The record run of new homes being built in Auckland continued in November, according to the latest figures from Auckland Council.
Auckland Council issued 1925 Code Compliance Certificates (CCCs) for new dwellings in November, which was beaten only by the 1949 issued in October and the 1927 issued in September.
The three months from September to November were the only time that the number of CCCs issued for new dwellings has been above 1800 in any month of the year since Auckland Council began compiling the figures in 2013.
CCCs are issued when a building is completed and provide the most accurate indication of new housing supply.
The Auckland Council figures include CCCs issued within the Auckland region by Kainga Ora.
While the figures for the month of November were just shy of an all time high, the 18,002 CCCs issued for the 12 months ended November were an all time high for any 12 month period since the Council first collated those figures in December 2013.
Residential construction in Auckland has been booming, with the rolling 12 month total increasing for 16 consecutive months since August 2022.
The 18,002 new homes completed in the year to November 2023 was up 30% compared to the previous 12 months.
However while the number of new homes being completed in Auckland has been going gangbusters, the number of building consents issued for new dwellings in the region has been steadily declining since it peaked in March 2022.
In November this year just 1164 consents were issued for new homes in Auckland.
That suggests new home completions in the region will likely start to decline this year, as existing projects are completed and fewer new projects are started.
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49 Comments
Wonder what happens to the tradies and developers as they finish new builds. If there are way less new projects to start... i assume they are off overseas leaving us with less skills for the next boom.
And so the cycle continues.
No.. There is plenty of work going on all over the country.... Any half decent builder has a job for life.
No there isn't. Not where I live anyway.
Is that you Mike Moore
Pick up a cheap section and build "spec" homes. By the time they are done the market will be peaking.
Where are these "cheap" sections? Most I look at are slip or flood prone nightmares and the owner wants $300-500k+ and often gets it
Plenty in Sth Island and subdivision cost and dealing with councils etc way easier. Return on money invested is better too.
One reason why ACT wants to close up the companies register, to help unscrupulous directors rip people off and not have to worry about an angry mob at their place of residence.
All the tradies I know have a list a mile long for cash jobs currently so perhaps the demand is still there, but the ability to find a tradie who can do the job for cheaper is far greater than a year ago
Once the land is purchased, design and consents completed construction is started you are committed unless you run out of money. Lots of developments will be delivered to the limited pool of buyers in 2024.Lets see what happens.
18,000 new builds in Auckland over the last 12 month x 3 people per dwelling = accommodation for an additional 54,000 people. 127,000 additional immigrants nationally, 40% of which are staying in Auckland = 51,000 looking for accommodation. Close figures.
Good in theory. I think a lot of those completions will be spoken for such as fhb and KO housing. Not for migrants
Yes but those FHBs and KO will not be living in cars now..... there will be ongoing reconstruction work in Hawkes Bay... but for builders with teams in AKL not so good
Yep they could be in an existing rental or with whanua
Those immigrants are going 10x to a house.
Housing glut building much further in 2024. Still a heap in West Auck around me, unsold for months now.......
Not likely, decent houses are getting harder and harder to find. Sure if its a rabbit warren out west you want, not a problem.
40% of Migrants move to Auckland? Sounds optimistic. Closer to double that I'd say.
With a picture like that there is certainly a big difference between a "House" and a "Dwelling" these days. It used to be all "Houses" not any more. There is total rubbish being built now which is really distorting the "Housing" market in terms of prices.
Gated community, let's just hope the baddies aren't in there
NZ has seen many rubbish houses being bult in the last few decades, not just now. I am not just talking about the size (see many North-Korea-looking Auckland downtown apartments, as an example), but especially quality, which applies equally to good size family houses too.
The Auckland Council figures include CCCs issued within the Auckland region by Kainga Ora.
What's the % of KO builds?
About 7%, although that’s the number built on KO land, some of that will be private development done in KO’s redevelopment areas like Mt Roskill and Tamaki.
So in terms of social housing, perhaps about 5%?
The vast majority of them are townhouses.
kiwis/investors prefer houses, not townhouses and definitely not apartments
There is a severe shortage of 'good' houses in Auckland + now shipping costs are increasing
https://www.rnz.co.nz/news/country/507265/wood-industry-concerned-red-s…
Agreed what is being built now to fit with what is "Affordable" will be slums in 10 years time. Pretty shocking it has come to this in New Zealand, all this land and pine trees growing out of our arses and you get to live in a million dollar townhouse.
Location location location. A townhouse in a nice central suburb will never be a slum, and a big detached house in a crap suburb will always be a slum.
Spot on Jimbo, and not everyone wants a whole lot of land to look after. And after a time lag good quality densification usually brings other benefits such as improved amenities, transport etc. That is if planners are planning….
Ever heard of gentrification?
Who would want to own or live in one of these boxes?
