New Zealand's level of construction to remain strong over coming year

Total NZ building work put in place rose 1.6% in the June quarter, taking the level of building activity to its highest level in ten years. June's increase in building work was underpinned by a 5% increase in non-residential construction. 

This offset a 1% decline in residential construction. Five years on from the first of the devastating earthquakes that struck the Canterbury region, the reconstruction process is evolving.

"Over the coming year it is expected that the level of construction will remain strong, but that growth will ease off. Underlying this is a continuing shift in the nature and geographic centre of construction activity", says Westpac. 

In Canterbury, which has driven much of the recent strength in construction activity, the rebuilding of homes is now well advanced and residential consent issuance has levelled off. At the same time non-residential construction in Canterbury has been increasing, and demand conditions in the Auckland housing market have been strengthening.