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: Saturday, July 2nd, 1:15PM

News

rss
Latest Headlines

Covid-19 will impact on building activity

New dwelling consents hit a 45 year high in the year ending February 2020 – but that was before the Covid-19 crisis hit.

Tuesday, March 31st 2020, 3:57PM

by The Landlord

The number of new dwellings consented in the year ending February 2020 was 37,882, which was an 11% increase on the same period in 2019, according to Stats NZ latest data.

Stats NZ construction statistics manager Melissa McKenzie says the number of new homes consented in the February 2020 year was the highest in about 45 years.

This was boosted by a rise in Auckland consents: A total of 14,854 new dwellings were consented in Auckland in the February 2020 year, just over 1,000 more than in the previous February year.

Nationally, there were many more higher-density style homes - such as townhouses, flats, and units – consented.

But McKenzie says that building consent statistics may be affected in the coming months by the current Covid-19 lock-down.

“However, any delay to or cancellation of already consented building plans would be seen in the quarterly value of building work put in place, not in monthly consent statistics.”

ASB senior economist Jane Turner says that prior to the global COVID-19 virus outbreak, the housing market was enjoying a strong upswing which was feeding through into increased building demand.

But looking ahead, March and April consents will be impacted by the Alert Level 4 shut down as most consenting and construction activity will be classified as non-essential, she says.

“We expect a sharp decline in construction activity over Q2 as a result of the lock down (we have pencilled in a 30% quarterly decline in residential investment).”

The longer the shutdown continues the more severe the impact will be on construction output, she says.

“But construction activity should bounce back relatively quickly once the Alert Level is lowered and restrictions are relaxed such that construction activity can resume.

“The various Government support measures will be key in helping businesses remain solvent and ensuring capacity is not lost during the shutdown.”

Looking beyond the near-term volatility, construction demand (for both residential and non-residential activity) will be negatively impacted by economic uncertainty over the coming year, Turner adds.

“The COVID-19 outbreak will result in firms, households and Government reassessing construction needs in future years. 

“In addition, there is risk that shortages of construction materials will limit construction output due to supply chain disruptions from lock downs in New Zealand and abroad.”

Westpac senior economist Satish Ranchhod agrees. He says that while there is a large pipeline of planned work, Covid-19 disruptions will hamper building activity over the coming quarters.

 

Tags: ASB Auckland building consents construction housing market property investment supply Westpac

« Landlords’ plea: don’t unfairly target usUncertainty set to plague 2020’s market »

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
  • OBITUARY: Controversial adviser dies at 80
    “I knew Roger from back in our IAFP days, Roger as head of his company (a competitor to my own) and as a friend. Even after...”
    2 days ago by Winka
  • Conduct laws finally real
    “The draft FSLAA legislation was developed in the final months of the last National Government. CoFI was a natural extension...”
    2 days ago by dcwhyte
  • New Code Committee members finally revealed
    “About as much relevance as having Gordon Ramsay on the Code Committee....”
    2 days ago by Eyeinthesky
  • Conduct laws finally real
    “John just interested as to when National bankrupted the country, maybe before my time?? ...”
    2 days ago by Barbie
  • Conduct laws finally real
    “I'm not normally a Labour supporter Amused. But let's not forget, as far as I am aware, National are still the only party...”
    3 days ago by John Milner
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 5.95 4.85 5.35 5.65
ANZ 5.94 5.95 6.40 6.59
ANZ Blueprint to Build - - - -
ANZ Special - 5.35 5.80 5.99
ASB Bank 5.85 5.35 5.80 5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - 5.35 5.69 5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 5.95 6.29 6.59
BNZ - TotalMoney 5.94 - - -
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
Co-operative Bank - First Home Special - 4.75 - -
Co-operative Bank - Owner Occ 5.85 4.85 5.35 5.65
Co-operative Bank - Standard 5.85 5.35 5.85 6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 ▲5.35 ▲5.85 -
Heartland Bank - Online 4.10 ▲4.90 ▲5.29 ▲5.59
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 ▲5.35 ▲5.80 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 ▲6.19 ▲6.69 ▲6.79
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 ▲5.19 ▲5.69 ▲5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 5.55 6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 ▲5.65 ▲6.09 ▲6.19
SBS Bank Special - ▲5.15 ▲5.59 ▲5.69
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank ▲6.30 ▲5.65 5.79 ▲6.45
TSB Special ▲5.50 ▲4.85 4.99 ▲5.65
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 5.95 6.29 6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - 5.35 5.69 5.99
Median 5.87 5.35 5.77 5.99

Last updated: 1 July 2022 9:33am

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