December saw a sharp drop in the number of new homes completed in Auckland.
According to Auckland Council figures, Code Compliance Certificates were issued for 1327 new Auckland dwellings in December last year, down by almost a third from the record of more than 1900 a month in each of the previous three months from September to November.
Code Compliance Certificates (CCCs) are issued when a building is completed and are the best indicator of new housing supply, unlike building consents which are issued before construction commences.
Currently there is a widespread expectation that building completions will start trending downwards sharply at some stage, because that is what building consents have done, which means there will be fewer new housing projects getting underway. This will eventually flow through to fewer homes being completed.
However, the sharp decline in CCCs issued in December was not necessarily a sign that the expected long term downturn in new dwelling completions had commenced. That's because the number of CCCs issued usually drops away in December as it's a short month as builders start their Christmas/New Year break.
Although the number of CCCs issued in December dropped by a third compared to the three previous months, the 1327 that were issued was still the highest for the month of December since Auckland Council started collating the figures in 2013.
That means dwelling completions in Auckland are still running at a record high. That's showing up in both the rolling 12 month total of 18,103 for the 12 months December, and the rolling monthly average (over the previous 12 months) of 1509 in December, both of which were all time highs.
So for the the time being at least, record numbers of new homes are being completed in Auckland and the much anticipated downturn in new housing supply remains just over the horizon.
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