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Building slowdown confirms real estate slump

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  • Building slowdown confirms real estate slump

    Building slowdown confirms real estate slump
    11:30AM Wednesday February 27, 2008
    There's less work around for builders as new dwelling figures continue to decline.

    For the seventh straight month, the number of houses being built has decreased, as the property market slump continues.

    The number of building consents authorised in January was down 7.3 per cent on a year earlier, continuing a downward trend in the figures.

    Statistics New Zealand (SNZ) today said 1743 new dwelling unit consents were authorised last month, a decline of 137 from January 2007.

    The figures included a fall of 16 apartment consents to 203, while excluding apartments, 121 fewer new dwelling units were authorised.

    Despite the year-on-year fall, the seasonally adjusted number of dwelling unit consents was up 3.3 per cent last month, following a 3.9 per cent decrease in December.

    Excluding apartments the seasonally adjusted number rose 5 per cent in January, following a 12 per cent fall the month before.

    Residential building consents issued in January were valued at $543 million, $5 million more than January 2007.

    Non-residential building consents issued last month were worth $316m, a rise of $70m.

    For the year to January, 25,407 new dwelling unit consents were issued, down 2 per cent from the January 2007 year. For the same periods the value of residential building consents issued was $7.77 billion, an increase of 6.5 per cent.

    For non-residential buildings, the value of consents for the year was $4.25 billion, a 7.9 per cent increase.

    The trend series for residential building consents had shown decreases for the past seven months, while that for non-residential consents remained at a high level, SNZ said.

    A regional breakdown of the figures showed Auckland with 456 units in January, unchanged from the same month in 2007, and just six down on December.

    Canterbury had 293 consents last month, up from 238 in December and from 264 in January 2007.

    Both Bay of Plenty and Waikato were up from December but down from a year earlier, while Wellington was down nearly 40 consents from December to 127 but slightly up from January 2007.

    - NZPA

    Latest breaking news articles, photos, video, blogs, reviews, analysis, opinion and reader comment from New Zealand and around the World - NZ Herald
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    Why wasn't the headline

    Property Slump over as Housing Consents Rise

    Excluding apartments the seasonally adjusted number rose 5 per cent in January
    DFTBA

    Comment


    • #3
      Perhaps it is a property investor who wrote the headline and is trying to write the market down.
      "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

      Comment


      • #4
        Building slowdown = less growth of houses to live in. The law of supply and demand dictates that reduced supply = pressure on prices to rise. Therefore the headline should have read - House prices about to rise.

        Rob

        Comment


        • #5
          The amount of consents handed out doesn’t mean jack.
          Just have a look on trade me at the amount of sections with consented plans that are available.

          In the last six months I have gone from begging subbies to come to my jobs to having to beat them off with a stick. The market has total turn.
          The bigger companies are slowing. I’ve heard of one that was pricing jobs at cost just to keep the staff.

          We build our rentals and the downturn in the market SO FAR has only looked good for us. Rents are moving up, we had heaps of tenants to chose from, subbies are sharpening their pencils, getting them to the jobs on time is normal now, buying is a lot easier.

          I agree with you on your sums Halfway.

          Allan

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