The number of new homes completed in Auckland during February fell heavily, both month-on-month and year-on-year.
The latest Auckland Council figures show the Council issued 899 Code Compliance Certificates (CCCs) for new dwellings in February. That's down from 1291 in January (-30.4%), and down even further from 1583 (-43.2%) in February last year.
CCCs are issued when a building is completed and so are the best indicator of actual new housing supply, unlike building consents which are issued before construction starts and are an indicator of potential future supply.
February's numbers show new home completions in Auckland remain on a steady downward track.
The 899 CCCs issued in February this year was the lowest number for the month of February since 2020.
The trend can clearly be seen in the graph below, which shows a steady downward trend since numbers peaked at 1949 in October 2023.
On an annual basis, the number of new homes completed in Auckland has declined from a peak of 19,560 in the 12 months to May last year, to 16,811 in the 12 months to February this year. That's a drop of 14.1%.
The annual number of completions is likely to continue falling in line with the decline in CCCs issued each month.
2 Comments
The May 2024 peak was possibly artificially high because of the completions delayed because of Covid coming to fruitition. The 14% drop from the peak, given the decline in house prices, seems relatively sedate. I think the 16-17,000 is still high compared to the post gfc period. And building consents are still sitting at the 14-16,000 level.
This is enough houses for 43,000 people - which is more than Auckland grew last year.
Price in retreat, and costs remain inflated. Stagflation with an emphasis on Stagger. You would be mad to start a project with the unsold projects waiting for the owners to take the loss, or the banks to pull the trigger. Yet...Southern lakes seems immune.
So another bubble pops and timing is the difference between banking millions, and losing it all. To boot another generation of youth trades look west and never look back. #notwinning
Are we not yet entertained....
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