330600019553050003008611000

COVID-19 had a significant impact on building activity in 2020. The alert level 4 lockdown in the March and June 2020 quarters resulted in decreased building activity, which bounced back in the September 2020 quarter. Since then, residential building activity has been at historically high levels.

The increase in residential building activity seen since the end of 2020 has followed record levels of consents for new homes. See Consents remain at record levels for more information.

Lockdown impacts on value of building work in Auckland

Auckland spent more time at alert level 4 than the rest of the country, which meant non-essential building activity was paused for longer.

As a result, the seasonally adjusted value of building work put in place in Auckland dropped 11 percent in the September 2021 quarter, compared with the June 2021 quarter (which is more than the 5.3 percent drop nationally).

“More than a third of all building activity takes place in Auckland so it significantly affects the national results,” Mr Heslop said.

The seasonally adjusted value removes the effects of typical seasonal patterns but does not remove the effects of price changes.

QuarterNon-residentialResidentialTotal building
Sep-1659047742212186858831809163304
Dec-1668644209712739743211960416418
Mar-1757523436212645077331839742096
Jun-1765568903812840547481939743785
Sep-1769339033913514785692044868908
Dec-1766198283413805117922042494626
Mar-1868679026614246914802111481746
Jun-1877367053114627400602236410591
Sep-1877035442415607039052331058329
Dec-1885941650615984777062457894212
Mar-1997533880816816662082657005016
Jun-19100267658916959074912698584079
Sep-19104175037116380993702679849741
Dec-19101460566016691545662683760226
Mar-2092457524315631458992487721142
Jun-2071957152013641466802083718201
Sep-2086711184318475883672714700210
Dec-2081510143118929996502708101081
Mar-2184101227519693130512810325326
Jun-2176749382720218163792789310206
Sep-2167676604618058972252482663270

Auckland was at COVID-19 alert level 4 lockdown from 17 August to 21 September 2021, before moving to alert level 3.

Revisions to statistics for June 2020-June 2021 quarters

We have revised statistics for the June 2020 quarter onwards to better reflect the impact of COVID-19 alert level changes. See Methodology for Value of building work put in place: September 2021 quarter (updated on 6 December 2021).

/Stats NZ Public Release. View in full here.