Property

Housing consents weakness intensifies

The residential property sector remained soft in September, measured by building consents, with the effects of the Canterbury earthquake adding to the woes of the struggling residential construction sector.

Friday, October 29th 2010

The seasonally adjusted number of new residential buildings authorised, excluding apartments, fell 2.6% to 1,104 in September compared to the previous month, the lowest level since July 2009, according to data release by Statistics New Zealand today.

The housing market remains "in the doldrums," Goldman Sachs economist Philip Borkin says. Issuance and construction "looks set to remain lacklustre."

The trend for new dwellings, excluding apartments, has been falling since March, following increases that began in 2009. The current level is 43% lower than the June 2007 level, a benchmark before the global financial crisis.

"The earthquake on September 4 has had an impact on building consents issued in Canterbury," the department said.

"The most affected territorial authority offices were closed temporarily, and the number of consents they authorised was lower than average. Only a handful of consents authorised in September were earthquake-related, and none were for new dwellings."

When the volatile apartment category is included, the number of new housing units authorised rose 0.5% to 1,183, following an 18% decline in the previous month. The value of residential building consents was $450 million in September, down 6.2% compared with September 2009.

Fewer new dwellings were authorised in six of New Zealand's 16 regions in September compared with the same month last year. The three regions with the largest decreases were Auckland, down 119 units, Canterbury, down 68 units, and Waikato, down 31 units. Wellington region has the largest increase in consents, up 27.

The value for non-residential building consents was $365 million in September, up 42% compared with the same month last year.

Seven of the 11 building types recorded increases in the value of consents, led by hospitals and nursing homes, up $65 million, and office and administration buildings, up 19 million. Hostels and other short-term accommodation led declines, down $17 million.

Most Read

SBS FirstHome Combo 4.29
Unity First Home Buyer special 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
ICBC 4.85
TSB Special 4.89
Kiwibank Special 4.89
ASB Bank 4.89
Westpac Special 4.89
BNZ - Std 4.89
AIA - Go Home Loans 4.89
Nelson Building Society 4.93
ICBC 4.95
SBS Bank Special 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
Kainga Ora 4.95
Westpac Special 4.95
AIA - Go Home Loans 4.95
SBS Bank Special 5.39
Westpac Special 5.39
ICBC 5.39
Co-operative Bank - Owner Occ 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
ASB Bank 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
ASB Bank 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.