tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, March 28th, 10:13PM

News

rss
Latest Headlines

Slowing consent trend a concern

Dwelling consents may have just hit a new high, but the trend is slowing – and that’s a worry, particularly for supply-strapped Auckland, economists say.

Thursday, January 19th 2017, 12:30PM

by Miriam Bell

Statistics New Zealand has just released its latest consent data and it shows that the number of new dwellings consented nationally was 2,973 in November 2016.

This was a 5% increase on November 2015 and an 11 year high.

However, once seasonally adjusted, the number of new consents fell by 9.2% as compared to October 2016.

Further, Statistics New Zealand noted that the trend was showing signs of decreasing after reaching a 12-year high in mid-2016.

Statistics New Zealand business indicators manager Melissa McKenzie said that Auckland was the region that consented the most new dwellings in November (1,156).

“Almost 40% of the new homes consented were in Auckland. The Waitemata and Gulf, Albert-Eden-Roskill, and Manukau wards had the biggest increases in the Auckland region.”

The Auckland region was followed by Canterbury (459) and the Waikato (340).

Over the year ending November 2016, 30,303 new dwellings were consented in New Zealand, which was a year-on-year increase of 13%.

In Auckland, 10,137 new dwellings were consented over the year, which was also a year-on-year increase of 13%.

But while new consent numbers might be up, economists are concerned that the overall trend in consent issuance has been slowing.

ASB senior economist Jane Turner said construction activity remains a key driving force of New Zealand’s economic growth. 

While November residential consent issuance fell due to earthquake disruption, the trend had already been slowing which is of some concern, she said.

“Strong population growth over the past few years has lifted housing demand right across the country, and we expected momentum to continue at least for another year.”

While Auckland consents lifted 6%, according to ASB’s seasonally-adjusted estimate, it was on the back of a large chunk of apartment and retirement village unit consents, she said.

“The trend in Auckland stand-alone housing consents appears to be slowing, a sign that developers are starting to respond with more high-density solutions in Auckland.”

Westpac senior economist Satish Ranchhod was more worried about the situation in Auckland.

He said that with dwelling consent issuance in Auckland up 6% in November, it took the total number of new dwellings consented over the past year to just over 10,100.

“This is still below the level Auckland needs in light of the region’s strong population growth and existing housing shortage.

“More concerning, the trend in dwelling consent issuance in Auckland appears to have flattened off.”

It is generally estimated that Auckland needs between 11,000 and 13,000 new dwellings built every year for the next decade to address its shortage and keep up with demand.

Around the rest of the country, consents were down in Wellington in November, but this was said to be due to the Kaikoura earthquake that month.

In Canterbury, consent issuance picked up in November, but it is expected to trend down as the Christchurch residential rebuild winds up.

« Before you renovateFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com