Housing approval numbers reached their second highest monthly level over the past year in November 2011, Statistics New Zealand says, although they were down almost 6% on November 2010.
Statistics NZ also said November building consents in Canterbury identified as being earthquake-related were worth NZ$47 million, up from NZ$26 million in October and NZ$29 million in September. Since the first earthquake struck the Canterbury region on September 4, 2010, 914 earthquake-related consents have been issued, Statistics NZ says, worth NZ$230 million. This includes 217 new dwellings, of which 145 were relocatable units.
Nationwide for November there were 1,384 housing approvals granted , including apartments, which is down 5.9% from November 2010 and only bettered over the past 12 months by the 1,509 approvals last August.
A total of 1,275 new houses, excluding apartments, were approved in November, which is a 2.5% rise. This was also the second best over the past year, behind August's 1,330. A total of 109 new apartments - all retirement units - were approved, which was down from 226.
The largest regional increase was in Auckland, with November consents up 68, or 19%, to 430.
'Encouraging' rise in consents for office buildings
However, Statistics NZ's industry and labour statistics manager Louise Holmes-Oliver said approval numbers remain close to recent historically low levels.
ASB economist Jane Turner said overall residential consent issuance points to ongoing weakness in construction activity over the start of 2012. However, Turner said "encouragingly" in the non-residential area there was a rebound in consent issuance for office buildings. The value of consents for office and administration buildings in November was NZ$74 million, up 83% year-on-year.
"There was also an increase in the consent issuance of retail outlets and restaurants, suggesting businesses are starting to plan for expansion of operations in anticipation of a recovery in domestic demand over the coming year," Turner said. "Nonetheless, commercial construction intentions results have been mixed in recent business confidence surveys, suggesting a degree of caution remains amongst businesses."
ASB's economists expect underlying demand for housing construction to pick up over 2012, reflecting the current tightness in the housing market especially in Auckland. From mid-2012 they expect earthquake reconstruction to get underway and lift construction activity from current lows, back towards levels seen between 2003 and 2008.
"However, there remain many uncertainties around the reconstruction process and risks are skewed towards a later start. Overall, November building consent issuance points to continued weakness in the near-term construction outlook and highlights there is little need for the Reserve Bank to lift the Official Cash Rate (from 2.5%) before December 2012," Turner said.
A total of NZ$919 million worth of total building work, down NZ$74 million, or 7.4%, from November 2010, was consented in November 2011, comprising NZ$504 million of residential work (down NZ$9 million) and NZ$415 million of non-residential work, (down NZ$65 million). The NZ$504 million of residential work was the highest monthly figure in 12 months, since November 2010.
Most of Canterbury approvals by value was non-residential
Meanwhile, of the NZ$47 million of earthquake related approvals in Canterbury, NZ$35 million was for non-residential work, NZ$7 million for residential work including 10 new dwellings, and NZ$5 million was for non-building construction.
Of the 914 earthquake-related consents issued in Canterbury since September 4, 2010, 217 were for new dwellings, including 145 relocatable units.
Earthquake-related consents cover residential, non-residential, and some non-building construction. Non-building construction may include swimming pools, bridges, reservoirs, and retaining walls, Statistics NZ says. Consents that are mainly for demolitions are excluded.
A series of earthquakes have rattled Christchurch over the summer holiday period since quakes measuring 5.8 and 6.0 on the Richter scale hit the region on December 23.
Building consents - residential
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11 Comments
Gareth can you please clarify what is an "earthquake related" consent? The reason I ask is that our consent for a new build is likely to be issued in March, and is definitely EQ related (we will be leaving the red zone), but how does the CCC record it as such when it is in a new subdivision on bare land? In other words, what criteria are applied to determine this classification?
I have. Therefore we can assume that all such consents described are deemed "earthquake related", purely because of their type and being issued in the Canterbury region. Well I suppose you can call spec builds in new subdivisions EQ related if you wish, but does that actually add to the reader's understanding of what is going on down here?
Another instance where the unquestioning citation of official statistics sheds little light on the reality.
This collapse in building activity has nothing to do with the govt raising the theft tax to 15%....nothing at all...move along now thankyou...we will have no rubber necking at the mess...
The fact that nobody in the inner circle of National Party idiots realised their rapid fire gst/paye change would have unintended consequences is beside the point....the change was made and therefore the change was good....now repeat that 100 times and stop looking at the blood in the building sector.
"New Zealand building consents issued dwindled in November as the number of approvals in the South Island almost halved from a year earlier." Herald
"Who posted that....come on own up....we know who you are."...
If there was a Real Recovery Minister, and some real work being done building consents would be up in CHCH BIG time.
The guys in charge of this are friggin useless! 72 dwellings? Is that it? WTF, you'd get more done if no-one was in charge. "I want to know who's in charge. So I know whos arse to kick"
What the hell is going on down there, a TON on money was borrowed to pay for the sort out, where is it? Fat cats getting fatter. Corruption Greed and total incompetence!
These guys would be down the road if they were working for me. Not that I'd put up with that kind of crap for very long, a couple of angry warnings, and gone.
Friggin BS.
"If there was a Real Recovery Minister"....but skudiv every fool in the coaltion already is a Minister of something or some other thing...nobody left to appoint old chap...have to wait out the storm...spin the good spin and then some...never say they stuffed up...smile...always smile.
But whats the point of rebuilding on Jelly ? shake shake wobble and we all fall down, hey ho and off to EQC we go , and all that. Build the city somewhere else out by the airport or something, theres heaps of land. Anyway who knows how many residents will bunk off when the get their payout. Im not surprised there is sweet all building consents when the place is still riddled with quakes
You're right goNZ, they need to get on with it. They're in charge, with an army of beauracrats, and nothing is getting achieved. Pay the poor buggers so they can leave, give the insurance companies a hurry along. This is taking too long. All the keynsian natter about this being good for the economy. This is no good for anyone.
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