The number of new dwelling consents issued throughout the country jumped to 2926 in October, up 14.3% compared to September and up 14.8% compared to October last year, according to Statistics NZ.
For the 12 months ended October, 32,925 new dwelling consents were issued around the country, up 6.7% compared to the previous 12 months.
The figures also show a trend to build less stand alone houses and more multi-unit housing such as apartments and terraced houses.
In the 12 months to October, 20,918 new stand alone houses were consented, down 1.3% compared to the 12 months to October 2017, and that was down 0.8% compared to the 12 months ended October 2016.
On the other side of the coin 3835 new apartments were consented in the 12 months to October, up 27.8% compared to the 12 months to October 2017, which was up 17.5% compared to the 12 months to October 2016.
Townhouses and home units showed even stronger annual growth of 31.6%, and they have have maintained extremely strong double digit growth in the number of consents being issued over the last five years.
But surprisingly the number of retirement village units being consented has declined for the last two years, down from 2034 in the 12 months to October 2016, to 1902 in the same period of 2017 (-6.5%), and down to 1895 (-0.4%) in the 12 months to October this year.
So although the vast majority of new homes being consented (63.5%) are still stand alone houses, that percentage is declining and all of the growth is coming from multi-unit housing.
Around the regions, 1077 consents were issued in Auckland in October, which was up 26.1% compared to September and up 14.1% compared to October last year, but down from the levels achieved in five of the previous six months.
Unless there is a substantial lift in new consents issued in Auckland in November, then it appears that consents will once again start to fall well behind what is required to keep pace with the region's migration-driven population growth.
However there was strong growth in October's consent numbers compared to a year ago in Waikato +20.9% and Wellington +34%, while consents were sluggish in Bay of Plenty -4%, and Canterbury +2.9%.
See the charts below for the full regional figures and to follow the trends in the types of dwellings being consented:
Building consents - residential
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Building consents - type
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24 Comments
Good. Apartments and terraced units are the answer to the affordability question in my view. Stand alone houses with their own sections aren't going to get any cheaper in the long run.
Might actually be putting a dent in the shortage now. 70% of consents result in net additional units according to Core Logic, so of the 32,925 dwellings consented, 23,000 net additional units likely to be delivered. 22,960 units needed annually to accommodate net migration of 62,000 people annually at 2.7 people per household.
Com'on mfd, it's obvious Chch's rent are down because of the oversupply of rentals following the EQ. The rents went through the roof right after the EQ as many houses were inhabitable and there was a shortage, then after several years many had to rebuild as part of their insurance payout and there is from 2013 onwards an excess of rentals. That will not transpire to other parts of NZ
I was being somewhat tongue in cheek, yes it's an example of what can happen when you actually get to grips with a supply problem (whether intentional or not). Regardless, the outcome is very pleasant when rent rises are rarely seen and finding a decent place to rent is now relatively easy.
If the Sydney and Melbourne markets continue to tank, and NZ stays high, I wonder what that will do to trans-Tasman immigration numbers? Mind you, there won't be jobs in Oz if that continues.
Up to 30% drops in higher end Sydney properties now, and still look pricey. https://amp.news.com.au/finance/real-estate/sydneys-biggest-real-estate…
or bowling
https://www.youtube.com/watch?v=GZR58d77a4A
clearly there is a push in the regions.. with NET migration LOSS of 3k from Auckland to the regions last year , there is a boost to the regions..
with the recent changes to Education (favouring the regions), suddenly the so called housing shortage will be non existent..
Lots of newly finished houses sitting empty in the BOP. How much of that will have been speculative development by soon to be retiring 'mum and dad' developers? Will all of them get out of the debt obligations they've taken on? There has been a 'baby boom' in development on the coast!
In Tauranga this weekend and the level of new builds is insane, whole new sub divisions and existing houses for sale all over the place. No housing shortage down here, whole new streets going in with houses that are for sale that are not even in my GPS as yet. If there is a housing crash its going to hit real hard down here.
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