There's lots of them not far from where I live - no parking, jammed together, the streets become one-way because there's cars parked either side....no thanks. Better off buying an old house with a bit of dirt around it and doing a reno.
And then there's the body corporate dramas that go on. I owned a factory in West Auck for many years, but suddenly a couple of new owners arrived on the scene, took over the body corporate and started motoring through the $140,000 we had in the kitty. I got out, coincidentally just before Covid, so it was a blessing in disguise.
Big generalisations. Sure a decent number are like that, even the majority. But far from all.
And as others have said, it’s the only realistic option for even many above middle income FHBs.
Lots of people on here knocking terraced housing like its a choice. Many people struggle to afford housing and turning your nose up at terraced housing is not an option. Most FHB's cannot afford a lawn, its a luxury.
Exactly
Go down to Hobsonville and check out the washing on the balconies, and hanging outside the windows....just like Hong Kong. That's if you can navigate your way through the streets with all the parked cars.
So what do you suggest? People rent for ever rather than buy?
It's a personal choice, I've owned 2 factories, both in body corporates, I'd never do it again.
Dealing with people....OMG!!!!! Scouting around for a dump in quite a good street is always an option, checking out the mortgagee sales is another, risky, but can be a big winner. I've done it.
Looking at some of the "terraced housing" as it's called at Westgate, I'm pretty sure that in 10 years time that's where you won't want to be.
I'm not sure that really addresses the issue - it's like suggesting that everyone just get a job with an above-average wage. The problem is there are not enough stand-alone houses for the population, so however much you suggest everyone pull their socks up, there will be a huge number of people who just don't have that option.
Or looked at another way, NZ (well, Auckland) has crossed a population threshold where it is neither possible nor desirable for everyone to live in a detached house. Although contrary to our traditional psyche, we have to think forward not backwards. Most of the rest of the world lives this way and now we need to also. Done right there can be many benefits, not just in reduced urban sprawl.
Sure. if your household is earning 250-300k plus 😂
Maybe a commute is an option, have a look at Warkworth, used to be a farming community, now pretty much a suburb of Auckland.
Sure if both partners can get work up there or on the Shore at a stretch. But count that out if your job is on the south side of the bridge.
Spoken like a self entitled boomer.
"Hey why don't you buy that million plus $ detached house like I did when I was a nipper - you should just be a serf and rent for life instead of buying that shitbox townhouse. Don't you know they are future slums?"
Is there a boomer version of mansplaining? 😅
"Go down to Hobsonville and check out the washing on the balconies, and hanging outside the windows....just like Hong Kong."
Absolutely ridiculous comment. This just proves you've never been to Hong Kong or Hobsonville.
It sounds to me like you're worried nobody will want to buy your "100% investment guaranteed amazing profit" on the flood plains out in the wop wops as they will be very happy to live closer to the action in a well designed terraced house...
I had the same thought @agnostium, Hobsonville is a wonderful thriving community. People who live there overall are very happy with their warm dry housing, all within walking distance (because - high intensity housing has its benefits) of parks, playgrounds, coastal walks, supermarkets, restaurants, schools, public transport. Hardly a third world disaster that anti-density campaigners go on about. Would rather a nice Hobsonville townhouse than my own aging, money guzzling house and garden in the middle of nowhere where you can't walk anywhere so 2 cars a must.
Top comment.
Not so sure about the warm dry housing.. A lot of those developments are ticking time bombs. Massive problems starting to surface with regard to poor workmanship and corner cutting for cost savings. Most people are happily unaware at preset, but there are a growing number of claims out there waiting to be settled.
I certainly have been to Hong Kong - and Hobsonville....I used to live in West Harbour. I drove through Hobby a few weeks ago and navigating my way through all the parked cars wasn't that easy. I was one of the very first to build in West Harbour, I stuck my neck out a long way and bought a couple of sections on the waterfront when some were saying nothing would ever happen there.
What flood plains in the wop wops? I've recently bought land in Riverhead...now that's one place where there's guaranteed capital gain. Elevated, golf course, road widening on SH16 and Riverhead/Coatesville Highway, between SH1 & SH16, 422 room retirement village approved, a stone's throw from Westgate shopping centre, new subdivisions planned, on the outskirts of NZ's biggest city, next to Coatesville, NZ's most expensive suburb, popular pub, and a Fletchers consortium want to build 1,800 houses.
And you don't need to be wealthy to buy in Riverhead. Who wants to get rich? Not many here, they'd sooner whine about how bad it all is.
It's hard work building shoe-boxes for migrants, but thanks to policy and increasing poverty, intensification is coming to your neighborhood.
I heard an interesting story about Hobsonville and all its parked cars a couple of days ago.
There was a house fire, but the fire brigade couldn't get to it because the street was too narrow...... parked cars.
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