Building consent values skyrocket

Stats NZ data show the total value of building work consented was $29.38 billion, up $6 billion from 2019. Over the past seven years the value of building work has doubled from $14.63 billion in 2014.

In the December quarter last year alone total building value was $8.1 billion, up 17% from the December 2020 quarter. Total building volume rose 8.9% compared with the September quarter. From that residential building rose 5.2% and non-residential was up 16%.

Construction prices keep rising and in the December quarter lifted 4% for residential building and 2.2% for non-residential building, as measured by the capital goods price index.

It is not just residential construction value that is increasing. Three years ago the total value of non-residential building work consented was $7.46 billion but by last year that figure increased to $8.19 billion, up 9.8% compared to pre-Covid levels.