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Construction on the rise

Building activity is inescapable in Auckland – so it’s no surprise new data has revealed a SuperCity-led rebound in new dwelling consents.

Wednesday, March 30th 2016, 11:00AM

by Miriam Bell

February saw a strong rebound in the number of new dwelling consents issued, according to the latest Statistics New Zealand data.

Nationwide, 2,379 new dwellings were consented last month, which is the highest number for a February month since 2004.

This was a significant increase on the 1,695 new dwellings consented in January. It was also a year-on-year rise of 35%.

In seasonally adjusted terms, the number of new dwellings consented increased by 11% in February, to recover from a 7.8% fall in January.

Overall, the trend was up by 0.9% to reach its highest level since mid-2004.

Statistics New Zealand business indicators manager Clara Eatherley said February’s increase was led by Auckland.

In Auckland, there were 787 consents issued. This was up on January’s 506 new consents and was also a year-on-year rise of 49%.

But other regions, besides Auckland, also recorded increases.

“There were other strong increases in Waikato, Bay of Plenty, and Otago, although dwelling consents in Canterbury showed little change from the previous February,” Eatherley said.

Consents were trending upwards in 10 of the 16 regions year-on-year, but the regions with the largest increases were Bay of Plenty (up 98% to 200) and Otago (up 136% to 172).

In Canterbury, 525 new dwellings were consented, which was a 1.5% increase on February 2015.

Westpac senior economist Michael Gordon said February’s 11% rise suggested that the 8% decline in January was affected by the quiet New Year holiday period.

“Consents in both Auckland and Canterbury reversed their unusually large January declines. On a 12-month basis, consents in Auckland rose above 9,500, to their highest level since mid-2005.

“In contrast, consents in Canterbury remain well below their late-2014 peak, as the quake rebuild moves closer to completion.”

Gordon added that the February increase was led by multi-unit (apartment and terraced houses) consents, continuing their rapid but uneven climb over the last three years.

The rebound in consents, particularly in Auckland, is good news.

However, despite the promise of yet more cranes on Auckland’s skyline, the city’s supply shortage is such that the rise in consents still doesn’t meet requirements.

In the year to February 2016, Auckland’s annual consent total came in at 9,535 – a figure well below the 12-13,000 new dwellings it is estimated the city needs each year to match its population growth.

Auckland’s supply shortage is severe and well-recorded, despite some claims to the contrary.

Residents lobby group Auckland 2040 recently told media it does not believe Auckland has a long term housing supply problem.

Chairperson Richard Burton conceded that the city currently has short-term supply issues.

But he said this, and the high house prices, are due to the building industry, collapsed finance companies and developers, and strong demand from non-resident buyers.

« Mistake to overlook due diligenceFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora ▲5.43 ▲4.57 ▲5.58 ▲5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 6.05 6.15
TSB Special 4.79 ▼4.34 5.25 5.35
Unity 5.65 ▲4.80 ▲5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 17 May 2022 10:54am

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