There was a jump in the number of new homes completed in Auckland in August, with Auckland Council issuing Code Compliance Certificates (CCCs) for 1320 new dwellings.
That was the seventh highest number of CCCs issued for new dwellings in the Auckland region in any month of the year since current records began in January 2013.
It was also up by a third compared to the 990 CCCs issued for new dwellings in the region in August 2019 before the Covid pandemic disrupted the building industry (see graph below).
CCCs are issued when a building is completed and are therefore the most accurate measure of new housing supply, unlike building consents which are usually issued before building work commences.
However on an annual basis, 13,021 new dwellings were completed in the 12 months to the end of August, down 8.2% compared to the 12 months to the end of August last year.
So far the figures suggest that the number of new homes being built in Auckland has dropped back by between 8% and 11% from last year's peak and seems to be relatively stable at around that level.
But so far there has not been the substantial downturn in post-pandemic building completions that some had been expecting, although signs of stress in the industry are showing up in the length of time it is taking for projects to be completed.
Up until the middle of this year, the length of time between a new dwelling receiving its building consent and it being signed off with a Code Compliance Certificate was less than two years for between 85% and 89% of projects.
But by August this year that figure had slipped back to 75%, as more projects took longer than two years to complete.
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17 Comments
Who will buy?
Plenty of willing buyers out there, just not at current prices.
Money hungry specuvultures
There's an old saying. Charge what the market can bear. Someone willing to pay the sellers asking price or close to it. Price too high then no buyers.
... the borders are open ... some bloody migrant might afford them ...
There are a lot of new houses being built and CCC issued but is someone looking into what quality of houses we are building in the country?
80% of new houses build in last 20 years need repairs and major updates after 10 years of living. This isn't a quality build for a developed country.
Matchbox Ghetto .............future of Auckland
Interesting. What evidence do you have for this?
Technically they're not wrong, every building needs maintenance, and the most common anniversary for that is 10 years.
80%? I don't think I've seen that number before.. where is that stat from?
If completed home have been sold before, good or.....
Let’s see what the CCC figures are looking like this time next year. I expect they will be down at least 25%.
Lots of new projects are being cancelled, or at least deferred. Pre-sales really struggling, and many projects won’t go ahead without those.
But lots of projects in the middle of construction so the CCC numbers will be robust until April/ May 2023…
With the current high levels of CCCs, likely to continue until autumn, that will be boosting the supply of rental housing. Good thing in terms of rental inflation.
Ka pai, great to hear, lots of happy families moving in.
Anyone who thinks building products are getting cheaper may need to think again - this is just out from Australia.
"CoreLogic’s latest Cordell Construction Cost Index (CCCI) is out, with national residential construction costs increasing at a record rate in the year to September 2022.
Residential construction costs increased by 11.0% over the 12 months to September, exceeding the 10% annual rise recorded over the 12 months ending June 2022.
The quarterly figure of 4.7% was also higher than the previous quarterly figure of 2.4% and above the 3.8% surge recorded over the three months to September 2021"
Thanks for posting. Along the lines of what I was saying the other day.
'But so far there has not been the substantial downturn in post-pandemic building completions that some had been expecting....'
Who expected this?
It's way too early for that effect to take place.
Maybe in 6 months time...
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