There was a substantial drop in the number of new homes completed in Auckland during July.
Auckland Council issued 697 Code Compliance Certificates (CCCs) for new dwellings in July, down 49% from the 1371 that were issued in June and down 38% from the 1118 that were issued in July last year.
CCCs are the most accurate indicator of new housing supply because they are issued when a building is completed, unlike building consents which are issued before construction starts.
However it's not possible to say if the drop in CCCs issued in July was the start of a trend because the monthly numbers have been unusually volatile this year due to the flow-on effects of the COVID-19 pandemic restrictions.
Monthly CCC numbers in Auckland rose steadily at the start of the year to hit 1344 in March, then dropped down to 910 in April and 691 in May. They then climbed back up to 1371 in June, and dipped again to 697 in July (refer graph below).
CCC issuance can also be particularly volatile in Auckland because of the higher numbers of large multi-unit dwelling complexes such as apartments being built, and these numbers can vary significantly from month to month.
Over the 12 months to the end of July, CCCs were issued for 13,932 in Auckland, up 31% compared to the 12 months to July last year.
Building consents for new dwellings in Auckland have continued to climb strongly over the three months since Level 4 lockdown restrictions ended in April, rising from 894 in April to 1367 in May, 1439 in June and 1569 in July. This suggests developers remain reasonably optimistic about the state of the region's residential property market.
The above graph is for new residential CCCs only.
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