The number of new homes being consented shows no sign of slowing down despite the current weakness in the property market.
According to Statistics NZ, 4600 new dwellings were consented in September, the highest number since March and up 1.7% compared to September last year.
In the 12 months to September 50,732 new homes throughout the country were consented, up 7.0% compared to the year to September 2021.
Although the total number of new dwellings being consented is continuing to increase, the composition of the types of dwellings being consented is changing.
Stand-alone houses remain the biggest dwelling type with 22,697 consented in the year to September. But their numbers were down 10.9% compared to a year earlier, while the number of multi-unit dwellings is increasing.
There were 20,779 townhouses and home units consented in the September year, up 37.2% compared to the previous 12 months, plus 4372 apartments, up 4.3%.
Retirement village units accounted for another 2884 dwellings, up 9.8% on the previous year - see the interactive chart below for the monthly trends in dwelling types.
Auckland had the lion's share of consents with 21,985 new dwellings consented in the year to September, up 10.6% from the previous 12 months, followed by Canterbury with 8718 +18.1%, Waikato 4915 -3.0% and the Wellington Region 3819 +10.3%.
The total estimated build cost of the new dwellings consented in the year to September was $20.451 billion, plus another $2.512 billion of residential alterations. That takes the total value of residential construction consented for the year to $22.963 billion, up 14.2% compared to a year earlier.
On top of that $9.387 of non-residential building work was consented in the year to September, up 19.2% compared to the previous 12 months.
That took the total value of all building work consented in the September year to $32.35 billion, up 15.6% year-on-year.
The comment stream on this story is now closed.
Building consents - type
Select chart tabs
- You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
17 Comments
Resource consent applications are the leading indicator and I understand lodgements are down 25-30% in Auckland and Wellington over the past 2-3 months.
Any idea how other regions with chronic housing shortages are faring in this regard?
Auckland and Wellington have lost headcount by the tens of thousands in the last couple of years to regional centres like Hamilton and Tauranga. Would be interesting to know if developers in these cities are spooked as well.
Not sure sorry. HW2 and Carlos might be able to advise on Hamilton and Tauranga.
Still ticking along down here in Tauranga with the odd change. A few sections are coming on the market and the odd section is getting a house built. The market looks a bit flat because lets be honest its been boom times for years with a few big subdivisions having being completed. I expect new builds to dry up fast with increases in building materials, labour and interest rates. Still think house prices will flatline down here by the end of the year BUT it all really depends on where the OCR goes next year.
And code of compliance is the lag indicator - albeit the more useful one as that actually adds to the housing stock.
Sounds like even more surplus to requirement .
More supply than demand.
Building consents remain high despite property market slowdown
Like saying "Titanic still afloat immediately after striking iceberg".
The captain won't be going down with the ship. She has her eye set on a cushy position at the United Nations and banks will be competing to grab her chief officer who helped turbocharge their profits by billions.
Today I was pleased to be advised my resource / building consent for non notified simple 2 Brm dwelling in Tasman was approved. Why do simple jobs take two years to be approved. Why does the government keep pouring Billions into the big cities when some smaller areas are neglected.
I would refer you to the Tasman District Council, but it might take you 2 years to get an answer from them
If that took 2 years I would be looking at your consultants or managers for an explanation. Councils do OK as long as someone is chasing them.
Latest data appears skewed by apartments. All other sectors are trending down. And fast
Well it sure feels like house prices are going to keep dropping, supply is still rising at an unprecedented rate, population growth has stopped in its track, obviously interest rates are sky rocketing and property investment is absolutely dead*.
* because it is becoming deeply cashflow negative with the high interest rates, the end of interest cost tax deduction and more expenses to comply with the new healthy homes standard.
The news of record high building consents to September is puzzling to me. Material and labour prices have increased immensely at a time when house prices are dropping and there is a long delay in getting things done. On top of that, with the absence of immigration, supply has caught up with demanding and is in the process of exceeding it. This will all end up in tears!
There is prob a decent lag time in getting a BC approved (despite what the councils promise). Maybe we will see a significant drop off by the end of Q2 ?
House prices dropping, interest rates rising, negative net migration. But i still see entire blocks bulldozed down, preparing to construct god knows how many houses.
Won’t there just be a trend towards terrace or stand alone houses, being the cheaper form of development?
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.