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Sector information summarises trends and developments in the building and housing sector. 

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Previous versions of  the building and housing sector trends reports are available on request.

Building activity

Updated: 12 December 2011

Building work continues to decline  

The seasonally adjusted value of total building work put in place (which includes residential and non-residential work) has continued to drop since December 2010.  There was a 1.7% drop in the September 2011 quarter compared to the June 2011 quarter.

The value1 of building work put in place in the September 2011 quarter for:

  • All buildings was $2.50 billion, down 13.5% from the September 2010 quarter
  • Residential buildings was $1.36 billion, down 18.1 from the September 2010 quarter
  • Non-residential buildings was $1.14 billion, down 7.3% from the September 2010 quarter.

Building work for new dwellings is down 20.6% in the September 2011 quarter compared to a year ago.  However, there was a 12.2% increase in the September 2010 quarter compared to the preceding twelve months, and a 24.9% drop in the September 2009 quarter compared to the preceding twelve months.

The same trend has occurred for residential alternations and additions.  There was a 9.2% drop in the September 2011 quarter compared to a year ago.  However there was a 21.2% increase in the September 2010 quarter compared to the preceding twelve months, and a 15.6% drop in the September 2009 quarter compared to the preceding twelve months.

Figure 5a: Value of building work put in place (quarterly to September 2011).

The price-adjusted and seasonally-adjusted2 value of building work in the September 2011 quarter for:

  • All buildings was down 2.3% from June 2011 
  • Residential buildings was unchanged (0%) from June 2011
  • Non-residential buildings was down 4.6% from June 2011

Building consent values issued in the September 2011 quarter for residential and non-residential buildings, when seasonally adjusted, were up 11.0% and 5.7% respectively, from the June 2011 quarter.  It must be noted that it will take some time for building work to begin, relative to when the consents were issued. 

Figure 5b: Adjusted value of building work put in place (quarterly to September 2011).

1. The figures listed are nominal, unadjusted values.  Values are affected by changes in prices over time.  This tends to inflate apparent increases in the value of work over time.

2. The values are adjusted to correspond to September 1999 prices. The adjustment is based on the Capital Goods Price Index (CGPI) for construction. This removes the effect of price changes over time.  Seasonal effects are also removed.