New Zealand, December 01, 2024 – As New Zealand’s construction industry enters 2025, high inflation, elevated construction costs and economic pressures continue to challenge growth and confidence.
However, recent government reforms, including a ‘hard reset’ of key housing and infrastructure initiatives, along with substantial infrastructure investment, offer a stabilising force.
The newly released Construction Outlook Report – New Zealand offers the most comprehensive view of the construction landscape in 2025.
Drawing on national project data, the 2024 BCI Sentiment Survey and exclusive contributions from leading developers, architects and builders, the 2024 report uncovers trends that will shape the sector in the year ahead.
“In the face of economic challenges and a rapidly evolving market, having dependable data and advanced technology at our fingertips is crucial for New Zealand’s construction sector,” Ashleigh Porter, President, APAC, Hubexo said.
“Real-time insights equip us to make strategic choices, adapt to changing conditions and seize opportunities with confidence.”
PART 1: Pipeline Analysis: reveals significant trends and future developments across key construction sectors. A few key takeaways from this year’s findings:
Entering the Pipeline: The energy and resources sector is leading early-stage project values, driven by significant investments in renewable energy and utilities.
Blocking the Pipeline: While abandonment rates declined, deferral rates increased in Q3 2024, particularly in the Central Region’s residential sector.
Exiting the Pipeline: From Q3 2024 to Q3 2025, the energy and resources sector is set to lead construction commencement values, contributing approximately 46% of the total. The Northern Region is forecasted to dominate activity.
PART 2: Industry & Market Insights: provides comprehensive insights from industry stakeholders—including developers, architects and builders—on internal operations and strategies heading into 2025:
The 2024 Sentiment Survey: Captures key concerns and aspirations across the construction industry. Provides valuable insights into evolving stakeholder needs within their organisations, collectively shaping future strategies.
Topics/Chapters: The report examines core themes shaping the construction industry’s future: Project Risks, Government Support, Sustainability Initiatives, Addressing the Housing Shortage and Technology Insights. Each chapter addresses key challenges, strategic solutions and growth opportunities for the sector.
Contributors: Features exclusive insights from sector leaders who are navigating emerging challenges and pioneering solutions for growth. Contributors offer unique perspectives on overcoming industry obstacles and enhancing resilience within the built environment. This year’s contributors include:
- Architectus, Principal, Patrick Clifford
- Barnes Beagley Doherr, Director, David Doherr
- Callaghan Innovation, Head of Construction Innovation, Nick Sterling
- CMP Construction NZ Ltd., Commercial Manager, Andrew Moore
- Cook Brothers Construction, Business Development Director, Simon Glass
- CoreLogic NZ, Chief Economist, Kelvin Davidson
- DKO Architecture, New Zealand Studio Director, Dan McNelis
- Global GreenTag, Global Sales and Business Development Manager, Tyann Scott
- Icon, NZ Director, Dan Bosher
- Jasmax, Principal, Nick Moyes
- Maddren Homes, Managing Director, Keegan Anderson
- Naylor Love, Business Development Director, Scott Watson
- New Zealand Government, Minister for Building and Construction, Hon Chris Penk
- Ninety-Four Feet, Managing Director, Dean Rzechta
- Ockham Residential, Chief Executive Officer, William Deihl
- Plus Architecture, Director, Hamish Davies
- Prendos New Zealand Limited, Director + Registered Architect, Natasha Cockerell
- Wolfbrook Residential, Chief Executive Officer, Guy Randall