Construction slump deepens as New Zealand’s crane index falls to lowest level since 2016

“The drop reflects the completion of several major projects, including aged care developments in Auckland and the removal of cranes from One New Zealand Stadium (Te Kaha) in Christchurch.”

Bradley Coley of RLB, which releases regular studies on the number of high-rise fixed and crawler cranes in New Zealand. Photo / RLB

Despite the downturn, the market may be nearing the bottom of the cycle, Coley said.

“While construction activity remains subdued, we are moving along the bottom of the cycle. Lower interest rates and population growth are expected to support a gradual recovery,” he said.

Last week’s gross domestic product (GDP) result showed construction was the worst-performing sector, down 1.4% in the three months to December 31, 2025.

Construction was the largest contributor to GDP in the quarter.

Crane numbers are down. Photo / Ross Setford

“The volume of building work put in place, a key input into how Stats NZ measures GDP, fell 3.1% in the December 2025 quarter,” Stats NZ general manager and macroeconomic spokesman Jason Attewell said.

“This was driven by a decrease in non-residential building activity.”

RLB studies crane numbers in main centres. Auckland has more than half the national crane total, although the city recorded a slight decline in the latest quarter.

There are:

58 cranes in Auckland;14 cranes in Tauranga, 11 cranes in Queenstown;Eight cranes in Christchurch;Four cranes in Wellington and four in Hamilton;Three cranes in Dunedin.GV Simplicity Living’s 297-unit rental project Te Reiputa on the Mt Wellington Highway, Auckland. Photo / Michael Craig

Activity in the residential sector continued to be supported by an ongoing development pipeline, including new contributions from Simplicity Living.

Simplicity erected two tower cranes at its Morningside project.

Tier-two contractors Kalmar Construction and CMP Construction continue to lead crane activity, while tier-one contractors remain at historically low levels of work.

Christchurch had the biggest drop, down 15 cranes, following the completion of major projects.

Christchurch’s new Te Kaha, where cranes once dominated. Photo / Smith Crane & Construction

Dunedin and Hamilton had modest gains.

Tauranga remained stable while Wellington and Queenstown now have fewer cranes.

There have been 56 cranes removed from sites during the quarter, while 42 new cranes were installed, highlighting a lack of replacement projects entering construction.

Coley said: “A key challenge for the industry is the limited pipeline of committed projects.

“Commitment beyond the design stage remains a major issue for the market, and even where projects do proceed, they are unlikely to reach construction in the near term.”

The total volume of building work last year fell 8.5% to $28.2 billion.

Tier-one contractors continue to report historically low levels of crane activity and limited new opportunities.

Coley said that was reflecting cautious market conditions and delayed project commitments across both the public and private sectors.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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