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Second lowest June year level of building consents
House building increased 3.5% in June on a seasonally adjusted basis, Statistics New Zealand says, following a 9.5% fall in May.
Consents were issued for 1,373 new dwellings including 57 apartments in June.
For the June 2010 year, 15,384 new housing units, excluding apartments, were authorised. Although that's a 25% rise versus the June 2009 year, it's the second lowest annual June year total since Statistics New Zealand began its series in 1991. The June 2009 year was the lowest.
"In the June 2010 year, 783 new apartment units were authorised, which is the lowest since 1994," Statistics New Zealand's business statistics manager Louise Holmes-Oliver said.
The monthly trend for the number of new housing units authorised, excluding apartments, has been increasing since early 2009, but the level remains 31% down on the June 2007 peak.
ASB economist Jane Turner said the Reserve Bank had noted a weaker net migration outlook in yesterday’s Official Cash Rate announcement. It was likely therefore to have incorporated a weaker outlook for housing construction in recent forecasts.
"Indeed, in light of the slightly softer growth outlook the Reserve Bank noted that the pace and extent of future policy tightening is likely to be more gradual than expected. Nonetheless, the New Zealand economy is still on track for a modestly paced recovery. In contrast to previous cycles, this recovery is set to be export led, while the household sector (including the residential construction industry) is likely to remain relatively subdued."
Meanwhile, Statistics New Zealand said the value of dwelling alterations and additions was NZ$109 million in June, the highest monthly figure since the series began in January 1991.
The value of residential building consents was NZ$508 million, 32% higher than June 2009.
No charts yet
The value of non-residential building consents was down 26% for the month of June - versus June 2009 - to NZ$228 million. The biggest falls came in education buildings down NZ$39 million, storage buildings down NZ$32 million and offices and administration buildings, down NZ$25 million.
The largest increase was for shops, restaurants, and taverns, which increased NZ$13 million.
30 Comments
So come on losers. How are
So come on losers. How are you going to spin this proof into negative comments about how property is bad.
If ya can't sell it, don't
If ya can't sell it, don't build it!
"...it's the second lowest annual June year total since Statistics New Zealand began its series in 1991. The June 2009 year was the lowest".
Too easy Mr Man......
Too easy Mr Man...... everyone is doing alterations hoping to gain an edge in selling in a sliding market..... add a room ..put a window in the toilet with a picture of the sea behind it.... you know that sort of thing.
Where I come from in the
Where I come from in the North Island it is cheaper to build than buy second hand. It does not bode well for existing homes. That is why they are devaluing.
Sorry to be picky, could you
Sorry to be picky, could you back this up with some figures. Im genuinely interested as, where I am it is still plenty expensive to build through any of the main housing companies, typically 1200-1400 /sq for a 3B double garage inc floor coverings but exc landscaping fencing driveways etc. 160sq @ 1400 add that to a 700sq land for 150k = 374k. Can currently buy a similar house a off distressed seller for low 300s.
Can currently buy a similar
Can currently buy a similar house a off distressed seller for low 300s.
Hey GoFish, I am not going to dispute your claim because it's probably true, but is the existing property worth it? Most houses in NZ are terrible deals in that they are poorly built from low quality materials and have been badly maintained. The wife and I built our own house (-with the aid of her brother who is a builder-) because it was the only way we could be sure we wouldn't get an awful piece of crap like most of the ones on the market.
Good for you Duncan, I would
Good for you Duncan, I would much prefer to build and employ the builder directly, however it is currently prohibitively expensive. Housing companys get materials at much better rates than individual builders and they tend to employ the builders on sq meter rates. The up shot is the builder rushes the job and cuts the odd corner. The resultant house is structurally sound and complyant but the finishing can be poor. Im excluding the stucco leaky building variant as we seem to only have had brick clones built in the last 5 years around here.
Ball park.. what did it cost you to build, employing builder direct?
Dunno about Duncan but when I
Dunno about Duncan but when I had a house built recently on my own my final tally showed a saving of around 35% all up and it was done the right way not the cheap arse way. Prolly could of saved more but I upgraded some of the options part of the way thru when I saw how much I was saving over all.
That sounds about right,
That sounds about right, mick. It's that 35% that the mass builder would have got in their pocket. I have no probs with that, as a lot of people are put off by the thought of doing the project. But it's worth it, as you know.
Tell me about it! Had a
Tell me about it! Had a pre-purchase inspection done on my MIL's place...oh my god the problems caused by a crap build to being with (in teh 70's) and lack of maintenance since. We can certainly build chaper than fixing the problems. Now just to convince my MIL that her house is a lemon!
Do the project yourself (
Do the project yourself ( order, negotiate, buy, hire the subbies etc. not the hammer work!) and it can work out to about $1000 psm. The mass builders, until recently, have been adding their margin of between $50k to $100k per house, depending on size, of course. So the sums are about equal for you 160sm 3 bedder.
But it will be a shit box
But it will be a shit box compared with a new one. If he is distressed he has not maintained it for sure.
Im, assuming there are
Im, assuming there are several "Anonymous" comenters on the site. Would it be asking too much for one or all of you to type a Name in the name box?
Anon. is the better option
Anon. is the better option until Bernie sorts out his acreditation. Hijacking is a problem. Cheers.
