New Zealand Property News Summary

Key Facts

  • Number of building consents for new homes in April: 2926.
  • Consents for new apartments particularly low with just 98 units last month.
  • Building consents for new dwellings have dropped from 50,688 in 2022 to 35,401 in 2024.
  • Total value of building work consented for new dwellings in the 12 months to April 2024: $15.9 billion, down from $19.2 billion in 2023.
  • Townhouses and home units are the most popular types of new dwellings consented.
  • The value of home improvement work has stayed at $2.5 billion for the last three years.
  • Non-residential building work value remained nearly unchanged at $9.6 billion in the last 12 months to April 2024.

Article Summary

The number of new building consents issued in April has remained stable, signaling a continued downward trend in the housing construction sector. Statistics NZ reported that 2926 new dwellings were consented in April, showing little change from the previous month. However, a notable drop in consents for new apartments emerged, with only 98 units approved, marking the first time since October 2018 that the monthly figure has fallen below 100.

Over the past two years, the number of building consents issued for new homes has decreased significantly. In the 12 months leading up to April 2024, the total fell to 35,401 from a high of 50,688 in the period ending April 2022. The total value of building work consented for new dwellings also experienced a decline, dropping to $15.9 billion in the most recent 12-month period from $19.2 billion the year before.

Townhouses and home units remained the most popular choices for new constructions, with 16,133 consents issued over the past year. Standalone houses followed with 15,397 consents, while consents for apartments and retirement village units stood at 2129 and 1742, respectively. Despite steady residential consent values at $2.5 billion for structural alterations over the past three years, high inflation in the building industry indicates a probable decrease in the volume of work.

The non-residential construction sector has also seen consistent consent values over the past two years, with a slight decrease from $9.7 billion to $9.6 billion. Rising costs within the industry suggest a reduction in the volume of work carried out, despite the monetary values remaining stable. This sector encompasses a variety of building types, including commercial premises, schools, and hospitals.

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