Report forecasts $100 billion construction boom

  • Nick Smith
Building and Housing

Building and Housing Minister Dr Nick Smith today welcomed the findings of the second National Construction Pipeline report, which confirms building and construction activity in New Zealand is expected to reach unprecedented levels by 2017.

“The report released today points to the biggest construction boom this country has seen in decades totalling $100 billion over the next three years. It anticipates a minimum 10 per cent increase in activity every year to 2017, reaching a value of $35 billion. We are looking at the longest sustained period of growth in construction activity in 40 years,” Dr Smith says.

The latest findings support similar projections made in the first National Construction Pipeline report released in December last year. It shows slightly greater construction activity this year, and a lower peak in 2017 with the boom peaking slightly later in Christchurch in 2017 and Auckland in 2018.

“Growth in construction activity is on the cards for every region in New Zealand. I am particularly encouraged to see the strong forecasts for Auckland and Christchurch,” Dr Smith says.

“Auckland shows the highest level of construction activity, accounting for more than one-third of the upcoming workload in terms of value. This rapid rate of growth is driven by residential building, with the value of this work expected to more than double in value between 2012 and 2017.

“This affirms the success of the Government’s Housing Accord with the Auckland Council, where we will see thousands of new homes coming to market for families in the next few years.

“The forecast for Christchurch is further evidence that the post-earthquake rebuild efforts in the city are moving at pace. There are at least six Government projects due to begin in the next six months, with a collective value of nearly $1 billion.

“There is further good news for Christchurch in that this Government-funded construction activity appears to have wider, positive flow-on effects, with non-earthquake related, non-residential construction also expected to grow.”

The National Construction Pipeline provides national and regional forecasts of activity for residential and non-residential building and construction by central and local government, as well as the private sector.

The reports are commissioned by the Building and Construction Productivity Partnership, which is part of the Ministry of Business, Innovation and Employment (MBIE), and jointly prepared by BRANZ and Pacifecon New Zealand Limited. Its forecasts show the nature and timing of future building and construction work by type and by region through to December 2019.

“The National Construction Pipeline was developed following the recommendation of the Building and Construction Sector Productivity Taskforce for the publication of a forward-looking programme of sector activity. It provides the country’s building and construction sector with more certainty of future workloads, allowing the sector to better plan and invest in advance.

“This latest set of forecasts paints a golden era for New Zealand’s building and construction industry. The Government’s challenge is to invest in the skills to support this growth and to ensure our regulatory environment maintains high standards of quality through this period of rapid growth.”

The second National Construction Pipeline report is available at: