The number of new dwellings being completed in Auckland appears to be stabilising above 13,000 a year.
The latest figures from Auckland Council show Code Compliance Certificates were issued for 1023 new dwellings in February. Although that's little changed from the 1041 issued in February last year, it's up 34% compared to February 2020.
Code Compliance Certificates (CCCs) are issued when a building is completed and ready for occupation, so are the most reliable measure of new housing supply.
However Auckland's monthly figures can be volatile due to the timing of completions for large apartment complexes.
A better indication of the long term trends comes from the rolling annual total and rolling average monthly figures. Both of these show new dwelling completions in Auckland had been rising steadily since mid-2019 before peaking at 14,421 in the 12 months to June last year, with the record monthly peak of 1202 new dwellings also occurring in June last year.
The numbers then slid back slightly over the following four months before stabilising at around 13,300 a year over the three months from December last year to February this year. (See the graph below for the trend).
That means annual new dwelling completions in Auckland are currently running around 7% ahead of where they were a year ago, and 24% ahead of where they were two years ago.
Eighty nine per cent of new Auckland dwellings completed in February received their CCC within two years of of receiving their building consent.
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61 Comments
Loving the Health and Safety of the stock photo, hearing protection is just for show, and that guy with the multitool is about to slice off the other dudes finger.
Meanwhile. Another Auckland development which has resource consent for 12 terrace houses and a four-level apartment building in Panmure has been put up for mortgagee sale.
There will be plenty more, things are taking too long to complete, and costing more than budgeted.
Would love to see geographic distribution on all these houses. No doubt they're built 1hr+ from the city centre with a lawn as big as a carpark.
Built for investors, not for living long term in.
NZ housing is a sad state of affairs. Either buy a 1980's shitbox that an investor picked up for 1-200k years ago, neglected maintenance on & never renovated, for a small $1million. Or buy a shoebox on the outskirts of town for $800-900k with an hour commute with no real public transport options.
Quality of life in NZ is trending down with having to service such extreme mortgage requirements on such rubbish housing options.
Come xmas & increased servicing rates on mortgages the average kiwi will be eating beans on toast. Oh well atleast we've helped some third world countries populations come to nz and earn some decent money building all these houses.
If you are a skilled professional the solution is fairly obvious.
✈️✅
Multi-stop ticket is it?
Sure. Why not?
That is probably the better bet. If you're a skilled professional who doesn't need to work in a specific location, the smart money would be to work somewhere with a living cost 1/4 or less of living in a developed economy, invest the surplus.
Or, just do pretty much the exact same thing in a similar place, and get excited about paying 30 cents less for a block of cheese.
Doing the digital nomad thing is certainly a very good option up until your kids reach school age. There is far better value for money out there and a lot of a great places to visit and experiences to be had. Highly recommend.
But the primary reason for a skilled professional to jump on a plane is to avoid being extorted by the bloated cost and low standard of housing. There are certainly better uses for your hard-earned millions than handing them all over for a run-down shack in Te Atatu or Papakura so that some smarmy dropkick can retire early.
Why is school age a barrier? Makes no difference.
The same problems in Te Atatu exist in any developed city that's not going backwards economically or demographically.
But the problems are worse in Te Atatu, even if they are the same. Sure it's the case that countries like the UK, Australia and the US have rapidly increasing house prices and high house price to income ratios. But a house price to income ratio of 8 (London), while still high, is better than one of 11.2, which is Auckland's (according to latest demographia survey).
Thats really only an issue of degree, you can see that the problem is largely inescapable, if your wish is to live in a prosperous city.
The alternatives are to live somewhere with less demand, or find a way to earn quite a bit more than the average.
That's the problem. 'More than average' isn't enough anymore. Not even close. And that's before you get into the lifestyle hit you're taking, despite the pretty 100% Pure campaigns.
- Yes, we have beaches, but they're over-subcribed in Auckland.
- Yes, we have mountains, but it costs an arm and a leg to travel to and stay near them.
- Yes, we have food production, but our meat and diary costs more here than it does on overseas supermarket shelf
Yeah, by more than average, I'm talking lawyer or plastic surgeon income.
Personally I think large cities are a trap for anyone except big money types. Everyone flocked there from the countryside, and wiped out the efficiency benefits of a city by trying to cram too many people into too small an area.
Unless you want tenement housing.
If you think the beaches in Auckland are over subscribed... it really makes me think you have never been to beaches in Europe, or in any other major city, copacabana in Rio would blow your mind.
It's also pretty cheap to get to the mountains if you live on the same island as the ones you are going to.
I dunno, Auckland/NZ has its problems but as a 30 year old proffesional my quality of living in Auckland is pretty high. Certainly would be very rude of me to complain when there are people in other first world countries doing much worse. When I was 20 I visited my family in Stoke in the UK, I know where I would rather live...
No, I haven't been to Rio. I guess if I want that crowded experience, there's plenty of places I could go to get it. No point in turning NZ into an overly expensive poor substitute. As for the mountains, most of our tourism sector has been set up around well-heeled foreigners, which is a big ask for Kiwis battling local inflation in their day to day lives.
I guess the thing that annoys me most about New Zealand is we seem to be doing a lot of looking the other way while our living standards go backwards on the basis that others have it tougher or it could be worse. It's like we've just decided to not hold onto any of the things that make NZ a place worth living in. To quote Local Hero, "You can't eat scenery".
And likewise, as a professional in Auckland I'm still able to eat seven days a week, but I also didn't spend years studying and training to have to still time my petrol fill-ups with my paydays like I'm still a struggling university student in my mid-30s. Of course compared to some I'm living the Life of Riley, but having put off buying a house and having a family much longer than previous generations have... maybe we should ask how well it's actually working out for us as New Zealanders actually living in New Zealand? My guess for many is 'not actually that great'.
Bingo.
I agree to an extent, I'm certainly not an advocate for open slather immigration or tourism like the last nat govt. Traffic gets worse, water infrastructure stretched, houses get smaller, have to live further away from the city, not much of it benefits the average NZ.
I just don't agree with the narrative that even those with much higher than average wages have a low quality of life. That hasn't been my experience. I think part of it is Aus is right on our doorstep and they DO have a much higher quality of living for a variety of reasons (i.e. beaches, climate, high income due to resources). But surely GC, Melb, Sydney are in the top tier of first world countries and not meeting that standard doesn't mean life is bad over here.
Melbourne is a much more prosperous city than Auckland.
It has much higher salaries and it has lower house prices.
The problem is not inescapable at all. ✈️ ✅
There's more prosperous cities than Auckland. But if you're struggling to get by in Auckland, you're not going to be significantly better off in Melbourne or any of them, if you're just doing a sideways move.
Sounds like you've worked that out, given you're moving to the peripherals of a less in demand centre in Aussie.
The problem with one-dimensional thinking is that one needs to make a number of (very flawed) assumptions in order to arrive at a single (incorrect) conclusion.
Those with greater cognitive ability will consider a broader range of scenarios and be much more open minded about the conclusions they draw.
Here is a fun fact about demand in Australia.
Ah, so you're hoping to be early to market before house prices skyrocket.
If you can't beat em, complain about em till you're one of them I guess.
Simply correcting your misguided ramblings about demand in Australia. I see your reflex is to just regurgitate more fact-free nonsense.
There is little point interacting with somebody online who consistently has no idea what they are talking about. Your username should come with a disclaimer under it.
Previous posting by you has inferred you're moving to Queensland, a state, somewhere where good infrastructure is coming soon. That doesn't sound like it's in the centre of Gold Coast City, what your article is referring to.
You keep mentioning there's no point interacting with me and you're not going to, but you still do. There seems to be a large disconnect between the words coming out of your brain and your actual actions.
Fun though aye.
There is plenty of infrastructure spend happening across the region, including the Gold Coast, especially so with the Olympics on the horizon.
However it has been hilarious that you talked yourself into thinking I'm moving somewhere awful.
One day when you stop making so many dumb assumptions you may eventually get something right.
The previous posts have said you are already in Brisbane and have joined all your friends and family. So which one is it?
I was in Australia a week or two ago. I don't recall mentioning Brisbane. I'm back in Jacindastan at the moment. Is that okay with you?
I think all your rage is clouding your judgement mate. Scroll down and I asked you if all your family and friends are with you in Brisbane, to which you replied “why do you think I’m in Brisbane?” For someone that has been talking about leaving NZ for the past couple of years you sure are taking your merry time.
I'm not in Brisbane. So why do you think I'm there? I reject the premise of your question.
No rage here. Only sweet relief that I didn't buy the peak in Auckland. That would be idiotic.
Much better value for money and standard of living in Australia 🦘.
Idiotic would be paying tax in a country and being treated like a second class citizen. Having lived in Melbourne for 3 years you’re over inflating the benefits of living in Australia.
It's getting a bit that way in New Zealand if you don't have the right tribal heritage isn't it? Be careful who you label as idiotic though they might get offended.
Fortunately I'm a first class citizen.
Can always come back if it gets any better here. I wouldn't be holding my breath on that though.
Australia is getting the bright skilled professionals and New Zealand is getting the queue jumpers and 501s in return.
Nothing like a bit of casual racism to enhance your already stellar persona on this site aye Brock. Aussie can have you, Cronulla has your calling.
But the degree to which it is a problem in this case really makes a difference. An 800k house is still expensive, but a $1.12M house is even more expensive. Sure you haven't escaped unaffordable housing by moving to a market with $800k houses, but you're still a lot better off. Or to make it local - sure you don't escape affordability problems by moving from Auckland to Christchurch, because even in ChCh houses are still 'unaffordable' by most affordability measures. But you're still heaps better off.
Most responsible parents would agree that a stable schooling environment is likely to produce better developmental outcomes for children.
To the contrary the special combination of garbage houses, nose bleed price to income ratios and a backwater economy can only be found in a few of the very most hopeless cities.
Skilled professionals are generally quite smart people and are increasingly cottoning-on to the best course of action moving forward. ✈️ ✅
Thats really a belief more than anything re:schooling. There's some case to be made for socialisation, and the quality and consistency of parental education can vary, but the value of physical, traditional schooling is somewhat of a grey area (obviously better than no education). They also have schools in most countries round the earth also if you want to rid the house of Rugrats for a few hours a day. All requires inter-dimensional thinking.
I guess we'll beg to differ on whether NZ is some sort of extra special case.
A lot of skilled professionals seem to have managed to make decent lives for themselves in NZ. Some leave, the least wise waste an inordinate amount of time and mental energy moaning. The options are plentiful.
"the least wise waste an inordinate amount of time and mental energy moaning."
Maybe some of us here understand that your personal opinion does not override the cold objective reality of plunging ownership and affordability stats, and we kick up a fuss because others have been prepared to feather their nest at our expense - and we don't want our kids to grow up in a world trying to deal with the social fallout.
As a responsible parent I wouldn't feel comfortable uprooting my kids and dumping them into new school system every few months.
Just like I don't like the idea of them growing up in place where you must be born into wealth to have much hope or where you get special treatment for having tribal ancestry.
Whether or not skilled professionals have managed to make decent lives for themselves in the past is irrelevant. What matters is whether the non-home-owner skilled professional can today.
For most, the answer is either a very very low bar for a "decent life" or a resounding no. ✈️ ✅
"Whether or not skilled professionals have managed to make decent lives for themselves in the past is irrelevant"
I mean it is to a certain extent, but only if your existence doesn't revolve around not acknowledging that their might actually be an issue.
