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Housing consents fall in December for first time since June
Seasonally adjusted housing consents fell 2.4% in December to 1,382, their first fall since June last year, Stats NZ said. Excluding apartments, seasonally adjusted consents also fell 1.4% to 1,310, their first fall since May.
The weaker building figures tally with data published yesterday from the Reserve Bank of only weak lending growth to households and a slump in lending to businesses.
Here is the release from Stats NZ:
The trend for the number of new homes authorised (excluding apartments) continued to rise in December 2009, Statistics New Zealand said today. This rise in trend came despite a fall of 1.4 percent in the seasonally adjusted number in December 2009.
"While the seasonally adjusted number has dropped slightly this month, it follows six months of increases and the series is still trending upwards," business statistics manager Louise Holmes-Oliver said.
The trend for new housing has been increasing since March 2009, although the level is still considerably lower than it was before the middle of 2007. The trend level is now similar to the levels seen in mid-2008.
Building consents were issued for 1,260 new housing units (excluding apartments) in December 2009. Consents were issued for 93 new apartment units.
The value of residential building consents was $494 million, an increase of 12 percent compared with December 2008, while the value of non-residential building consents was $404 million, an increase of 5.6 percent.
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"In 2009, consents were issued for 14,425 new homes, including apartments. This is the lowest number issued for a calendar year since the series began in 1966 and is due to very low numbers at the beginning of the year," Mrs Holmes-Oliver said.
The value of consents issued for residential buildings fell 18 percent in the year ended December 2009, while the value for non-residential buildings was flat, up 0.2 percent, compared with the December 2008 year.
4 Comments
It should not have been
It should not have been such a surprise to me that house prices have not fallen much in NZ even in the face of a global economic crises, record debt levels and record low affordability. Simply put the existing stock of house owners have far to much faith in the durability and strength of land and houses as an asset class to hold for the long term. They just won't sell at a loss. After all prices recovered and took off in the early 90's and in the early 2000's why should that not happen again in the 2010's? IMO it won't because there is no one left to buy at current prices. Prices can be held up by existing owners shuffelling houses between them and that can continue for a long time. Eventually those houses will be sold to new buyers and they will only be able to pay so much. Those buyers will set much more realistic prices for houses. When? who knows...
Simon, "Those buyers will set
Simon,
"Those buyers will set much more realistic prices for houses. When? who knows"¦"
When companies are struggling or going bust at a higher rate and unemployment follows suit, then the income streams won't be there anymore to support this stupid bidding war that went on the last decade (or two).
As the world population increases
As the world population increases and the asian millionire factor keeps churning out millionaires and raising peoples expectation, while the developed world is geting overcrowded and hectic, the rise of the number of people in the world who want quality of life, makes me think that if only 5 to 10 thousand out af all these people wanted to come to NZ then this will underpin our property values.
Do I think this is good? Not sure as yet, given our smal opulation sze, immigration has a huge impact on the property demand drivers.
Simon and ctnz ... As
Simon and ctnz ... As supertramp once sung "dreamer your nothing but a dreamer"... What you fail to realise is people wont sell why would you ? you can move and rent as i have done and still rent my house out.. i was going to build a new home but even a milestone house at 895 per sqm on an 100k section is utter rubbish compared to my old house .. the value in second hand homes is unbelievable... price one your selves and see... people from europe are just laughing at the cheapness of houses . and snapping them up as with other non residents ... kiwis are to be tenants in there own land sad but true. its wages that need to go up or tax changes ie make people only start paying tax after $12000 .. this is how affordabillity will improve .. power prices and food ,, are all out of step with income too do you believe these will fall if people cant afford to pay????? i think not.