Statistics reveal ongoing growth in consents nationwide

It also shows Auckland consents continuously hitting an all-time high

Statistics reveal ongoing growth in consents nationwide

Statistics New Zealand’s latest data has revealed ongoing growth in the number of new dwellings being consented throughout the country.

The report found 3,261 new dwelling consents issued nationwide in August 2019 – an increase of 0.8%, following drop in the last two months.

Melissa McKenzie, construction statistics manager at Stats NZ, said the figures still lagged behind record 40,025 consented homes in February 1974.

Meanwhile, Auckland consents continue to hit an all-time high – now with 14,345 compared to only 14,032 in June 2019. Townhouses made up a quarter of all new dwellings consented in the region, while stand-alone dwellings accounted for less than half of all new consents.

Read more: Consent figures skyrocket in July 2019

Satish Ranchhod, senior economist at Westpac, suggested focusing more on densification in Auckland to support a shift towards smaller and more affordable homes. However, he has warned that developing medium-density homes might lead to demolition of homes to make way for larger developments.

“That means that, although we are building a large number of homes, the overall net addition to the housing stock has been smaller than the number of consents implies,” Ranchhod said.

Still, consent issuance in August was above Westpac’s forecast for a 1.5% decline. Ranchhod said they predict a strong rise in construction activity this year, with the latest figures already supporting their forecast.

“Further ahead we expect a strong level of home activity for an extended period to address existing housing shortages and keep up with population growth,” Ranchhod said.

“But while the level of construction is expected to remain elevated for some time, beyond 2020 we don’t expect to see the sort of large increases in annual building activity that we’ve been seeing in recent years.”

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