Property

Building consent values skyrocket

A dramatic rise in the value of construction work last year came alongside the 48,899 building consents issued that well and truly broke 1974’s 47-year record of 40,025.

Thursday, April 07th 2022

Stats NZ data show the total value of building work consented was $29.38 billion, up $6 billion from 2019. Over the past seven years the value of building work has doubled from $14.63 billion in 2014.

In the December quarter last year alone total building value was $8.1 billion, up 17% from the December 2020 quarter. Total building volume rose 8.9% compared with the September quarter. From that residential building rose 5.2% and non-residential was up 16%.

Construction prices keep rising and in the December quarter lifted 4% for residential building and 2.2% for non-residential building, as measured by the capital goods price index.

It is not just residential construction value that is increasing. Three years ago the total value of non-residential building work consented was $7.46 billion but by last year that figure increased to $8.19 billion, up 9.8% compared to pre-Covid levels.

Much of that work is for new warehouse, storage and manufacturing facilities, while office and retail projects have fallen away because of new hybrid office working arrangements and shops under restrictions and a shift to on-line consumer spending during the pandemic lock-downs.

There has also been a surge in health and education. By the end of last year the value of hospitals and nursing homes reached a record high of $1.029 billion, up 17% of the $606 million high of 2019.

Education buidings consent values were up 37% from 2019 to hit a record high of $1.46 billiion last year.  

The volume of building is not expected to slow down over the new few years.

MBIE’s National Constrution Pipeline report released at the end of last year forecast the total value of construction work to be worth $48.3 billion in 2024.

Of all construction, residential is expected to outpce other types of building to hit a peak of $27.8 billion in 2024.

Auckland’s powerhouse residential construction already accounted for more than a third of the country’s building activity two years ago and is now expected to grow by about 11% to $19 billion by 20026.

Comments

No comments yet

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.