Consents cool in August

Seasonally adjusted, the number of new dwellings consented dipped slightly in August

Statistics New Zealand’s latest data shows that new dwelling consents cooled in August. Although a total of 2,834 new dwellings were consented, compared to 2,291 in the same month last year, seasonally adjusted, the number of new dwellings consented fell 1.0%, following an 8.1% fall in July 2016.

This is the first time this year the seasonally adjusted number has fallen in consecutive months.

The total included 2,015 houses.

Seasonally adjusted, the number of houses consented rose 4.4% on the back of a 5.8% rise in July 2016.

New dwellings up in 11 of 16 regions

In August 2016 compared to August 2015, the number of new dwellings consented rose in 11 of the 16 regions.

Auckland (up 229 to 970; +31%), Otago (up 88 to 192; +85%) and Waikato (up 81 to 314; +35%) recorded the largest increase. Bay of Plenty, Hawke’s Bay, Manawatu-Wanganui, Nelson, Northland, Taranaki, Wellington and West Coast were the other regions to record an increase.

The largest decreases were in Canterbury (down 28 to 568; -5%), Southland (down 21 to 12; -64%) and Marlborough (down ten to 17; -37%). Gisborne and Tasman were the other regions to record a decrease.

Annual dwelling consents up

In the year ended August 2016, 29,627 new dwellings were consented – up 14% from the previous corresponding period. This is the highest total since March 2005. Most growth was in Auckland and nearby regions, while the number in Canterbury decreased.

Consents total $1.7 billion

The total value of building work consented in August 2016 was $1.7bn. This comprised $1.2bn of residential work, and $534m of non-residential work.

Building activity makes steady gains 

Statistics New Zealand’s Value of Building Work Put in Place for the June quarter shows that building activity grew by 5.5% on the back of 5.7% growth in the March quarter.

In current prices, all building activity rose 7% following a 6.8% increase in the previous quarter. The actual value of all building work was $4.9bn (up 21% year-on-year). Auckland ($1.8bn) and Canterbury ($1.2bn) were the two regions that contributed the highest value of building work this quarter.

Residential building activity rises

Residential building activity rose 5.6% by volume in the quarter, following a 5.8% rise in the previous quarter. The trend for residential building work has been generally rising for almost five years and is now 96% higher than the most recent low point in the September 2011 quarter.

The new series peak reached this quarter is 8.5% higher than the earlier peak 12 years ago in the June 2004 quarter.

In current prices, the value of residential building work rose a seasonally adjusted 7.3% in the quarter, following a 7% rise in the March quarter.

The actual value of residential building work was $3.1bn, with Auckland contributing $1.2 billion.

Non-residential building activity rises

Non-residential building work rose 5.3% in the June quarter, following a 5.6% rise in the previous quarter. In current prices, the value of non-residential building work rose 6.4% in the quarter, following a 6.4% rise in the March quarter.

The actual value of non-residential building work was $1.8 billion (up 15% from the same quarter in 2015).

Building activity value grows in most regions

All regional groupings except Wellington had seasonally adjusted increases in the total value of building work this quarter:

• Auckland – up 13%.
• Rest of North Island – up 8.9%.
• Rest of South Island – up 7.0%.
• Canterbury – up 6.6%.
• Waikato – up 3.3%.
• Wellington – down 10%.