Statistics New Zealand Reports 4.7% Increase in NZ Construction

House on a residential street

The need for dust control efforts and paintwork will become greater in New Zealand, as building consents for new residential properties increased 4.7 per cent in the year ended June, according to Statistics New Zealand.

Building approvals covered more than 30,450 new properties, including houses, apartments, townhouses and flats. However, consents dropped on a seasonally adjusted basis for June, falling 8.3 per cent versus May.

Record Year

Despite the decline in approvals on a monthly comparison, the latest figures still placed the country on track to surpass the number of consents granted in 2016, according to Warwick Quinn, CEO of Building and Construction Industry Training Organisation.

Nationwide, building consents rose 8.4 percent in June year over year. By region, Quinn noted an increase in building approvals in several areas, including Northland, Auckland, Bay of Plenty, Hawke’s Bay, Taranaki, Wellington, Nelson, Marlborough and West Coast.

On the other hand, consents dropped in Canterbury, Tasman, and Waikato. If the pace of building approvals continue, the number of consents for 2017 will reach to 32,000, he added.

Long-term Effects

The increase in building approvals has also led to an increased need among enterprises to hire more workers, according to Quinn. Companies would require more than 60,000 labourers over the next five years, including those with trade qualifications, he said.

Aside from employment, businesses tied to construction will likely benefit from a recovering housing sector. ASB economist Jane Turner, for instance, believes that the residential real estate industry will remain strong for another year at least.

The industry has rebounded since showing signs of weakness in the second half of 2016, according to Turner.


Construction undoubtedly plays a crucial role in the economy of New Zealand. Aside from jobs, a higher number of building consents means more work for suppliers and equipment providers for building projects.