National Construction Pipeline Report 2023: Infographic
This is a summary of the National Construction Pipeline Report 2023, which provides a projection of building activity for the next 6 years through to the end of 2028.
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The Ministry of Business, Innovation and Employment (MBIE) commissioned BRANZ and Pacifecon (NZ) Ltd to provide a 6-year forward view of national building and construction activity (through to 31 December 2028).
Construction activity returns to 2020 levels
- In 2022, New Zealand’s total construction activity increased by 2.1% to $60.2b.
- From 2024, we are forecasting construction activity to decrease to a low of $54.6b in 2027, consistent with activity levels in 2020.
New dwelling consents returning to more sustainable levels
- We are forecasting almost 200,000 new dwellings to be consented over the forecast period at an average of 33,000 dwellings a year.
- New dwelling consents will fall to a low of 29,990 in 2025 and then forecast to increase throughout the remaining period to 2028.
Private sector drives strong pipeline of work in non-residential sector
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Non-residential activity is set to peak in 2023, reaching $12.4b, up from $11.9b in 2022.
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The private sector is the largest initiator of non-residential building, contributing 66% of the value of research intentions over 2023-2028.
Strong infrastructure pipeline throughout the forecast period
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In 2022, infrastructure represented one-quarter of total building and construction activity and forecast to increase, reaching $16b in 2026.
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Infrastructure activity in Rest of New Zealand (Gisborne, Hawke’s Bay, Manawatu-Whanganui, Marlborough, Nelson, Northland, Southland, Taranaki, Tasman and West Coast) shows good strength, up from $2.9b in 2022 to $3.5b by 2028. A proportion of this increase will be related to cyclone recovery and building further resilience into infrastructure networks.