Pacifecon research manager Philip Dawes takes a look at the company’s latest Market Watch report which puts the spotlight on the industrial sector.
The end of the financial year is approaching and economists are saying that they’re cautiously optimistic that we could be experiencing a turning point after the hard slog of the past couple of years. While large developers and building companies continued to deliver during this slower period, the key to growth will be confidence in all parts of the construction sector.
Pacifecon’s monthly Market Watch provides analysis focusing on newly reported projects, progression of existing projects in the planning pipeline, and construction starts and cancellations across key sectors, including commercial, residential and infrastructure for New Zealand regions and the Pacific Islands.
The latest Market Watch shines a spotlight on the industrial sector. Although the number and value of projects in planning and tendering has decreased when compared to last year, it’s reassuring to note that was because a steady stream of projects moved into the construction phase.
In January, there were 1536 new projects reported with a value of $8392 million. The value decreased by 13% when compared to the previous month. Our research team reported 25,163 new projects at a value of $90 billion in the 12 months to the end of January. Over that same time period, the average number of New Zealand projects reported per month was 2097 at a value of $7514 million.
Catching the attention of the team were a few high-value projects entering the pipeline this month. These include:
• a private orthopaedic hospital in Waikato at a value of $75 million, to be housed in an extension of Anglesea Hospital,
• a $70 million solar farm with 45,000 panels, and
• a $65 million seismic upgrade of Benmore Hydro Station in Canterbury.
We also reported on the latest building consent numbers from Statistics New Zealand. In the year ended December 2025, the actual number of new dwellings consented was 36,619, up 9% from the year ended December 2024.
In December 2025 there were 3128 new dwellings consented, comprising:
• 1494 townhouses, flats and units,
• 1299 stand-alone houses,
• 263 retirement village units, and
• 72 apartments.
In the year ended December 2025, the non-residential building types with the highest values were:
• offices, administration and public transport buildings at $1.7 billion (down 5%),
• factories at $1.4 billion (up 14%), and
• education buildings at $1.4 billion (up 27%).
There were 13 new offshore projects entering the pipeline in January with a total value of $1213 million. One of the high value offshore projects is the $1 billion Fiji waste energy power plant and private port facility.
There’s also the Papua New Guinea submarine cables that are to be built by Google, and the $100 million Papua New Guinea mixed-use development, including 1300 residential lots.
If the tide is turning, it’s highly unlikely that the peaks in activity we experienced during Covid will be repeated. However, returning to a more normal high would be a relief.
• In addition to a highlighted project breakdown, each Market Watch includes commentary and graphs for each region. It provides a comprehensive picture of planned construction across the country to help your business.
Be informed, make strategic decisions based on projects planned and what has started, drive business growth, understand which regions are right for your future, and identify which sectors are growing in the regions. Head to pacifecon.co.nz/resources/market-watch/ to download sample reports, or contact us today to order your copy of Market Watch at
[email protected].
