September saw a jump in the number of new homes completed in Auckland, although the numbers suggest residential construction activity is rolling along the bottom from its recent downturn in the region (see chart below).
Auckland Council issued 1342 Code Compliance Certificates (CCCs) for new dwellings in September, the second highest number in any month so far this year.
CCCs are issued when a building is completed and so are the best indicator of new housing supply, unlike building consents which are issued before construction starts and are an indicator of likely future building activity.
However, the number of new home completions remains down by almost a third (-31%) compared to the October 2023 monthly peak when 1949 CCCs were issued for new dwellings in Auckland.
The latest figures suggest the downturn in residential construction in Auckland has now stabilised, with new dwelling completions averaging just under 1300 a month since May this year.
Even though dwelling completions have declined significantly from their recent peak, residential construction in Auckland remains high by historical standards.
In September 2019, just before the COVID pandemic took hold, monthly dwelling completions in Auckland were averaging just over 800 a month, so new housing supply in the city is up by more than 50% since then.
The graph below shows the monthly trend in new completions over the two years to September.
6 Comments
It's the only exit strategy developers have once they bought land, they either take a hard 30% loss if resell empty land, or to try to manage the loss down towards breakeven by building and completing the dev. Perhaps if lucky a small profit.
Now that the government has returned to allowing everyone and anyone to migrate here, it won't be long before there's another building boom.
OK thats good sh*T, is it medical or are you black marketing?
Asking for a Friend
Have they? Can you share your source please?
Up 50% compared to pre-COVID
It's welcome news this momentum is being maintained. Saturate the market I say. Send a clear message to the Speculator/Landlord that houses are for living in and the tenant can be fleeced no longer.
Here in NP there is sufficient work for one or two man band earth moving type work with commensurate sized machinery. Had one do a soak hole drilled recently for me. Three weeks ago I gave him the job and asked if he could do it by 20the Dec this year. Could be done but no indication in a three week period when it could be done. Get a call about 2 weeks later can I come tomorrow. I'm still of the opinion that the times when builders could either cock a snook at a job at worst or tell you in about 18 months time at best is very abnormal. We are now getting back to normality where it is claimed to be a serious downturn in the residential construction industry. Family member on the North Shore mentioned a house being constructed just up the road had at one construction stage a number of Chinese workers on site. Here during the construction boom times and also affected by the downturn or overstayers?
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.