New building consents continue to surge   30 Jun 2015

Hon Dr Nick Smith

Minister for Building and Housing
30 June 2015

New building consents continue to surge

Building and Housing Minister Dr Nick Smith today welcomed the release of the latest building consent figures from Statistics New Zealand, which show the annual number of consents at an eight-year high.

“There were 25,114 consents issued nationally in the year to May 2015 – the highest issued in any 12-month period since 2007. This is an increase of 10 per cent on the same period last year, and compares to the low of 13,236 during the Global Financial Crisis slump,” Dr Smith says.

“This latest building consent data shows the strongest sustained growth in Auckland housing on record, with four consecutive years of over 20 per cent growth. Consents at 8195 in the year to May 2015 represent an increase of 21 per cent on the previous year, and the fastest rate of new house build in 10 years.

“The 4274 consents in Christchurch in the year to May 2015 are also an all-time record, but it is noteworthy that the monthly figures for March, April and May 2015 are lower than those for the same period in 2014. This confirms the Government’s view that the residential recovery in Christchurch post-earthquake is nearing, and we can expect to see new housing continue to slow. We expect to see building activity shift from the Christchurch to Auckland market over the next 12 months.

“These positive figures show the Government’s housing policies are delivering. We are freeing up more land faster through our eight Housing Accords and 116 Special Housing Areas. We have initiatives in place to constrain building materials costs, rein in development contributions, cut compliance costs and invest in improved sector productivity. Our new $435 million HomeStart support package, which came into effect 1 April, will help 90,000 people into home ownership.

“The strong net migration data which shows fewer New Zealanders leaving is good news, but puts more pressure on the housing market. That is why the Government will be continuing to push forward with our housing programme to further grow housing supply.”

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