Go for your life mate.offski
Even better, upskill, work remotely and offer your services to the world without having to abandon friends and family whilst earning more than 3x nz wages.
For many people, their wiser friends and family have already made the smart decision to relocate to a lower cost and higher wage economy. ✈️ ✅
So all your friends and immediate family are in Brisbane with you now? That’s fortunate.
Why do you think I am in Brisbane?
Wanted to buy:Nice new house on quarter acre section 5 mins from a CBD in a city of 2 million, for 3 hundred grand.
Just making any old garbage up now, are we? Can't recall the last time I saw someone bemoaning not being able to buy a quarter acre section five minutes from a CBD anywhere in NZ for under $300K, but go off king.
Bought my 800m section in Christchurch about 15 minutes from the CBD 5 years ago for $240k.
Smaller sections farther out are worth $400-500k now.
Problem is chch. Yawn.
Some strange peeps down there as well.
Anybody know what the Auckland population growth is like of late and how that compares to the number of new builds coming to the market?
The fallacy of a housing shortage can't be far from being just that...but happy if data shows that I'm wrong.
Perhaps just a shortage of affordable houses compared to incomes (which I think has been a large part of our problem the last 10 years).
25,000 people left in the last 2 years.
It’s probably not that unusual, but usually it gets masked by very high immigration.
Working out if there's a shortage is more complex than population growth in the last couple of years. This is supposedly an issue a decade or so in the making, involving years of under development, population growth, shrinking household numbers (ie less people per dwelling) etc.
the Greens have come out and said they want rent controls. I don't know how well they understand the concept but if that is all they want then it won't work. they have an opportunity to develop a comprehensive policy here.
In the meantime the Government has stated they don't, believing that the number of completions will bring rents down. Is 13K enough? This article says the number is 'stabilising' at that, which means it has been coming up to and possibly even over shot it it. I get that there is indications that rents are dropping but is it because of the completions, rising interest rates, or other factors or a combination?
The status quo doesn't work but we've been doing it for decades now because it enriches older asset owners.
That said, rent controls could only ever be a short term emergency measure. LVT on the unimproved value of land and relaxing authoritarian NIMBY zoning would be more useful.
Rent controls are probably a bad idea. But they are less bad than the current situation. For that reason, I signed the Green's petition.
I'd prefer to see the Accommodation Supplement (aka welfare for lords of the land) scrapped.
Well, you will get your way big time this year in terms of getting rid of ‘NIMBY’ zoning, as you put it.
will make jack all difference to housing affordability.
At least you didn't say "Boomer" although it is clear you thought it. But your blinkers are blinding you too much. Yes we've been doing it for decades, but it is not because of who does or does not get rich from it. It is because the Government has failed to recognise the need for regulation in a market that never needed it, until it was far, far too late do do so without causing a lot of other problems.
But my concern is that the Greens are pushing Rent Controls without any seeming understanding of how they would be applied, work or would impact. In other words they are too shallow and thoughtless.
Rent Controls on their own would not work, there is ample evidence to indicate that. But rent controls as part of a whole package around housing regulation, including and with a partial focus on social housing could and would work and is needed.
Got an email today, 2 bed, 65 square metre townhouses in Manurewa, price reduced from 830 to 800k. Steal!
put a 10% deposit down, leaves you with a 720k mortgage at possibly 5-6% interest in a year’s time when the townhouses are complete (if they ever go ahead)
you do the math.
bet that one doesn’t proceed.
When the townhouses are completed they will also be worth less than 600k.
Be quick!
There you go, even better!
Be super quick!!!
Could have a new gang in town by the time it's completed too...better living everyone.
.
That photo reminds me of a mate who has had a nightmare with a new build townhouse, built by a Chinese company with subbies who speak no English and seem to be very low skilled. He’s had all sorts of issues, total cowboys. Main issues have been with the finishes - flooring, kitchen and bathroom fittings etc.
so much of the building work happening out there at the moment is incredibly shoddy.
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