MAY CONSENTS ARE UP BUT THE TREND IS "FLAT"

By NZHJ June 30, 2016 Industry news

Above: The value of residential building consents, June 2014 to May 2016 ($ millions).

Statistics NZ’s May 2016 consent figures are all positive but come with a warning that the trend is flattening.

The actual value of building work consented in May 2016 was $1.6 billion, comprising:

  • Residential: $1,078 million (+24%).
  • Non-residential: $492 million (+1.1%).

 Houses have it in volume - Consents were issued for 2,520 new dwellings (+16% on May 2015), comprising:

  • 1,956 houses (the highest number since August 2007).
  • 327 townhouses, flats & units.
  • 121 retirement village units.
  • 116 apartments.

 Dwellings around the regions - In 10 of the 16 regions, the number of new dwellings consented in May 2016 was up on May 2015. The regions with the largest increases were:

  • Northland: 114 (+87%).
  • Bay of Plenty: 242 (+67%).
  • Waikato: 317 (+25%).
  • Auckland: 732 (+12%).
  • Canterbury: 618 (+13%).

Dwellings year to date - In the 12 months to May 2016, 28,387 new dwellings were consented (+13% on the May 2015 year) which Stats NZ says is an 11-year high.

Most of the growth was in the Auckland and nearby regions, while Canterbury decreased.

Our running tally for the calendar year to date (Jan-May 2016) shows a slight flattening of growth but still comfortably ahead on the equivalent period last year:

           Volume                   Value ($ millions)                         

2007    10,345                                                                                    

2008    9,210    –11.0%                                               

2009    5,209    –43.4%                                               

2010    6,678    +28.2%                                               

2011    4,993    –25.2%        1,861                          

2012    6,463    +29.4%       2,363   +27.0%

2013    8,055    +24.6%       3,042   +28.7%

2014    9,614    +19.4%       3,749   +23.2%

2015    10,015  +4.2%         3,964   +5.7%

2016    11,270  +12.5%       4,880   +23.1%

 

Education leads non-residential value 

The value of consents for non-residential buildings in May was $492 million (+1.1%), the largest contributors to which were:

  • Education: $115 million.
  • Shops, restaurants & bars: $100 million.
  • Offices, administration & public transport: $66 million.

Canterbury close behind Auckland in non-residential - In the year to May 2016, the regions that saw the highest value of non-residential building consents were:

  • Auckland: $1.9 billion.
  • Canterbury: $1.8 billion.
  • Wellington: $0.5 billion.

 

Summary, year to date

For the 12 months ended May 2016, compared with the year ended May 2015, the consent values increased for:

  • All buildings: $17 billion (+14%).
  • Residential buildings: $11 billion (+18%).
  • Non-residential buildings: $5.9 billion (+8.5%).

 Below: The value of non-residential building consents, June 2014 to May 2016 ($ millions):

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