Building consents rise despite volatility

Auckland and Canterbury combined account for more than 50% of new dwelling consents in September

Statistics New Zealand’s latest data shows that 2,242 new dwellings were consented in September, including 1,781 homes and 109 apartments.

Seasonally adjusted, the number of new dwellings consented fell 5.7%, following a 5.3% fall in August. For homes only, it rose 1.5% on the back of a 2.6% drop in August.

The trend for the number of new dwellings consented is at its highest level since November 2004.

Statistics New Zealand’s business indications manager Clara Eatherley said that, overall, new building consents are on the up.

“While we see a bit of volatility from month to month, the overall picture recently has been growth in building consents, both on the residential and non-residential sides,” Ms Eatherley said.

In the regions

In September, nine of the 16 regions consented more dwellings than in September 2014.

The regions with the biggest increases were Waikato (up 158 to 320; +98%), Auckland (up 106 to 643; +20%) and Bay of Plenty (up 72 to 188; +62%). Other regions to record an increase were Gisborne, Hawke’s Bay, Northland, Southland, Taranaki and Tasman.

“In the regions surrounding Auckland, growth is being driven by new houses, while in Auckland itself, apartments are also a big part of the picture,” Ms Eatherley said.

Wellington (down 67 to 126; -35%), Canterbury (down 54 to 525; -9%) and Nelson (down 16 to 19; -46%) recorded the largest decreases. Manawatu-Wanganui, Marlborough, Otago and the West Coast were the other regions to consent fewer dwellings in September compared to the same month last year.

Despite the decrease, Canterbury still accounted for nearly a quarter of that national total, and, when combined with Auckland, the two regions accounted for 52% of the national total.

The trend for the number of new dwellings consented is at its highest level since December 2004 in Auckland, while it appears to have stabilised in Canterbury after falling 10% from its August 2014 peak.

The trend appears to be increasing across the rest of the country except in Wellington, where it has been in a slow decline since February.

The value of non-residential building work consented in September was $619 million, up $134 million (28%) compared to September 2014.

Consent values total $1.5 billion

The total value of building work consented in September 2015 was $1.5 billion – comprising $911 million of residential work, and $619 million of non-residential work.

For the year ended September 2015, compared with the September 2014 year, the value of building consents increased for:

All buildings – up $1.7bn (12%) to $16bn.

• Residential buildings – up $945m (10%) to $10bn.
• Non-residential buildings – up $755m (15%) to $5.7bn.