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New homes are being consented at a record pace suggesting no slowdown in supply

Property / news
New homes are being consented at a record pace suggesting no slowdown in supply
Man building a shed

The number of new homes being consented continues at a cracking pace, especially in Auckland.

The latest figures from Statistics NZ show 4483 new dwellings were consented in September, up 24.4% compared to September last year, and barely changed from the 4490 dwellings consented in August.

In the 12 months to September this year a record 47,331 new dwellings were consented throughout the country, up by almost 10,000 (25.4%) compared to the year to September 2020.

Auckland continues to dominate new residential development activity, with consents for 19,886 new homes issued in the year to September, up 28.5% compared to the year to September 2020.

That means Auckland accounted for 42% of all dwelling consents issued throughout the country in the year to September.

While the national figures show there was no slowdown in consenting activity over August and September, there was a drop in the number of consents issued in Auckland in September. This suggests the lockdowns in place in Auckland over the last two months could have acted as a handbrake on consenting activity.

However that may also mean there could be a bounce back in Auckland consent numbers as lockdown restrictions in the region are eased.

The latest consent figures point to growing evidence suggesting that the rapid increase in the number of new homes being built coupled with a slowdown in population growth due to a lack of immigration, is tipping the supply and demand for housing back into balance, especially in Auckland.

Across the country, the percentage increase in new homes being consented in the year to September compared to the previous 12 months was in double digits in all regions except Tasman, Nelson and Marlborough.

The total value of residential building work consented in the year to September 2021 (including structural alteration work) was $20.1 billion, up 26.4% compared to the year to September 2020.

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3 Comments

Rather quiet comment section for this story...!

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Calm before the storm of a building slump in 2022.

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Consents for what though? $2 mill plus in Long Bay to $1 mill plus in the styx. Hardly affordable housing. Then we have knock down 1 build 2. So instant halving. Not to mention all the emergency housing motley crue than will need rehousing once the border opens. Then let’s look at the increase in population. In other words the historical comparison is comparing apples to oranges. The trend is set but still way short of what is needed. In other words the end is not nigh and house prices will not collapse.

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