That's absolutely right,
That's absolutely right, lovey.
More houses built. More
More houses built. More housing supply. Less price pressure as a result if you believe in the housing shortage myth.
OK, I don't get this. "ASB
OK, I don't get this.
"ASB economist Jane Turner said the Reserve Bank had noted a weaker net migration outlook in yesterday’s Official Cash Rate announcement. It was likely therefore to have incorporated a weaker outlook for housing construction in recent forecasts."
So building is to weaken with little immigration. But I thouhgt we had a big housing shortage regardless of what was happening with migration?
If we DID have a big housing shortage, even if migration was weak, there would be plenty of demand for houses, so housing construction would still be strong.
Fact is, WE DON"T HAVE A HOUSING SHORTAGE
It'll take time. New building
It'll take time. New building will recover first (driven by those who have money to be able to afford the luxury of a brand new home), followed by the "second-hand" market - by 2012 the inhabitants of the www.doomandgloom.co.nz will be complaining again about the unaffordability of housing, although the prices for the latter by then will be at a new "unaffordable" level, along with interest (mortgage) rates peaking about 2.5 to 3 % higher than where they are now. The cycling will continue, many / the majority will see it, some will deny it again and predict another 30% (40%? 50%?) "crash"... In the meantime, life goes on, the economy is (slowly) recovering and things will eventually get back on track... to lead to the next downturn in around 2015. "But it's different this time!", - you are saying. I've heard it at least 5 times before!...
When house prices are such
When house prices are such that anybody with an average income can comfortably afford to buy one, then there will be few complaints about the cost of housing.
It's only now, while they're still priced far above a sane level that we can say with 100% justification that a house is unaffordable by those on average incomes (and by anybody who needs to borrow more than they can repay to purchase it).
"More households are
"More households are choosing to live in larger units, for example youngsters delaying flatting given very high youth unemployment. This has dampened demand for housing despite strong population growth in recent years. As a result there is no housing shortage."
Gibson..herald
New normal is here!
As has been stated many times
As has been stated many times before, the fact is that there is no property shortage.
anon- why are you sure that
anon- why are you sure that there is no housing shortage? I dont think there is a surplus in the main centres- maybe in the provinces- but how can you be so sure?
Olly, you know as well as we
Olly, you know as well as we do that there is no actual property shortage (much to your dismay and disgust), so you and your fellow property spruikers do everything you can to create and encourage the property shortage myth, because as a PI you believe it's in your best financial interest to do so.
And Olly, how would you
And Olly, how would you respond to this post, which appears to have a bang on take of the situation?
http://www.interest.co.nz/opinion/opinion-rbnz-underestimating-impact-ta...
anon 10.39. Just answer the
anon 10.39. Just answer the question if you can, without climbing it the gutter with personal insults. I am not interested whether there is a surlpus or a shortage- just the plain evidence.
anon 10.43 I appreciate the article and it makes sense but it is only one peson's opnion.What I think is happening is that people cannt be bothered to sell in a flat market unless forced to. As the majority are not forced to sell they simply don't and hence we see that there is a rise in permits to renovate exisiting houses as people upgrade wher they are rather than moving.
Olly the rise in building
Olly the rise in building permits values has nothing to do with people upgrading as they can not be bothered to sell in a flat market,(your opinion) it is to do with the increasing costs of alterations to existing homes/apartments which unfortunately are leaking.Furthermore from Statistics NZ,and more concerning, the annual value including alterations/additions for year end June 2010 for all buildings was 9598million, down 231 million on June 2009 year and substantially down on 12000 million June 2008 year.The flow on effects to our economy are obvious.(my opinion)
The shortage surplus raging
The shortage surplus raging argument is pointless...demand changes with the mood...the slide down into a deeper recession for longer builds the mood of depression in different age groups and it varies across the country. Forget the models and the studies....they are so much BS....experience with past recessions and with PI gives some people a big advantage in this situation...some prosper...others fail.
Currently the regions are heading toward a recession watershed thanks to the property collapse in the regions and the employment pain. Yound people in regions are gloomy about their prospects. They behave accordingly. The opposite might be the case in the big smoke. The regional gloom is likely to worsen and in time it will flow into the big smoke. Then the pain spreads too.
PIs who lack debt and own renters that remain full will have a golden chance to build their portfolio picking up lower priced quality stock. It is a winners win era.
We were poking about the
We were poking about the market late last year and were shown a property in Hatfield Beach. Asking price was " Offers over $725k". "You're kidding ! " Or somehting like that was our response. So no suprise that I see the very same house in the Sunday Times today as ' Hatfield Beach. Sold by Baileys at mortgagee auction. RV$670k, Loan to bank $1.087m ( !!!) sold under the hammer for ...$480k.". That's even too much if you ask me! But there's a buyer for everything, at a price.
"YA CAN'T LOSE WITH PROPERTY,
"YA CAN'T LOSE WITH PROPERTY, MAAAAAAAAAAAATE!!!!11"
lol
What are all you losers going
What are all you losers going to say in 4 months time when you realise the property market has not fallen at all, and in fact is starting to move higher again as summer takes hold and global ecomomic conditions continue to normalise? Will you keep posting on this website for the next 10 years until there is another mild downturn and then once again proclaim how smart you are because you have gone through your whole life renting?
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