COVID-19 slows building activity

The volume of building activity decreased a provisional 22 percent in the June 2020 quarter, after the COVID-19 alert level 4 lockdown stopped almost all residential and non-residential building during April, Stats NZ said today.

“Building activity in the June 2020 quarter was severely impacted by the alert level 4 lockdown, with a resumption in activity in late April under alert level 3,” acting building statistics manager Dave Adair said.

Quarter Residential buildingsNon-residential buildings
Jun-1664.5
Sep-161.10.2
Dec-1611.2
Mar-17-0.5-5.8
Jun-170.2-0.7
Sep-173.61
Dec-17-0.73.5
Mar-18-0.6-1.3
Jun-181.41.1
Sep-180.70.1
Dec-181.25.8
Mar-194.39.4
Jun-190.1-5.1
Sep-19-1.22.5
Dec-190.8-3.3
Mar-20-6.3-4.3
Jun-20-19.1-26.9

The COVID-19 alert level 4 lockdown, in place from 26 March to 27 April, prevented almost all building work. Construction was able to recommence on Tuesday 28 April when New Zealand moved to alert level 3.

Residential building volume fell an estimated 19 percent in the June 2020 quarter, following a fall of 6.3 percent in the March quarter. Commercial and other non-residential building work, ranging from office blocks, to shops, factories, and hotels fell an estimated 27 percent in the June quarter, after dipping 4.3 percent in the March quarter.

Building typeTotal buildingsResidentialNon-residential
Jun-0017272470001038334000688913000
Sep-0016827950001033747000649048000
Dec-001617745000874526000743219000
Mar-011546412000874727000671685000
Jun-011675554000914104000761450000
Sep-011653569000878884000774685000
Dec-0118183620001070452000747910000
Mar-021736879000970946000765932000
Jun-0217784040001038334000740070000
Sep-0219638480001203056000760793000
Dec-0220207480001225321000795427000
Mar-0320540070001292947000761060000
Jun-0320466430001338802000707842000
Sep-0322196880001409879000809809000
Dec-0321765050001399950000776555000
Mar-0422136920001429202000784491000
Jun-0423836920001532507000851185000
Sep-0423623440001451994000910349000
Dec-0422570870001389196000867891000
Mar-0523252230001421453000903769000
Jun-05249176400014125420001079221000
Sep-05237191800013333310001038587000
Dec-0523704970001372733000997764000
Mar-06246116400013957480001065416000
Jun-06230994100012925740001017367000
Sep-0622837760001344072000939704000
Dec-0622785120001372189000906323000
Mar-0723267690001361059000965710000
Jun-0723379940001426749000911244000
Sep-0723801970001480239000899958000
Dec-0724506440001466322000984321000
Mar-0822880720001353073000934999000
Jun-0821525650001239168000913397000
Sep-0821266930001157524000969169000
Dec-0819678940001006002000961893000
Mar-091960725000995985000964740000
Jun-091854373000920642000933732000
Sep-091786106000899812000886295000
Dec-091796518000977560000818958000
Mar-101818820000972602000846218000
Jun-1019761420001085419000890723000
Sep-1019093450001018765000890579000
Dec-101917695000943911000973784000
Mar-111771473000912886000858587000
Jun-111685055000822496000862559000
Sep-111643873000822860000821013000
Dec-111711217000870588000840630000
Mar-121673108000835352000837755000
Jun-121720443000921340000799104000
Sep-121875681000967818000907862000
Dec-121939551000996145000943405000
Mar-1319787660001072455000906311000
Jun-1320119400001081129000930811000
Sep-1320295900001167981000861610000
Dec-1320355170001190154000845362000
Mar-1423301780001349254000980924000
Jun-14234970300013492490001000453000
Sep-14240631200013315820001074729000
Dec-1423530260001364241000988785000
Mar-15240668400013831340001023551000
Jun-15242529300013737210001051573000
Sep-15243974900014044480001035301000
Dec-15250159100014538990001047692000
Mar-16266423600015405510001123684000
Jun-16280734600016335470001173799000
Sep-16282724500016516420001175603000
Dec-16285809400016684570001189637000
Mar-17278008600016595770001120509000
Jun-17277559800016629050001112693000
Sep-17284591700017225240001123393000
Dec-17287314600017108140001162333000
Mar-18284764800017002270001147420000
Jun-18288367900017239920001159687000
Sep-18289621800017356990001160519000
Dec-18298503200017573670001227666000
Mar-19317707000018334490001343621000
Jun-19311085300018352960001275558000
Sep-19312072000018130290001307691000
Dec-19309246900018276310001264838000
Mar-20292396000017130530001210907000
Jun-2022701700001385374000884796000

The level of activity was flat before the March 2020 quarter, after running at historically high levels for several years.

Effect of lockdown on methodology

“It was more difficult than usual to estimate building activity in the June quarter because of COVID-19 and the lockdown,” Mr Adair said.

Stats NZ reduced estimates of building activity as there was almost no construction under COVID-19 alert level 4. The June 2020 quarter figures account for typical seasonal patterns and higher construction costs and may be revised.

“This was an unprecedented period, with New Zealanders having to adjust to changing COVID-19 alert levels at both home and work, and manage physical distancing, additional cleaning, and building product supply challenges,” Mr Adair said.

See COVID-19 lockdown and value of building work put in place for June 2020 quarter for more information.

The value of building activity for ongoing projects appeared to be about normal from level 3 onwards, but lower than normal for recently consented building projects. This indicates that ongoing projects were prioritised ahead of new work. Despite the border closure, work continued on many surveyed ongoing hotel projects, notably in Auckland and Queenstown.

See Impact of COVID-19 on building projects for more information.

/Stats NZ Public Release. View in full here.