Published by the Ministry of Business, Innovation and Employment in February 2024 The National Construction Pipeline Report 2023 provides a comprehensive overview of construction activity and forecasts across New Zealand for the next six years.
A quick overview:
Overall Non-residential activity is forecast to remain stable and the decrease forecast in residential activity is expected to be offset overall by the increase in infrastructure activity.
The last report was released in July 2022 and since then - Total value of construction in Waikato/Bay of Plenty decreased by 4% in 2022 to $9.7b following an 8% increase in 2021. Contrary to the overall trend, non-residential activity increased by 11% while residential activity decreased by 9% and infrastructure experienced a slight decrease of 0.2%.
Residential Construction
As expected the change in market conditions is being seen and felt in the residential construction sector. The report indicates Residential building peaked in 2021 and is now forecast to decrease from $5.0b in 2022 to $4.2b in 2025, before rising again to $5.0b by 2028.
However we’ll see a steady increase in residential construction activity from 2025 in the Waikato/Bay of Plenty region from then onwards. This growth is primarily forecast to be driven by population expansion and demand for housing to accommodate the growing population.
Non-Residential Construction
The non-residential sector in the Waikato/Bay of Plenty region is forecast to remain steady, reaching $2.0b by 2028. It is also seeing substantial growth, with a focus on commercial and industrial developments.
Developments such as the Rangiuru Business Park lean into the regions infrastructure projects too, ensuring significant investment with the $60 million project to connect the business park to the roading network.
Other key projects of notable scale around town include:
New Zealand’s largest modern timber office building is taking shape at 90 Devonport Rd and will be eight storeys once completed (pictured above) - leased by Tauranga City Council.
Northern Quarter positioned in between Harrington and Hamilton Streets is 5,500m2 of office space and hospitality space for rent in a prime waterfront location. This new development will also provide 66 safe underground carparks, motorbike and bike parking spaces.
The Hamilton Street Commercial Centre building (above) - When complete, 35 Hamilton Street will be a 14-story building, comprising seven car parking levels on the base, and seven office levels on top. These developments are crucial for supporting economic growth and providing essential infrastructure for businesses.
Infrastructure Projects
Infrastructure plays a vital role in supporting the region's growth and connectivity. The report highlights several infrastructure projects, including roading, public transport, and water infrastructure initiatives. These projects aim to improve transportation networks, enhance access to essential services, and support sustainable development.
To take a look at some of the key national land transport projects in progress or about to begin you can view here
Investment and Employment Opportunities
The increase in construction ahead for the Waikato/Bay of Plenty region presents significant investment and employment opportunities. Local businesses and contractors are poised to benefit from the increased demand for construction services moving toward 2025 and beyond. Additionally, job creation in the construction sector contributes to economic resilience and prosperity in the region.
For more detailed insights and analysis, you can access the full report [here]