Projections for New Zealand’s construction industry over the next six years have been released in a report by the Ministry of Business, Innovation and Employment (MBIE).
The National Construction Pipeline is based on building and construction forecasting by the Building Research Association of New Zealand (BRANZ), and data from building economics consultancy Pacifecon NZ Ltd on known non-residential building and infrastructure intentions.
We take a look at some of the report’s key findings:
- Construction activity growth forecast to continue and expected to peak at $43bn in 2021
- Residential activity in Auckland is predicted to grow and level out from 2020 onwards. The value of Auckland’s residential activity is expected to reach $12.2bn by the end of the forecast period, a 39% increase
- Non-residential building activity is forecast to increase 3.7% by 2021
- Infrastructure activity is forecast to overtake non-residential activity by 2023 – this would be the first time since 2013
Residential buildings contributed 58% to total construction value in 2018 and are the biggest contributor nationally. This is expected to grow moderately to $26.8bn in 2023. Non-residential building value is expected to peak at $9bn in 2021 and infrastructure activity is forecast to moderately increase throughout the period to $8.3bn in 2024.
Regional comparisons – total building and construction value
Canterbury was the only region not to see growth in total construction in 2018, with a decrease of 9% . Auckland saw strongest growth, up 13% on the year before, Wellington experienced 6% growth, Waikato/Bay of Plenty 5% and the rest of New Zealand, 1% in total construction.
The report states: ‘Throughout the forecast period, all the regions (except Canterbury) are expected to continue to grow. Auckland in particular is expected to see strong growth at 22%. Waikato/Bay of Plenty is forecast to grow by 13%, and Wellington and the rest of New Zealand are expected to grow by 3% over the period to 2024. Canterbury is forecast to reduce a further 22% to just above $5bn in 2024.’
To read the full copy of the report, click here.