The number of new homes completed in Auckland remained steady in August, in spite of the region being in a level 4 lockdown for half the month.
Auckland Council figures show 1173 new dwellings received their Code Compliance Certificates in August, indicating they were completed to Building Code standards.
That was up very slightly from the 1147 completed in July, but down 14.8% compared to August last year.
However the monthly figures in Auckland can be quite volatile because they can be affected by the timing of the completion of large multi-unit developments such as apartment blocks.
Looking at the figures on a rolling 12 month average basis, shows that just under 1200 new dwellings are being completed in Auckland each month, up by about a third compared to the same time last year.
However the figures also suggest the strong growth in new completions evident in Auckland over the last several years has now flattened off, and the numbers may even start to decline slightly.
The big unknown is what effect the latest lockdown has had on building completions.
It may be that August's figures would have been higher if it was not for the lockdown, which could cause a jump in completions over the next few months as restrictions are progressively eased and the construction industry catches up with work in progress.
But we will have to wait and see.
The graph below shows the number of Code Compliance Certificates issued each month for new dwellings in Auckland since the beginning of 2019.
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12 Comments
We need numbers of new homes completed to escalate.
There's still a huge unsatisfied demand for houses in Auckland.
TTP
Stating the obvious.
There's certaintly a "huge unsatisfied demand for houses" at affordable prices, that's for sure!
In NZ they are not affordable and offer poor value for money.
With the economy under the sword from one day to the next, and corresponding uncertainties in the job market, let's see who is brave enough to dive in.
None but the brave deserves the fair
Does Auckland really need more houses and more and more people ? Its turning into a hell hole up there and I managed to get out just in time. The whole housing debacle could be sorted out pretty quick if there was an immigration policy that was adhered to.
TTP Speaks The Truth!!!
Inflation is going to skyrocket with the cost-push inflation drivers from the higher shipping costs i.e. Baltic Exchange Dry Index (BDI).
Housing is the default choice for hedging when it comes to preserving the purchasing power of your currency. People without houses will be the new poorer working poor.
Auckland Housing FTW.
The supply side of the equation might suggest that things may slow down for a while, but who knows in this market? I'm more concerned about the quality of the new builds. NZ's homebuilding history is littered with poor quality issues over the decades, beginning in the 1970's with the cheap spec home boom right up to the leaky homes saga which has destroyed as many lives as it has buildings. I remember renting what we used to call the 'cardboard house' which creaked & cracked when we walked or when temperatures changed. And a flat we had in Auckland many years ago had massive damp & mold issues (and very cold in the winter) & this was many years before leaky homes reared its ugly head. C'mon boys. Build better homes.
So near enough 20,000 houses built in AK since lockdown. That tipping point can’t be too far off.
Yep, not far away. Some time mid to late next year.
Increasingly seeing new 2 bedroom townhouses, in low value locations in Auckland, priced at 850K or more. Crazy.
Especially once mortgage rates rise another 1.0% or more, the sales on these places is going to start to drop away, and they won't get built. Especially if DTI's are introduced.
Then not only will FHB market fall away, but so will investors.
I thought the high prices and shortages would hit the industry much harder. Was wrong about that so far.
Issues still yet to hit. Spoke with my brother in law this morning. He has lost 3 jobs in the last fortnight due to inability to source materials until December. He said it is the first time in 5 years they will be off the tools for a week (planned holidays excepted.)
Off the tools doesn't mean less demand from buyers but sure does mean lower CCCs issued in the short term.
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