By Sarah McMillan/cvnznews.com
Residential construction costs have continued to climb across New Zealand, despite a sharp fall in diesel prices that briefly eased pressure on some parts of the sector.
QV CostBuilder’s latest quarterly update — covering more than 11,400 material price movements across Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin — shows diesel prices fell 18.9% between late April and the end of May. The drop provided relief for fuel‑intensive work, but not enough to halt overall cost inflation.
The average residential building cost per square metre rose 1.6% in the three months to the end of May 2026, and 2.4% over the past year.
QV CostBuilder spokesperson and quantity surveyor Martin Bisset said the easing in fuel costs had been welcome but insufficient.
“The reduction in diesel prices has provided some much‑needed relief for fuel‑intensive areas of work, but it hasn’t been enough to stop residential construction costs from rising overall,” he said. “Diesel is still significantly higher than it was earlier this year, and it remains highly volatile.”
Fuel‑driven trades reflected the shift, with excavation costs falling 5.1% last month and piling down 0.9%. But a wide range of core building materials moved in the opposite direction.
Garage doors increased 2.5%, framing timber 3%, ready‑mix concrete 4.1%, fibre‑cement cladding 4.8%, and cedar cladding surged 21%. Pipework saw some of the steepest rises, with PVC pressure pipework up 18.8%, PVC drain, waste and vent pipework up 21.6%, and polyethylene pipework up 25%.
“The broader picture is still one of modest cost growth overall,” Bisset said. “Construction cost inflation isn’t running away, but it is still present. Anyone planning a build should allow for some movement in costs.”
Non‑residential building costs — excluding educational buildings — rose 1% this quarter and 1.8% annually.
QV CostBuilder tracks more than 8,000 retail‑priced items, labour rates and building costs across the country.