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The number of new homes completed in Auckland in June was up 22% year-on-year, Auckland Council figures show

The number of new homes completed in Auckland in June was up 22% year-on-year, Auckland Council figures show

There was a strong recovery in the number of new homes completed in Auckland in June.

Auckland Council issued 1371 Code Compliance Certificates (CCCs) for new dwellings in June, up 22% on the 1125 issued in June last year.

Council records show that 1344 CCCs were issued in March but numbers then fell away sharply, to 910 in April and 691 in May, suggesting the decline in CCCs being issued lagged the COVID-19  Level 4 lockdown by a month.

In the 12 months to the end of June, 14,353 new CCCs were issued in Auckland, up 42% on the 10,080 issued in the 12 months to June last year.

CCCs are issued when a building is completed and provide the best measure of new housing supply, while building consents are issued before construction commences, so are mainly a measure of building intentions.

Although the number of residential dwelling consents issued in Auckland also took a dip during lockdown, dropping from 1187 in March to 894 in April, they recovered quickly, rising to 1367 in May and 1439 in June.

The strong rebound in both CCCs and consents issued since the Level 4 lockdown and the current strength of Auckland's residential property market, suggests residential construction activity in the region is likely to remain buoyant well into next year.

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15 Comments

Wind taken out of the Economy's sails, all time low interest rates, extended mortgage holidays and wage subsidies clubbed with an increase in housing stock, looks like the perfect storm is brewing on the horizon.

the US saving increased unprecedentedly during the past months.

if the savings were unleashed in later dates, big things would happen.

it is President Xi by the way.

Wishful thinking.

TTP

When simply shutting our borders to non-residents alone puts several key sectors and much of our economy on these life-support measures, it's clear that the pandemic is just a trigger, not the cause of this upheaval.

Across the Tasman, an economist at KPMG estimates that the Australian economy risks losing $117 billion of economic growth by 2030 due to dwindling migration numbers over the next two years. He insists governments like theirs in the West need to do more post-Covid to lure yet more international students into their country.
Evidently we don't fish out of the same talent pool of international candidates that the Aussie universities and businesses do, so no point in us trying anything there.

Damm shame the steady supply of eternal debt servicing slaves and voluntary scape goats in pursuit of residence via name sake education schemes has been abruptly cut (Won't happen even if all those anti immigration politicians reversed their stance and stood with welcoming placards at the airports).

Nevertheless, the repercussions take time to pan out given all the current stimulus (at the cost of tax payers of course). People will helplessly watch as the equity on their properties dwindle. Witnessed it first hand back in 2010 (in the US).

But then this was something that was going to eventually happen, given the current state of collective madness across the real estate sector, propped up by cheap credit in anticipation that the debt was serviceable by letting out properties at exorbitant prices to an "underclass" of people misfortunate enough to not have a deposit forcing them into flat-mating.

Such is the sorry state, that there are a lot of instances where pensioners are being forced to huddle with students as flatmates (in AKL thanks to the high rents). The best mockery was when the advice given to First Home Owners with low deposits, was to have flatmates / home-stays by mortgage brokers to rack up even more massive debt. And, the banks were only too glad to sanction such loans.

Interesting times. Remember the Y2k scare? Here in Nelson we got a small flood of wealthy but somewhat batty Americans moving here because some clever bugger caused a scare about the world economy collapsing when the computers stopped working.

It seems there is a similar exodus beginning with people fleeing disease ridden cities for the suburbs and countryside. In New York City they are also fleeing the Democrat "Tax the Rich" crowd too, of course. Both of these could trigger worldwide exodus. Let alone the "civil unrest" (ie, arson, murder and looting) that will happen before and after the US elections, whoever wins.

https://dnyuz.com/2020/08/20/movers-in-n-y-c-are-so-busy-theyre-turning-...

https://www.zerohedge.com/political/another-nyc-war-zone-weekend-over-30...

https://www.zerohedge.com/markets/gun-and-ammo-sales-surge-america-trans...

https://www.zerohedge.com/political/portland-blm-revolutionaries-bring-g...

Most government profit and loss projections are built on growth, which without it would expose their failings. As revenue is unlikely to increase anytime soon, it will be time to focus on the costs. And god help us, this might lead to better efficiency rather than bloated bureacracy.

Fat cat salaries will disappear shortly, as both government and public companies struggle with the high cost centres they have created. Its going to be lovely to watch, as most receiving these fat cat salaries are hired yes people, that deliver very little value.

this might lead to better efficiency rather than bloated bureacracy

In 2020, WEF ranks NZ's public sector 9th in the world for spending efficiency while IMD puts New Zealand's government efficiency at 8th place in its global competitiveness report and business efficiency at 30th.

I see a lot of Aucklanders spewing their hatred towards Wellington and its bureaucracy but had absolutely no qualms paying $775k to Watercare's CEO in 2019 (up from $605 in 2016) for doing absolutely nothing for the oncoming water crisis.

Another 86 staff employed directly or indirectly made over 250k, most of them work at the Super City's CCOs.

775K is small change compared to usually what a fat cat's trusted and dependable "buddy" contractors get paid for inept work whilst incomplete projects get carried over to the next half of the year.

Lets see how low developers will go to keep houses selling and stay in businesses till next upturn.
I am picking they will find ways to reduce new builds by at least 20 percent to remain in business and land developers that are in strong position will be able to do similar but other developers will be forced into receivership sales over next 12-24months if unable to keep cash flowing and debt in control unless banks/lenders decide to look the other way ?????

The government has put aside $350m in a special fund to underwrite stalled or 'at-risk' developments.
Not all of this is new funding: $250m of this taxpayer money is just funding redirected from last year's Kiwibuild 'progressive home ownership' appropriation.

Big over-supply coming?

Gotta house the millions of returning rich kiwis...

Over supply and falling demand ( by which I refer to buyers with the cash) = ?

I'd add "falling ozzie house prices" to that list, since this could draw some buyers from NZ if a travel bubble or good enough vaccine ever happens.
It's a complex situation!

Days to the General Election: 21
See Party Policies here. Party Lists here.