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.
3 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.
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.
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